User Account

All Pages

Calculate the npv and irr of the project

Assignment Help Financial Accounting
Reference no: EM132954250

The great tech company is considering replacing one of its machines with a more efficient one. The old machine has a book value of $60,000 and a remaining useful life of 5 years. It can sell the old machine now for $ 265,000. The old machine is being depreciated by 120,000 per year straight line. The new machine has a purchase price of $ 1,175,000 an estimated useful life and 5 years MACRS class life and salvage value of $145,000. Annual economic savings is $255,000 if new machine is installed. Taxes 35% and WACC is 12.

Problem a. Calculate the NPV and IRR of the project and make a decision on accepting the project and why?

Problem b. If expected life of existing machine decreased what effect does this have on the cash flow, discuss only? No calculations needed, just discuss.

Reference no: EM132954250

Questions Cloud

Find the retained earnings as of september : Henry Harsel Corporation, If Retained Earnings balance on September 30, 2018 was $57,860, determine the retained earnings as of September 1, 2018.
Planning financial management approaches : Reflect on your work when planning financial management approaches in collaboration with relevant stakeholders.
Bcg matrix and ie matix of coca cola company : Please develop SWOT matrix, SPACE matrix, BCG matrix and IE Matix of Coca Cola Company. Please describe restructuring and reengineering of coca cola company.
What was the bomb real return for the year : What was the bomb's real return for the year? The bond price was $945.74 at the beginning of the year and $977.92 at the end of the year.
Calculate the npv and irr of the project : If expected life of existing machine decreased what effect does this have on the cash flow, discuss only? No calculations needed, just discuss.
Steps of the ethical decision-making process : In answering this question, take a position as to whether or not it is ethical. Follow all steps of the ethical decision-making process taught in this course, a
Impact that the issue has on health care : Main issue in the article and the impact that the issue has on health care. Research current best practices in health care management for dealing with death
Analyse the external environment for a uae : Analyse the external environment for a UAE based HR consulting company applying the frameworks? Please give me the framework that could be used to analyse the e
What is the project npv and irr and decision and why : Century Contracting is thinking of opening a new warehouse, What is the project's NPV? IRR? What is your decision and why? Briefly discuss results.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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