Compute the project profitability index

Assignment Help Cost Accounting
Reference no: EM13509152

Information on four investment proposals at Tampa Corp. is given below:


A

B

C

D

Investment required

$85,000

$200,000

$90,000

$170,000

Present value of cash flows

119,000

250,000

135,000

221,000

Net present value

34,000

50,000

45,000

51,000

Life of the project

5 year

7 year

6 year

6 year

Required: Compute the project profitability index for each proposal and rank the proposals in terms of preference.

 

Reference no: EM13509152

Questions Cloud

If you cannot capture some constraints explain why : Consider the university database from Exercise 2.3 and the ER dia-gram you designed. Write SQL statements to create the corresponding relations and capture as many of the constraints as possible. If you cannot capture some constraints, explain why.
Compute the fixed portion of the predetermined : Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed overhead budget and volume variances.
Calculate the speed of the cylinders center of mass : A solid cylinder of mass M = 2.59 kg is released from rest at the top of an incline of height H= 1.99 m and rolls without slipping to the bottom. Calculate the speed of the cylinder's center of mass at the bottom of the ramp
What is the residual income for the year : Management has set a minimum required rate of return on average operating assets of 25%. What is the residual income for the year?
Compute the project profitability index : Compute the project profitability index for each proposal and rank the proposals in terms of preference.
What is the angular speed of the centrifuge : An ultracentrifuge having a diameter of 16.3 cm produces an extremely large acceleration of 4.41E+5 m/s2. What is the angular speed of the centrifuge
Define which runner wins and by how much : Two runners are racing to a turn-around point 6 km away and then back to the starting point. Which runner wins and by how much
Compute the simple rate of return for 2009 : The Marcus Corporation purchased a piece of new equipment in January 2009 for $120,000. The equipment was depreciated using the straight line method over an 8 year life without a salvage value.
What are the dimensions of viscosity : The drag force acting on a sphere moving through a liquid like water is given by F=6?vr? where F is the drag force, v is velocity of the sphere, r is radius of the sphere, What are the dimensions of viscosity

Reviews

Write a Review

Cost Accounting Questions & Answers

  Calculate elaine current basic in her partnership interest

Elaine's original basic in the hornbeam partnership was 25,000. her share of the taxable income from the partnership since she purchase the interest has been 100,000 and Elaine has received 75000 in cash distribution from the partnership.

  Smith-jones company a us based corporation owns 100 percent

smith-jones company a us based corporation owns 100 percent of joal sa located in guadalajara mexico. joal manufactures

  How much was manufacturing overhead

Equivalent units for conversion costs for the month in the first processing department - cost per equivalent unit for materials for the month in the first processing department is closest to

  Compute the february conversion costs

Compute the February conversion costs in the Filtration Department and the Filtration Department completely processed 150,000 liters in February.

  Determine the total fixed costs

Determine the total fixed costs and the total variable costs for 2014 and determine for 2014 (a) the unit variable cost and (b) the unit contribution margin

  Identify accounting policies

Write a research paper describing the issues surrounding the company and describe any company policy or policies in relationship to their impact on public audits/accounting.

  Product costing and inventory valuation

Explain how the use of absorption costing can encourage managers to engage in behaviour that is harmful to the organisation.

  Describe how you would deal with his ethical dilemma

He indicated to John that it was a close call between him and Patty and that he wanted to let John know personally about the decision before it was announced officially - What should John do? Describe how you would deal with his ethical dilemma (co..

  Q1 jones company manufactures widgetsnbsp old ham company

q1. jones company manufactures widgets.nbsp old ham company has approached jones with a proposal to sell the company

  Compute the accounts receivable and inventory turnover ratio

Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc: 20X5 20X4Net credit sales $832,000 $760,000 Cost of goods sold 530,000 400,000 Cash, Dec. 31 125,000 110,000Average Accounts receivable 205,000 156,000

  Explain the logic of your classification

It is time for the annual budgeting process at your call center company. To kick-off the process, all the department managers and the plant accountant are meeting to discuss the budgeting process.

  Allocation of cost to cost of goods sold and ending inventor

How do the Weighted Average and FIFO methods differ in the allocation of cost to Cost of Goods Sold and Ending Inventory?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd