User Account

All Pages

Determine the amount that polaris invested in capital assets

Assignment Help Accounting Basics
Reference no: EM13863099

Case Study:

Assume Polaris invested $2.12 million to expand its manufacturing capacity. Assume that these projects have a ten-year life and that management requires a 10% internal rate of return on these assets.

1. What is the amount of annual cash flows that Polaris must earn from these projects to have a 10% internal rate of return? (Hint: Identify the ten-period, 10% factor from the present value of an annuity table, and then divide $2.12 million by the factor to get the annual required cash flows.)

2. Assess Polaris's most recent annual financial statements, from its website (polaris.com) or the SEC's website (sec.gov).

o a. Determine the amount that Polaris invested in capital assets for that year. (Hint: Refer to the statement of cash flows.)

o b. Assume a ten-year life and a 10% internal rate of return. What is the amount of cash flows that Polaris must earn on these new projects?

Reference no: EM13863099

Questions Cloud

Discuss some of the primary risks the company faces : Identify and discuss some of the primary risks the company faces in the near future and create a table showing the stock prices for the past five years
Determine the main characteristics of a variable interest : Determine the main characteristics of a variable interest entity (VIE)
Write a piece on your experience of approaching an adviser : You are to write a reflection piece on your experience of approaching an adviser and presenting your case study to him/her. A reflection piece is a written report of what you did, how you went about it, how successful you were?
What is the discount payback period of the cash-flow stream : What is the payback period (PP) of the given cash-flow stream? Interpolate to the nearest 0.1 year. What is the discount payback period, DPP((7%) of the given cash-flow stream
Determine the amount that polaris invested in capital assets : Determine the amount that Polaris invested in capital assets for that year
Find the distance from an endpoint of this median : The two sides of a triangle are 17 cm and 28 cm long, and the length of the median drawn to the third side is equal to 19.5 cm. Find the distance from an endpoint of this median to the longest side.
What is annual distribution cost of distribution network : What is the annual distribution cost of the current distribution network? Include transportation and inventory costs and how should Ellen structure distribution from suppliers to the store in Illinois? What annual saving can she expect
Explain the tendency of industrial clusters to break up : It is fairly common for an industrial cluster to break up and for production to move to locations with lower wage. Explain this tendency of industrial clusters to break up in terms of the theory of external economies.
Summary of relational databases : In 500 words or less, Summary of Relational Databases, Some rules for this assignment: Write everything in your own words. Don't use any quotes

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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