User Account

All Pages

Calculate the net present value of a software update project

Assignment Help Managerial Accounting
Reference no: EM132861822

Question - In order to "sell" your current and future projects, you will need to perform basic cost-benefit analyses. If you would like for partial credit to be considered, please show your work where necessary.

a) Calculate the net present value of a software update project which requires an initial investment of $900,000 (Year 0) and is expected to generate cash inflow of $500,000 each year for years 1-4. Assume that the salvage value of the project is zero. The target rate of return is 4% per annum. Be sure to use time adjustments.

b) During which year will the project achieve its payback period (accounting for time adjustments)?

c) What is the cost-benefit ratio?

Reference no: EM132861822

Questions Cloud

What is experience with social change : Describe your personal experience in defining social needs for change either progressively or in degeneration (social worsening) as a professional in community.
Explain the four perspectives of the balance scorecard : Analyze changes in operating income to evaluate success of a strategy. Explain the four perspectives of the balance scorecard
How is lean in healthcare the same or different : How is LEAN in healthcare the same or different than the application in other industries, e.g., manufacturing or commercial aviation?
Identify example of social change initiative promote progres : Drawing on Internet sources, identify one example of social change initiative promoting progress and one example of degeneration that can occur.
Calculate the net present value of a software update project : Calculate the net present value of a software update project which requires an initial investment of $900,000 (Year 0)
How do feel recommendations will be viewed : What will that involve? As you consider their HR policies, how will you ensure they are effectively aligned with what you see as the company's goals?
How do feel recommendations will be viewed : What will that involve? As you consider their HR policies, how will you ensure they are effectively aligned with what you see as the company's goals?
What effect does the sale have on the assets : What effect (if any) does the sale on 2/1/20 have on the assets, liabilities, and equity of the bank that purchases the receivables
How to make diversity training more effective : We have explored how to make diversity training more effective. What have been your experiences or the experiences of a peer or relative in diversity training?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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