User Account

All Pages

Compute the cash payback period

Assignment Help Accounting Basics
Reference no: EM131624702

Question - Vilas Company is considering a capital investment of $191,400 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $16,990 and $49,050, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. (Refer the below table)

Compute the cash payback period.

Compute the annual rate of return on the proposed capital expenditure.

Reference no: EM131624702

Questions Cloud

Using the constant growth perpetuity formula : Using the constant growth perpetuity formula. what is this opportunity worth today?
Define the length of time of protection : The difference between an employee and an independent contractor and who normally would own any intellectual property rights
Return a company needs to earn to satisfy : Which of the following is the minimum return a company needs to earn to satisfy all its investors? A. NPV C. BASF 2015 B. RE D. WACC
Explain the common law liability exposure : Common Law Liability Exposure. Smith, CPA, is the auditor for Juniper Manufacturing Corporation, a nonpublic entity that has a June 30 fiscal year.
Compute the cash payback period : Vilas Company is considering a capital investment of $191,400 in additional productive facilities. Compute the cash payback period
How movie boy in stripped pajamas relates to theme abortion : Write 3-4 paragraphs describe how the movie "The boy in the stripped pajamas" relates to the theme abortion and the American holocaust.
What is the net cost of the call premium : If similar bonds are currently yielding 8% annually, what is the market value of the bond? What is the net cost of the call premium?
Will risk capital prevail under a foreseen parties standard : Common Law Liability Exposure. Risk Capital Limited, a Delaware corporation, was considering the purchase of a substantial investment in Florida Sunshine.
Discuss about the adolescence versus early adulthood : Compare and contrast cognitive development during adolescence versus early adulthood, evaluating whether and to what extent one or the other stage.

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