Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Corpcon (Pty) Ltd wishes to expand and modernise its facilities. The installed cost of a proposed computer-controlled automatic-feed roaster will be R130 000. The new roaster will be depreciated over a 5-year straight line period The company has a chance to sell its 4-year-old roaster for R35 000. The existing roaster originally cost R60 000 and was being depreciated over a 6-year straight-line period. Sales revenue from expansion will amount to R 70 000 per year and operating expenses and other costs (including depreciation) will amount to 29% of sales. Additional information Issued shares: 10 000 000 ordinary shares Debt: R200m Before tax borrowing cost: 12% Share price: R24.00 Latest dividends: R2.40 Expected growth rate: 5% Tax rate: 28%.
Required -
1. Calculate the weighted average cost of capital (WACC.)
2. Calculate the net present value (NPV), internal rate of return (IRR) and payback period (PB) of the roaster.
3. State on the basis of NPV and IRR, whether the company should expand and modernise its facilities.
In its statement of financial position on December 31, 2021, what is the carrying amount of notes payable to be presented as current liability by Smash Company?
Identify the decision variables for the MBI Corporation problem. Identify the objective for the above problem, and write a formula for it. Identify the constraints for the above problem and write the formula for each
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO
Relatively recent revisions to the Code have modified the tax treatment of dividends. What dividends are, as defined by the Code
northwood company manufactures basketballs. the company has a ball that sells for 42. at present the ball is
Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 9 percent, paid annually. The tax rate is 40 percent.
Using the weighted-average method, compute the direct materials cost and conversion cost per equivalent unit and assign April's costs to the department output
reate a data flow diagram of the current system. - Create a system flowchart of the existing system.- . Identify the internal control weaknesses in the system.
On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000. Provide journal entries to account for the revaluation
Pass the necessary consolidation entry to eliminate the subsidiary by the parent company. Determine the amount of goodwill arising out
Compute How would difference in funding sources impact the type of reporting undertaken and the expertise of the local accounting profession?
Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable income from the partnership since she purchased the interest has been $100,000, and Elaine has received $75,000 in cash distributions from the partnership
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd