User Account

All Pages

Calculate the net present value of three buildings

Assignment Help Financial Accounting
Reference no: EM132643503

Marin Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in Western Canada. In order to do so, Marin has decided to locate a new factory in Kelowna, B.C. Marin will either buy or lease a site, depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings.

Building A: Purchase for a cash price of $601,000, useful life 25 years.

Building B: Lease for 25 years with annual lease payments of $71,000 being made at the beginning of the year.

Building C: Purchase for $651,000 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $6,600. Rental payments will be received at the end of each year. Marin Inc. has no aversion to being a landlord.

Question 1: Calculate the net present value of three buildings, assuming a 10% cost of funds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 0 decimal places, e.g. 5,275.)

Reference no: EM132643503

Questions Cloud

Certified management accountant certification : What types of accounting certification exist. In particular research the Certified Public Accountant (CPA) and Certified Management Accountant certification
Describe the effect on the financial statements : Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded revenue and (b) unrecorded expense
What total amount should be reported as cash at year-end : What total amount should be reported as "cash" at year-end? At year-end, Myra Company reported cash and cash equivalents which comprised
Describe programming features available in r : Compare the statistical feature of R to its programming features. In a table format, describe the programming features available in R,
Calculate the net present value of three buildings : Calculate the net present value of three buildings, assuming a 10% cost of funds. (For calculation purposes, use 5 decimal places as displayed)
Design and implement a relational database : Design and implement a relational database using a database management system and Utilise a query language tools and techniques to obtain data and information
Determine the best financing for the purchase : Determine the best financing for the purchase of a new piece of equipment. The vendor is offering repayment options of $10,200 at the end of each year
Create the t-accounts for each account : Create the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance.
How systematic and unsystematic risks affect risk planning : Explain how systematic and unsystematic risks affect risk planning? Name 3 or more systematic or unsystematic risks a company might face.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Should human capital be included in financial balance sheet

Should human capital be included in the financial balance sheet? And are any perspectives that contradict view? why human capital is related to the financial

  Calculate the profit and loss for a given demand

Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $160,000. Build a spreads..

  Use the above adjusted trial balance

Use the above adjusted trial balance to prepare Webb Trucking Companys classified balance sheet as of December 31, 2011.

  How much is the non-current liabilities

If the company's working capital of $50,000 did not change and the ending shareholders' equity is $500,000, how much is the non-current liabilities?

  Interest and ordinary dividends

Dan Chan (SSN 334-63-3456) receives various Form 1099s during the year. He has no foreign accounts or trusts. From the information provided above, prepare the Dan’s Schedule B (Form 1040), Interest and Ordinary Dividends.

  Evaluate the statement of cash flows

Evaluate the statement of cash flows for the Decker Uniform Co.

  Determine the gross profit to be reported on the income

Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2006, using the periodic inventory method.

  Calculate the degree of operating leverage of the firm

Calculate the degree of operating leverage of the firm if the selling price is Rs. 400 per unit and variable cost is Rs. 75 unit.

  What is the cash flow generated each year

What is the cash flow generated each year and why is this automobile depreciated in 6 years - Using the present value factor table, what is the net present

  How should sable classify the lease in its accounting record

How should Sable classify the lease in its accounting records and Provide the journal entries that Sable should record to

  Deducted from the balance per bank statement

What dollar amount should be deducted from the balance per bank statement?What dollar amount should be deducted from the balance per book?Which adjustment will you need to make to company books?

  What existing provisions in the act do believe

What other provisions could have been included in the Act to strengthen the responsible stewardship and integrity of the accounting profession?

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