User Account

All Pages

Calculate the payback period for Investment A

Assignment Help Accounting Basics
Reference no: EM131588505

Question - Logan, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available:

 

Investment A

Investment B

Initial capital investment

$102,000

$150,000

Estimated useful life

10 years

10 years

Estimated residual value

0

$23,000

Estimated annual net cash inflow for 10 years

$20,000

$46,000

Required rate of return

10%

14%

Calculate the payback period for Investment A. (Round your answer to two decimal places.)

(a) 3.04 years

(b) 3.95 years

(c) 1.00 years

(d) 5.10 years

Reference no: EM131588505

Questions Cloud

Why does this health issue need to be addressed : Why does this health issue need to be addressed. Explain the proposed public health policy. Questions to consider
Processing arrays of objects : Stocks4U needs to develop an app for you to manage your stock purchases. You should be able to store a list of stock purchases, view the individual stocks
What is the relationship between uniformity and disclosure : what is the relationship between uniformity (both finite and rigid uniformity) and disclosure
How have these legislative policies informed apa identities : How have these laws contributed to the "abbreviated," "truncated" and "disjointed" development of APA communities in the U.S.?
Calculate the payback period for Investment A : Logan, Inc. is evaluating two possible investments in depreciable plant assets. Calculate the payback period for Investment A
Summarize the future communication needs of organization : Dallas Office Logical Design - Current. Summarize the future communication needs of the organization based on what you know from the scenario.
Sinking fund purposes is very different from refund call : A call for sinking fund purposes is very different from a refund call- a sinking fund call requires no call premium,
List two phonemes that differ in their type of excitation : It can be shown that vowel formant location varies while producing the following word list: "mat" - "met" - "mit" - "meat."
Company improve its customer service relations : What strategies does the company use to meet customer expectations? Based on what you learned in this lesson, how can the company improve its customer service.

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