Brown corp is thinking of investing 70000 to start a

Reference no: EM13592073

Brown Corp. is thinking of investing $70,000 to start a bookstore. Brown plans to withdraw $15,000 from the business at the end of each year for the next five years. At the end of the fifth year, Brown plans to sell the business for $110,000 cash. At a 12% discount rate, what is the net present value of the investment?

Reference no: EM13592073

Questions Cloud

On december 31 2010 dow steel corporation had 800000 shares : on december 31 2010 dow steel corporation had 800000 shares of common stock and 300000 shares of 8 noncumulative

Explain how the variances could explain the following : the plant manager decides that what is needed is an objective appraisal of what should be done. he hires june collins

Didde co had 300000 shares of common stock issued and : didde co. had 300000 shares of common stock issued and outstanding at december 31 2010. no common stock was issued

Sleek ride a company providing limo services has a december : sleek ride a company providing limo services has a december 31 year-end date. for sleek ride the following transactions

Brown corp is thinking of investing 70000 to start a : brown corp. is thinking of investing 70000 to start a bookstore. brown plans to withdraw 15000 from the business at the

In the current year company a is formed with 630000 in : in the current year company a is formed with 630000 in capital from the sale of 21000 shares of stock at 30 a share.

How large would the annual net cash inflows from the : norris company is considering investing in automated equipment with a ten-year useful life. managers have estimated the

Wenner furnace corp purchased machinery for 421290 on may 1 : wenner furnace corp. purchased machinery for 421290 on may 1 2012. it is estimated that it will have a useful life of

Morning globe corporation uses a process costing system for : morning globe corporation uses a process costing system for its two production departments mixing and packaging. the

Reviews

Write a Review

Required(*) Message

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?

Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

Accounting problems

Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.

Theory of interest - term structure of interest rates

Term Structure of Interest Rates

Write a report on internal controls

Write a report on Internal Controls

Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

Liquidity and profitability

Distinguish between liquidity and profitability.

What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

Capm and venture capital

CAPM and Venture Capital

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages