Considering capital budgeting project

Assignment Help Financial Accounting
Reference no: EM131216789

XYZ Corporation is considering a capital budgeting project that would require an initial investment of $440,000 and working capital of $32,000. The investment would generate annual cash inflows of $147,000 for the life of the project. At the end of the project, equipment that had been used in the project could be sold for $11,000. The company's discount rate is 7%.

Calculate the $ NPV of this project.

Reference no: EM131216789

Questions Cloud

Calibrating the machine for operation : Josh paid his brother, a mechanic, $5,300 to install a robotic machine for Josh’s business. The amount he paid to his brother is comparable to what he would have paid to an unrelated party to do the same work. Once the installation was completed by h..
Flexible budget cost formula for indirect materials : Muntjac Corporation's flexible budget cost formula for indirect materials, a variable cost, is $1.25 per unit of output. Assume that actual units produced equals standard units produced. If the company's performance report for last month shows a $500..
Developed cash flow estimates as pessimistic : For two mutually exclusive investments, the management of the company has developed cash flow estimates as pessimistic, most likely, and optimistic. Both projects have a life of 15 years. Cost of capital = 14 percent. Which project is more risky? Rec..
How is present value related to the concept of a liability : How is present value related to the concept of a liability? Southeast Airlines Inc. awards members of its Flightline program a second ticket at half price, valid for 2 years anywhere on its flight system, when a full-price ticket is purchased. How wo..
Considering capital budgeting project : XYZ Corporation is considering a capital budgeting project that would require an initial investment of $440,000 and working capital of $32,000. The investment would generate annual cash inflows of $147,000 for the life of the project. Calculate the $..
Dividing partnership net income : Dividing Partnership Net Income Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Jack of $45,000. Interest of 10% on each partner's capital balance on January 1. Any remaining net income divid..
Compute the noncontrolling interest : Dell Company acquires 80% of Kemers Company for $500,000 on January 1, 2010. Kemers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each..
Preferred stock is fully participating and cumulative : Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling fo..
When parent acquies control of subsidiary over time : Jared owns 50% of an S corporation's stock. His basis in the stock was $50,000 on January 1, 2014. On February 1, 2014, the S corporation borrowed $30,000 from Jared, signing a formal note. What are Jared's bases in his stock and his note at the end ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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