Calculate present worth cost of the building

Reference no: EM131881402

Question: 1. A company has the option of building a warehouse now or building it three years from now. The cost now would be $400,000, but three years from now the cost will be $500,000. If the company's minimum attractive rate of return (real i) is 10% per year and the inflation rate is 5% per year, the present worth cost of the building in three years when inflation is considered is?

Reference no: EM131881402

Questions Cloud

Compute the present value of the note payable : Compute the present value of the note payable, using a discount rate of 1½ percent per month. Prepare the journal entries in the accounts of Showcase

What inventory balance would badger report : On January 1, 2016, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $114,000. The 2016 ending inventory.

Kathy payment will be the same under either option : what nominal interest rate compounded monthly can Bank B charge on the loan, so that Kathy's payment will be the same under either option?

Calculate the market capitalization rate : Calculate the market capitalization rate. What is the intrinsic value of the stock?

Calculate present worth cost of the building : A company has the option of building a warehouse now or building it three years from now. The cost now would be $400,000, but three years from now the cost.

Is ramin covered member on the bank audit : Is Ramin a covered member on the bank audit? Is his cousin’s employment at the bank relevant to issues of independence?

Analysis of performance measurement strategy : Evaluate one of the frameworks and explain the advantages and disadvantages of that framework (500 words). with 3 citations

Organisation change to fit the technology : In the adoption of operations and/or Internet-based technology, should the organisation change to fit the technology or should the technology change

Write a report on the hewlett-packard company : MN612 - Enterprise Architecture - Write a report on the Hewlett-Packard Company (HP) case study and It highlights how the best practices of Enterprise

User Account

All Pages