Calculate the net present value

Assignment Help Accounting Basics
Reference no: EM132777283

Question - A corporation is considering purchasing a plant asset. The asset will cost $90,000. The business estimates that if they purchase the asset they will have additional future net cash flows of $21,000 each year for 5 years. The present value of these future net cash flows is $90,919. Calculate the net present value?

Reference no: EM132777283

Questions Cloud

Prepare a tabular comparison of the annual depreciation : Prepare a tabular comparison of the annual depreciation and book value for each year under straight-line and Double Declining Balance depreciation
Lots of people are frustrated with politics : Lots of people are frustrated with politics in America today.
Packaging of the current president : Campaign consultants are skilled at packaging a candidate, highlighting those aspects of the candidate's policy positions and personality
Create a complete depreciation schedule for the truck : Create a complete depreciation schedule for the truck using straight-line depreciation method. You will apply the half-year convention
Calculate the net present value : Question - A corporation is considering purchasing a plant asset. The asset will cost $90,000. Calculate the net present value
Determine the monthly units karak company should sell : Therefore, the CEO asked you to determine the monthly units Karak Company should sell to cover all fixed and variable costs for Product (A)
What cost of capital for otherwise identical all-equity firm : The beta of Acetate's equity is 1.15. The firm pays no taxes. What is the cost of capital for an otherwise identical all-equity firm?
What are the projected total operating assets : Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets
What is the yield to maturity on this bond : The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 11 years until maturity. What is the yield to maturity on this bond

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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