User Account

All Pages

Determine internal rate of return by computing present value

Assignment Help Managerial Accounting
Reference no: EM132767721

Problem - Net present value method and internal rate of return method for a service company - Buckeye Healthcare Corp. is proposing to spend $186,725 on an eight-year project that has estimated net cash flows of $35,000 for each of the eight years.

Required -

a. Compute the net present value, using a rate of return of 12%.

b. Based on the analysis prepared in part (a), is the internal rate of return (1) more than 12%, (2) 12%, or (3) less than 12%? Explain.

c. Determine the internal rate of return by computing a present value factor for an annuity of $1.

Reference no: EM132767721

Questions Cloud

Determine the net present value of the film : The movie requires $90 million of advertising. Determine the net present value of the film as of the beginning of 20Y5 if the desired rate of return is 20%
Principles of microsoft windows security : Describe with some examples how you would use the principles of Microsoft windows security to manage your organizational network.
Analyze the compensation structure for google : You have been hired as the compensation and benefits manager for a company that has been in business less than a year, and its main competitor is Google.
How is health care cost defined and measured : How is health care cost defined and measured? How is health care accessibility defined and measured?
Determine internal rate of return by computing present value : Net present value method and internal rate of return method for a service company - Determine internal rate of return by computing present value
Protection of customer information : Discuss the issues organization's face with regards to the protection of its customer information.
How could you make sure that you were equally covering : Reflect on a time when you participated in a training or classroom experience where the material did not fit your learning style. As a training developer.
System development life cycle : Identify change team members who will help identify system need and specify their role and responsibilities.
Discuss the training theory and its primary tenets : Discuss the training theory and its primary tenets. Discuss two to three activities that you would build from this theory. For example, if you chose action.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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