Calculate the net present value

Assignment Help Accounting Basics
Reference no: EM132844224

Question - The table below shows the expected annual cost and benefits of Project A that is expected to serve BlueMart for another 4 years after a 1 year of development program that was succesfully completed recently.

Expected

Year 1

Year 2

Year 3

Year 4

Year 5

Benefits/Cost Expected

-

$150,000

$160,000

$170,000

$180,000

Benefits Cost

$200,000

$70,000

$80,000

$90,000

$100,000

Required -

1. Calculate the Payback Period, correct to 2 decimal places.

2. Calculate the Net Present Value (NPV) , correct to 2 decimal places. The recent interect rate is 4.5%.

Reference no: EM132844224

Questions Cloud

Find what is the value of the growing perpetuity : Your Aunt has promised to leave annuity. The payments are expected to go on indefinitely and the interest rate is 9%. What is value of the growing perpetuity?
What could the diagnosis be for the patient : Patient comes into the clinic with the following symptoms nausea, vomiting and diarrhea, The patient has a history of drug abuse and possible Hepatitis C.
Explain different interpretations of codes and regulations : Nursing as a profession firmly depends on the ethical principles of beneficence, respect for persons, and justice. These ethical principles are the standards.
Find for the percentage of completion during the year : Compute for the percentage of completion during the year 2019. CABUGERO DEVELOPMENT COMPANY., started work on a construction contract in 2018.
Calculate the net present value : Calculate the Net Present Value (NPV) , correct to 2 decimal places. The recent interect rate is 4.5%
Human resources in health care industry : Why is human resources in the health care industry just as important as it is in other industries? Provide an example.
What is the original contract price : What is the Original Contract Price 2017? The building was estimated to be built at a total cost of P15,000,000 and is scheduled for completion.
How the advancement was used during the pandemic : In this unit, you explored different types of digital divides, including geographical (urban-rural), racial, intergenerational, and international.
Write reflection paper highlighting my self-awareness score : Write a Reflection paper highlighting MY self-awareness score and how I can improve this score; include content on the Skill Gap results

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