User Account

All Pages

Calculate the net present value and profitability index

Assignment Help Accounting Basics
Reference no: EM132524542

Question - Using my free remaining questions for an open assignment that's due 12 pm! Please help :'(

Jonczyk Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $532,000, has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $71,000. Project B will cost $351,000, has an expected useful life of 14 years and a salvage value of zero, and is expected to increase net annual cash flows by $49,000. A discount rate of 8% is appropriate for both projects. Click here to view PV table.

Required -

Calculate the net present value and profitability index of each project.

Which project should be accepted based on net present value?

Which project should be accepted based on profitability index?

Reference no: EM132524542

Questions Cloud

Describe how pornography is treated as public health crisis : Describe how pornography is treated as a public health crisis, and some of the impacts of its construction as a "crisis." Webber & Sullivan
Calculate the total price and quantity variances : During the month of April, the company manufactures 150 units and incurs the following actual costs: Calculate the total price and quantity variances
Discuss the advantages and disadvantages of houston : Discuss the advantages and disadvantages of Houston, Texas, in terms of emergency management and resiliency. Provide the suitable example.
Sub-component of the current account : Classify the following as a transaction reported in a sub-component of the current account, or the capital and financial accounts of the countries involved:
Calculate the net present value and profitability index : Jonczyk Company is considering two different, mutually exclusive capital expenditure proposals. Calculate the net present value and profitability index
How much will the runkles have saved by the end : Meet the Runkles: Harry and Marcia. The Runkles have two boys, Brian and Terry. Brian turns 11 years old in 2020 and starts secondary school in (2021) while
Creating strategic plan : What components would you consider necessary for creating a strategic plan?
Determine the reorder point in terms of gallons of pigment : Assuming that it takes 20 days to receive an order once it has been placed, determine the reorder point in terms of gallons of pigment
Firm commitment initial public offering managed : R sheen is going to be a public limited company tommorow with a firm commitment initial public offering managed by the investment banking firm MCB.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd