User Account

All Pages

Compute for the annual net cash inflow

Assignment Help Managerial Accounting
Reference no: EM132633141

Learner company is considering a project that would have an eight-year life and require a 2,400,000 investment in equipment. At the end of 8 years, the project would terminate and the equipment would have no salvage value.

The project would provide net operating income each year as follows:

Sales 3,000,000

Variable expenses 1,800,000

Contribution margin 1,200,000

Fixed expenses:

Advertising, salaries & other out of

Pocket costs 700,000

Depreciation 300,000 1,000,000

Net Operating Income 200,000

The company's discount rate is 12%.

Problem 1: Compute for the following:

a. Annual net cash inflow

b. NPV

c. Payback Period

d. ARR

Reference no: EM132633141

Questions Cloud

Positive communication and positive meaning : Identify and discuss specific things you could do to create a positive climate, positive relationships, positive communication, and positive meaning?
Danger of science denial : In the video 'the Danger of science Denial' why Does he refuses to leave people alone why does he feel compelled to tell people
How much profit do think a local coffee shop makes : What is the end result if a company fails to include ALL costs in their accounting system? What is the end result if a company over estimates its total costs?
Explain why a break in a growth plate is worse : Which structure in the basic bone; central canal, Canaliculi, osteocytest and lamella is responsible for creating bone?
Compute for the annual net cash inflow : Compute for the Annual net cash inflow. Learner company is considering a project that would have an eight-year life and require a 2,400,000
Should be accept for abc co : Current capacity is for 15,000 units per month. It has got a special order from an NGO for a sales price of Rs. 50 per unit. Should they accept?
Policy pioneer presentation : Student will develop a presentation of a policy pioneer assigned to them. Details will include a brief biography of the pioneer, policies and services created
Sympathetic and parasympathetic nervous systems : Explain the difference between sympathetic and parasympathetic nervous systems.
Information-Processing : You have been assigned by Analyzing Children Cognitive Development Pre-Activity to one theoretical perspective of cognitive development: Information-Processing

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Find how much are equivalent units for materials under fifo

20% completed to conversion costs, and 70% completed to materials cost. How much are the equivalent units for materials under the FIFO method?

  Explain the process would use to make a master budget

Explain the process it would use to make a master budget. How would the budget process for the service company differ from a manufacturing company? Be specific

  Calculate the level of ticket sales for each price

Calculate the level of ticket sales for each price, at which the company would be indifferent as between the fixed and percentage fee alternative.

  What are estimated cash receipts from accounts receivable

Estimated provision for bad debts in May for credit sales in May are $7,000. What are the estimated cash receipts from accounts receivable collections in May?

  Suggest two financial performance measures

Suggest two financial performance measures that would be useful in evaluating the performance of department managers at Nadaire Department Stores.

  What forecasting model is called

Which the forecasted event is made is the independent variables, which are the possible causes of the dependent variable. What the forecasting model is called

  Case studythorn ltd produces and sells three products - x y

case studythorn ltd produces and sells three products - x y and z. relevant information is given below.nbspnbspproduct

  What is the annual decrease or increase in occupancy

What is the annual decrease or increase in occupancy % at breakeven in 2012 over 2011 (assume that there are 365 days in a year and there is no change)

  What is the net amount of cash actually paid to employees

What is total payroll-related costs as a percentage of total wages and salaries expense. What is the net amount of cash actually paid to employees

  Find what was the sales volume variance for february

Find What was the sales volume variance for February? Alaska Company expressed the total expenses (Y) component of its master budget for February.

  Distinguish between an ideal standard and a normal standard

Distinguish between an ideal standard and a normal standard. What factors should be considered in setting (a) the direct materials price standard and (b) the direct materials quantity standard?

  Prepare a horizontal analysis of deltas property

Briefly outline Delta Airlines company's history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment.

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