User Account

All Pages

Calculate the net present value for project A

Assignment Help Managerial Accounting
Reference no: EM132806367

Question - Vary Company is considering two investment projects with cash flows as described below:

Project A: Cash investment now $11,000

Cash outflow for 5 years $3,000

Addition cash inflow at the end of 5 years $21,000

Project B: Cash investment now $21,000

Cash inflow at the end of 4 years $11,000

Cash outflow for 3 years $5,000

Addition cash inflow at the end of 4 years $15,000

Required: You Must show all calculations.

a. Calculate the net present value for project A. Monson Company uses a 12% discount rate.

b. Calculate the net present value for project B. Monson Company uses a 12% discount rate.

c. Which project should the company accept and why?

Reference no: EM132806367

Questions Cloud

Demonstrate effective strategic leadership : What actions does this CEO take that demonstrate effective strategic leadership?
What is the maximum price Cyrus should pay : His broker told Cyrus the bond is yielding 5%. What is the maximum price Cyrus should pay for each $1,000 Rogers Communications bond
What amount will be debited to advertising expense : When this transaction is recorded, what amount will be debited to advertising expense? The agreed cost of an item to be purchased by a business on credit
What are the positive and negative impacts technology have : What are the positive and negative impacts this technology may have? When considering this technology or trend, who should pay for technological infrastructure.
Calculate the net present value for project A : Calculate the net present value for project A. Monson Company uses a 12% discount rate. Which project should the company accept and why
Compute the materials variances for silver tubing : Compute the materials variances for silver tubing and comment on their meaning. One product, a thermometer, measures patient temperatures orally
By what amount would the equivalent units : By what amount would equivalent units if production for conversion costs for month of January differ if FIFO METHOD were used instaed of weighted method
Prepare the necessary inwrnel entry to record depreciation : Prepare the necessary inwrnel entry to record the depreciation. Compute the depreciation for the fourth year using the production method
How can ai help decrease social isolation : How can AI help decrease social isolation? Can it form social connections, or does it leave us with 500 Facebook friends and no one to call for help?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How do perform transaction analysis and indicate the account

How do perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation

  What seasonal relatives would describe the situation

Business on Friday night, 26 percent on Saturday night, and 19 percent on Thursday night. What seasonal relatives would describe this situation?

  Which statement about the car industry is not likely true

Which statement about the car industry is NOT likely true? Differentiation strategy is a viable choice for firms entering the car industry.

  How much goodwill would be created by iou acquisition

How much goodwill would be created by IOU's acquisition of UNI? IOU Inc. purchased all of the outstanding common shares of UNI Inc. for cash of $800,000.

  Develop an understanding of financial statements structure

HI5001 Accounting for Business Decisions Group Assignment. The assignment aims to develop an understanding of financial statements structure and their use in decision-making. The task is to choose a publicly listed company from the Australian Stock..

  What cocacola management conclude about consumers preference

From given findings, what can Coca-Cola's management conclude about consumers' preferences between Coke Classic and New Coke?

  Calculate the gross selling price used to record the sal

Calculate the gross selling price used to record the sale and the amount that the buyer would have to remit when paying the invoice.

  Find month overhead costs

If it is expected that the company will incur 977 machine hours in the coming month, predict that month's overhead costs. XYZ Company uses the formula y = a + b

  Comment on the price and usage variance

Comment on the price and usage variance. Smith Ltd company produces apple juice sold in 4.5 litre bottles. Recently, the company adapted

  Needham company job costing system-calculate operating

Needham Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Needham for 2008 are as follows:

  Financial statement effects of bond transactions

Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2014, Trueman Corporation issued $700,000 of 20-year, 11% bonds for $647,338, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 an..

  Calculate charge for overhead to each of three production

Calculate the charge for overhead to each of the three production cost centers, including the amounts reapportioned from the two service centers

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