Calculate probabiity of achieving positive net present value

Assignment Help Accounting Basics
Reference no: EM13143921

Parker industries is analysing a 200000 equipment investment to produce a new product for the next 5 years. a study of expected annual after tax cashflows from the project produced the following data. using a hurdle rate of 14% calculate the probabiity of achieving a positive net present value.

Reference no: EM13143921

Questions Cloud

Draw a chromosome map showing the relative distances : Chromosome map. Make sure your map is correct with respect relative distance. Use a key such as 1 cm = 1 map unit.
What did the central banks do to stabilize the financial sys : What did the central banks do to stabilize the financial systems in 2007-2009 and Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
Compute the equilibrium pressure : After 48 h the pressure in the flask was observed to be constant at 488.0 torr. a. Calculate the equilibrium pressure of H2(g). b. Calculate Kp for this reaction.
Estimate mean monthly rent paid by whole student : Assume that, the standard deviation of a monthly rents paid by students in a particular town is $40 A random sample of 100 students was taken to estimate the mean monthly rent paid by the whole student population- solution?
Calculate probabiity of achieving positive net present value : Parker industries is analysing a 200000 equipment investment to produce a new product for the next 5 years. a study of expected annual after tax cashflows from the project produced the following data. using a hurdle rate of 14% calculate the proba..
Find probability that among calls recieved by switchboard : Use poisson approximation to the binomial distribution to find the probability that among 120 calls recieved by the switchboard.
Compute the total pressure in the container : a certain amount of NH4OCONH2 is placed in an evacuated rigid container and allowed to come to equilibrium. Calculate the total pressure in the container at equilibrium.
Accountant method of recording returns : The cost of the merchandise returned was $40,000. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $65,900. Was the accountant's method of recording returns acceptable?..
Conclude that mean weight of bags is less than fifty pounds : Can Mr. Rutter conclude that the mean weight of the bags is less than 50 pounds? Use the 0.1 significance level. In a brief report, tell why Mr. Rutter can use the z distribution as the test statistic.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Weighted-average process in the costing system

Sumter Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

  Analyze the types of risks and rewards

Speculate which regulatory changes will be the top priority for management. Then, suggest a timetable in which management should start getting ready for the change.

  Calculate the interest revenue from this transaction

What interest rate should be used to calculate the interest revenue from this transaction for the years ended December 31, 2011 and 2012, respectively?

  Classification as direct labor

Which of the following is not classified as direct labor? a. bottlers of beer in a brewery b. copy machine operators at a copy shop. c. wages of supervisors d. bakers in a bakery.

  Application of the financial statement

Students will prepare a two to three (2-3) page response to the following: • Select either the balance sheet or income statement and explain how the use of it may be applied to your everyday life.

  Direct materials price

The quantity purchased is used in computing the direct materials price variance because you are looking for the difference in the price of materials for the job

  Accounting rate of return

LaGrange Corp. has forecasted that over the next four years the average annual after-tax income will be $45,731. The average book value of the manufacturing equipment that is used is $167,095. What is the accounting rate of return?

  Potential non-misstatement timing differences

Assume an accounts receivable confirmation is returned with a note to the auditor describing a difference between your client's records and the customer's records. Clearly describe below two potential non-misstatement timing differences that could..

  Determine the following 2011 amounts and ratios

The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2013 balance sheet reported the following: cash, $1,340,000; prepaid expenses, $400,000; noncurrent assets, $2,800,00..

  Direct method of reporting cash flows

Using the direct method of reporting cash flows from operating activities, what were Hogan's cash payments for operating expenses?

  Which reflects the appropriate length and sections

The Audit Report and Internal Control Evaluation. This paper should be posted as a Microsoft Word attachment in the Assignment Section and should adhere to APA formatting style.

  What it the npv of the proposed acquisition

What it the NPV of the proposed acquisition? Note that you must first calculate the value to Blazer of Laker's equity.

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