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 - Parker Inc., is considering two projects, each project would have a ten-year life and would require a $300,000 investment in equipment. At the end of ten years, the projects would terminate and the equipment would have no salvage value. The project would provide net income each year as follows:
Project 1
Project 2
Sales
$400,000
$350,000
Less variable expenses
200,000
150,000
Contribution margin
100,000
Less fixed expenses
170,000
75,000
Net income
$30,000
$25,000
All of the above items, except for depreciation of $30,000 a year, represent cash flows. The depreciation is included in the fixed expenses. The company's required rate of return is 12%.
A. Compute the project's net present value.
B. Compute the project's payback period.
C. Compute the project's accounting rate of return.
D. Briefly outline TWO (2) advantages and TWO (2) disadvantages of using the payback period as a method of appraising capital projects.
Someone offers to sell to you a financial contract that will pay $150 at the end of each of the next five years, what rate of return are they offering
Please give us an example of a transaction where there are two increases. Note that you will still need to have at least one debit and one credit. Indicate which account will be debited and which will be credited.
The president of the company has severely criticized the manager of the Shovel Division for its dismal 3.8% ROI, “which doesn’t come close to the firm’s 12% cost of capital.” The manager of Hoe Division also was criticized for an 11.7% ROI, “which is..
Determine the selling price of the bond. ABC Company issued $600,000, 10%, 10-year bonds on January 1, 2010 when the market interest rate was 8%.
Explain whether is possible for the risk premium to be negative before an investment is undertaken and whether the risk premium can be negative after the fact?
If these costs are budgeted at $38,000, what would be the amount of cost allocated to General Administration under the direct method?
What is the current share price for the stock? Kingston, Inc., just paid a dividend of $3.40 on its stock. The growth rate in dividends is expected
Companies already do so much reporting, Discuss the concept of integrated reporting and what it can provide beyond existing reporting.
Find the NPV statistic for Project Y. Explain whether or not the firm should accept or reject the project with the cash flows shown in the chart
Define The bonds and its advantages and disadvantage. Compare between bonds and shares. Explain the financial leverage. Provide the example.
Find the 1.) PBP, 2.) ARR, with annual depreciation of 14,000, 3.) NPV, and 4.) IRR. 5.) Should the equipment be bought? Explain.
ACC5502 Accounting and Financial Management Assignment. Calculate the payback period of the project. Calculate the Internal Rate of Return (IRR) of the project
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