Calculate the expected npv negative amount should be

Assignment Help Accounting Basics
Reference no: EM13389778

An auto plant that costs $220 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $280 million if the line is successful but only $150 million if it is unsuccessful. You believe that the probability of success is only about 52%. You learn whether the line is successful immediately after building the plant.

a-1.) Calculate the expected NPV. (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 1 decimal place.) EXPECTED NPV (million):

b-1.) Calculate the expected NPV. (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EXPECTED NPV (million):

Reference no: EM13389778

Questions Cloud

It is the controllers belief that the switch in inventory : the controller of sagehen enterprises believes that the company should switch from the lifo method to the fifo method.
A client comes to you thinking regarding starting a : a client comes to you thinking about starting a consulting business. your client is specifically interested in what
Illustrate out the term current liability from the : illustrate out the term current liability? from the perspective of the user of financial statements why do you believe
Ratios provide the users of financial statements with the : ratios provide the users of financial statements with a great deal of information about the entity. do ratios tell the
Calculate the expected npv negative amount should be : an auto plant that costs 220 million to build can produce a line of flexfuel cars that will produce cash flows with a
Individual mannerisms and thought processes are unique to : individual mannerisms and thought processes are unique to everyone. these differences can cause harmony or dissention
Explain how will government regulation impact decision : you have been part of the orthopedic center for 5 years. in that time you have seen the center grow and the need for
1 high levels of competition might be caused by arapid : 1 high levels of competition may be caused bya.rapid industry growthb.low fixed costsc.a small number of competitorsd.a
Starmart manufactures skateboards the company has the : starmart manufactures skateboards. the company has a highly automated production process so itallocates manufacturing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Adjustment on a bank reconciliation

A check correctly written and paid by the bank for $395 is incorrectly recorded on the company's books for $359. The appropriate adjustment on a bank reconciliation would be to?

  Concept of straight-line amortization

Menke uses straight-line amortization. Ignoring income taxes, the amount reported in Menke's 2010 income statement from this investment should be $4,500.

  Job-order costing system

In a job-order costing system, direct labor costs usually are recorded initially with a debit to:

  Advances from customers

Which one of the following should not (would not) be used instead of "Advances from Customers?"?

  Determining capital structure in balance

Fauver Industries plans to have a capital budget of $650,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $375,000.

  Accounting research methodology

Please explain to me the accounting research methodologies of deductive, inductive and pragmatic research methods. Give me some examples to reinforce these methods.

  Stoolco a domestic corporation produces a line of low cost

stoolco a domestic corporation produces a line of low cost bar stools at its facilities in missouri for sale throughout

  Gain or loss on transaction

A bond issued with a face value of $200,000 and a carrying amount of $195,500 is paid off at 98 1/2 and retired. The gain or loss on this transaction is:

  Passive loss deduction that can offset nonpassive income

Bill Goggans died and left passive activity property to his nephew, Travis. Bill's basis in the activity was $30,000, while Travis' basis was stepped up to $50,000. Suspended losses amounted to $22,000. How much is the passive loss deduction that ..

  How much is included in keith gross estate based on

At the time of his death on June 6, 2011 Keith was involved in the following real estate.

  Basics of capital account balance at the end of year

Carla and Eliza share income equally. During the current year the partnership net income was $40,000. Carla made withdrawals of $12,000 and Eliza made withdrawals of $17,000. At the beginning of the year, the capital account balances were: Carla c..

  Schedule of future taxable and deductible amounts

Prepare a schedule of future taxable and deductible amounts. Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2007, assuming a tax rate of 40% for all years

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