User Account

All Pages

Calculate the npv of the purchase

Assignment Help Accounting Basics
Reference no: EM133093045

Question - Telus Brewery Inc. is purchasing a new asset of $225,000 and is expected to have useful life for five years with no salvage value. The company will use a 30% CCA rate as per the appropriate classification of the asset. The new asset will save $90,000 annually before taxes. Using the tax shield approach, calculate the NPV of the purchase. The company's required rate of return is 11%, with a tax rate of 30%.

Reference no: EM133093045

Questions Cloud

Explain the standardized across nations : Is product liability a legal concept that is standardized across nations? Intellectual property? Provide examples.
How much money does she need to have when she retires : If she retires 10 years from now and interest is 6.5% compounded monthly, how much money does she need to have when she retires
Employee training session on stress management : Your first task is to develop a plan for an employee training session on stress management.
Difference between major and minor : Write the letter of the correct answer in the space provided. Choices may be used more than once; you will not use all the choices listed.
Calculate the npv of the purchase : Using the tax shield approach, calculate the NPV of the purchase. The company's required rate of return is 11%, with a tax rate of 30%
What are hi-tech net cash flows from operating activities : Hi-Tech, Inc.. reports net income of $70 million. Included in that number are depreciation expense of $6 million. What are Hi-Tech net cash flows
Cost sheet for employee retention strategy : How do you create a cost sheet for employee retention strategy?
Evaluate the marketing mix of an organisation : This should be presented as an article. You will be expected to draw upon academic sources as well as research on your chosen organization.
Consolidating gains and producing more change : Develop a strategy that illustrates how you would address each of the eight stages of change. Consolidating gains and producing more change.

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