Define the capital budgeting

Reference no: EM131477399

Question: CAPITAL BUDGETING

X Company is exmanining two mutually exclusive proposals for new capital investment.The data on the proposals are as follows

A B
($) ($)

Net cash outlay 40000          50000
Salvage value Nil    Nil
Estimated life    4 years        4 years
Depricistion SLM SLM
Income Tax rate                     50%           50%
Cut off rate for appraisal          10%           10%
EBIT
Ist Year                             12000          14000
2nd Year                            14000          16000
3rd Year 16000          18000
4th Year                             22000          22000
5th Year -       20000

You are asked to advise which proposal would be financially preferable.

Reference no: EM131477399

Questions Cloud

What ethical issues arise from this investigative practice : Discuss the ways in which the understanding of biology/genetics has affected and continues to affect the development of ethical laws.

Representative work of art or architecture : Select two different civilizations and then select a representative work of art or architecture for each:

The history and future of the field of psychology : As you consider your personal narrative, what tools and insights can you apply from the course to make positive change in your life?

Political or economic histories of india : What connections can you make between the political or economic histories of India, China, Thailand, Russia, Nigeria and the existence of modern slavery today?

Define the capital budgeting : X Company is exmanining two mutually exclusive proposals for new capital investment.The data on the proposals are as follows.

As you conceptualize your approach to mediation : Utilizing your course materials and readings from this week, highlight areas of interest that you would explore with the parties in conflict.

Is marty an australian resident for tax purposes explain : LAWS20060 INDIVIDUAL ASSIGNMENT. Australian citizen and tech genius, Marty Goodson, set up "Planks Pty Ltd", Is Marty an Australian resident for tax purposes

How the realization of beliefs influence the consequences : How might you structure a behavioral approach to working with Ethan in a way that directly addresses his problematic behaviors?

What was the total price for the hardware configuration : What was the total price for the hardware configuration you chose? What manufacture did you choose for your replacement computer?

User Account

All Pages