Calculate payback period for investment for jlk corporation

Assignment Help Financial Accounting
Reference no: EM132805344

Problem a: Why is the capital budgeting decision crucial and important for a firm? State why the capital budgeting errors are so costly?

Problem b: The JLK Corporation is considering an investment that will cost RM80,000 and have a useful life of 4 years. During the first 2 years, the net incremental after-tax cash flows are RM25,000 per year and for the last two years they are RM20,000 per year. Calculate the payback period for this investment.

Reference no: EM132805344

Questions Cloud

What amount of total assets did beta reported : What amount of total assets did Beta reported in its balance sheet immediately after the acquisition; what amount of assets was reported in the consolidate
What would cash flow from operations have been : What would cash flow from operations have been if Quantum, LLC. had used the double-declining balance method
Network scanning techniques : Explain in your own words what type of information can be obtained by using network scanning techniques
What is the value of the inventory transferred : What is the value of the inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units
Calculate payback period for investment for jlk corporation : Net incremental after-tax cash flows are RM25,000 per year and for the last two years they are RM20,000 per year. Calculate the payback period for investment.
How is the development applicable outside of social sciences : Describe how the developments changed society's understanding. How is the development applicable outside of the social sciences?
What is the net present value of the investment : What is the net present value (rounded to the nearest thousand) of the investment assuming the required rate of return is 10 percent
Change management process for it security : Explain in your own words what some of the challenges are with the Change Management Process for IT security.
What is the value of retirement plan : Assume that you contribute $300 per month, Given a 9 percent interest rate, what is the value of your retirement plan after 45 years?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What yield would predict for each of the two investment

Suppose you are considering two possible invvestment opportunities, a 12 year, What yield would you predict for each of these two investments?

  Discuss transaction costs and it different impacts

Transaction Costs explains many of the macro trends of today, such as globalization and industry consolidation. Discuss transaction costs and it's different impacts.

  How much interest expense would be reported on the income

How much interest expense would be reported on the income statement for the year ending December 31, 2014? How would the balance of $375,201.09 at December 31, 2014 be reported on a balance sheet as of that date?

  What ways can the balance sheet be expanded

What ways can the balance sheet and income statement be expanded to determine profit and financial position? Have included my income statement

  Accounting system uses special journals

Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer.

  What are the monthly lease payments?

The buyout on the lease is? 51% of its purchase price and it is due at the end of the term. What are the monthly lease payments? (before tax)?

  Make journal entries for duckworth corporation

Make journal entries (in general journal form) to record the above transactions. Use a 360-day year in making the interest calculations

  Make the journal entries that would have been processed

Make the journal entries that would have been processed in the general journal of King Kindness on the dates underlined above in order to account.

  Determine the best pricing and production strategy

Determine the best pricing and production strategy for the company. The commodity that your company produces is price sensitive

  Determine the break even point in units and dollars

Using the following information determine the break even point in units and dollars? What is the Contribution Margin? What is the Contribution Margin Ratio? How many units does a business need to sell in order to earn a profit of $60,000? What happen..

  Comparison of investment based on payback

Comparison of Investment based on Payback, NPV, IRR and Profitability Index and require a 15 percent return on your investment.

  Bonds are sold at a premium

Bonds are sold at a premium if

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd