Calculate the initial investment

Assignment Help Finance Basics
Reference no: EM132611694

An international company that has operated in Vietnam for 5 years is looking for a new building in Ho Chi Minh, Vietnam to set up its Head Office. The company bought a block of land in District 2 three years ago for $1,200,000 as anticipated to build aware house. However, the company has decided to outsource the distribution channel. If the land is sold today, it has a value of $2,150,000. The company wants to build its new HO on this land. The site requires $115,500 worth of grading before it is suitable for construction.The construction will cost $3,150,000. The consulting cost relating to the land purchase is $11,500. Calculate the initial investment.

Reference no: EM132611694

Questions Cloud

Prepare journal and ledger account to record transaction : The directors decided to issue 500 000 ordinary shares on 31 March 2020, Prepare journal entries and ledger accounts to record the above transactions.
What you liked most about the elevator speech : An elevator speech is an excellent way to convey your skills while networking and seeking employment. Typically, an elevator speech is a one-minute summary.
Role in development of capital market : What are Mutual Funds and discuss its role in development of capital market?
Analysed retailing business : Analysed one retailing business vis-à-vis changes and trends taking place worldwide in the retail industry.
Calculate the initial investment : The construction will cost $3,150,000. The consulting cost relating to the land purchase is $11,500. Calculate the initial investment.
Find the total cost that should have been recorded : On May 21, Christine, while working on Job A-1 used $27 of indirect material. Find the total cost that should have been recorded
What the allotment the balance in the share capital account : All allotment monies were received by 31 August 2014. Following the allotment the balance in the Share Capital account would be
What is the probability that are also neighbors : Which each node randomly chooses c neighbors. If P and Q are both neighbors of R, what is the probability that they are also neighbors of each other?
Discuss enron corporate governance from perspective : What is the governance role of an auditor in a public company? Why might Arthur Anderson have been criticized for their conduct at the time?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is industrial return on equity

Industrial Corporation has a net income-to-sales (profit margin) ratio of .03, a sales-to-assets (asset utilization) ratio of 1.5, and a debt-to-asset ratio.

  Develop a risk profile for the optimal strategy

Hemmingway, Inc. is considering a $5 million research and development (R&D) project. Profit projections appear promising, but Hemmingway's president.

  Discount the incremental cash flows of expansion project

The Rock Co. is considering expanding its business. What is the discount rate used to discount the incremental cash flows of the expansion project?

  Meaning of the terms fiscal policies and monetary policies

Explain the meaning of the terms fiscal policies and monetary policies. - Define discount rate of interest and prime rate.

  Calculate the present value of the project to the firm

A firm has the opportunity to invest in a project that is expected to pay an end-of-year annual return of $2 million for each of the next fifteen years after.

  A project has an expected risky cash flow of 300 in year 3

a project has an expected risky cash flow of 300 in year 3. the risk-free rate is 5 the market risk premium is 8 and

  What is the current price of bond m and bond n

it makes no coupon payments over the life of the bond. The required return on both these bonds is 10 percent compounded semiannually.

  How does boeing achieve a cash cycle of negative 100 days

Why is Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?

  Importance of trade finance

Given the importance of trade finance to facilitate international trade and the slowing down of international trade activities

  Estimate the beta of the new debt

Suppose Miles is considering investing cash on hand in a new investment that will increase the volatility of its assets by 10%. What is the minimum NPV such that this investment will increase the value of Miles’ shares?

  Various systems of accounting

Give relevant Explannation as well as examples to: Question 1: What are the various systems of Accounting? Explain them.

  Calculation of stock price and required rate of return

Calculation of stock price and required rate of return and What is the required rate of return

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