User Account

All Pages

Compute the building net present value

Assignment Help Accounting Basics
Reference no: EM131760061

Question: Logan, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Logan currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Logan $48,000 per year. the building will cost Logan $400,000. Logan will depreciate the building for 20 years. At the end of 20 years, the building will have a $125,000 salvage value. Braxton's required rate of return is 10%. the building's net present value is

a. $41, 347

b. $27, 228

c. $427, 228

d. $960,000

Reference no: EM131760061

Questions Cloud

In what ways is this different from the way you listen now : Conscious listening is necessary to achieve improved relationships at work and home. How do we listen?
What new features are enabled by rerams memories : What new features are enabled by ReRAMsmemories? More broadly, describe what the two technologies (of the three above ) that you've picked are?
Capital projects which they are going to implement : Every year, one of the key decisions in each company is to select the capital projects which they are going to implement and which ones they are going to reject
Rate for evaluating investment opportunities : If Marriot used a single corporate hurdle (discount) rate for evaluating investment opportunities
Compute the building net present value : Logan, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Logan currently warehouses its inventory.
What is the amount of her monthly payment : a) What is the amount of her monthly payment if she borrows for 4 years?
Organization to be ready to address these external trends : What can HR do to respond proactively to the changes within an organization to be ready to address these external trends.
Ownership of common stock : Joe Johnson received 100 shares of Delta Inc. preferred as a tax-free stock dividend because of his ownership of its common stock.
Discuss whether cam has a discrimination claim : Discuss whether Cam has a discrimination claim and provide the basis for your position?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Bond market price of callaghan motors

Callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent

  In its 2010 annual report super-mart reported inventory of

in its 2010 annual report super-mart reported inventory of 39038 million on january 31 2010 and 40753 million on

  Observable artifacts, espoused values, and enacted values

Observable artifacts, espoused values, and enacted values analysis discovers a great measure of units to the look which unite to establish total organizational culture. It mentions the broad culture inside a company or organization, and is frequen..

  What is the profit or loss associated with copper

Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Copper

  Calculate the flexible budget would show fixed costs

If National actually produced 2,000 units, the flexible budget would show fixed costs amounting to

  On february 1 2010 the balance of the retained earnings

on february 1 2010 the balance of the retained earnings account of blue power corporation was 630000. revenues for

  Observing physical inventory

Describe some considerations for observing physical inventory. Explain a fraud scheme that may be used for inventory.

  Find the npv and pi of an annuity that pays 500 per year

find the npv and pi of an annuity that pays 500 per year for eight years and costs 2500. assume a discount rate of 6

  A total of 30000 units were sold last year the contribution

a total of 30000 units were sold last year. the contribution margin per unit was 2 and fixed expenses totaled 20000 for

  How was the net income affected by the 811000 write off

a recent annual report for target contained the following info at the end of the fiscal year ar year 2 9094000

  Determining retained earnings and net income

Problem - Determining Retained Earnings and Net Income Using the Balance Sheet. Compute the amount of retained earnings at the end of 2013

  Willkom corporation bought 100 percent of szabo inc on

willkom corporation bought 100 percent of szabo inc. on january 1 2009 at a price in excess of the subsidiarys fair

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