User Account

All Pages

Determine the internal rate of return on the investment

Assignment Help Accounting Basics
Reference no: EM132052533

Question - An investment costing $200,000 will reduce operating costs by $35,000 per year for 12 years. The required rate of return is 18%.

1) Determine the internal rate of return on the investment, ignore taxes.

2) Determine the net present value of the investment, ignore taxes.

3) Should the investment be undertaken? Why?

4) Show all calculations and support your investment decision with calculations.

Reference no: EM132052533

Questions Cloud

What amount would be reported as the total payroll costs : Assuming Lightning Electronics must also pay $340 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs
Conventional roles of the 21st century : How do women or men today have to deal with conventional roles of the 21st century?
Prepare a production cost report using the fifo method : DowntonTractor Company manufactures small tractors on an assembly-line basis. Prepare a production cost report using the FIFO method
Placement of different sinners in hell : What sins do people today regard as the least serious? As the most serious? Why do you think so?
Determine the internal rate of return on the investment : An investment costing $200,000 will reduce operating costs by $35,000 per year for 12 years. Determine the internal rate of return on the investment
What do you think motivated jack kerouac : What do you think motivated Jack Kerouac (Sal Paradise in the book) to go "on the road."
What does irving satirize in the new america : What does Irving satirize in the new America to which Rip returns? What are the implications, for the story, of the references to historical events
Prepare journal entry to record the change in depreciation : Plant assets, acquired on January 2, 2012, had an original cost of $2,400,000, Prepare the journal entry to record the change in depreciation method in 2015
What make the story an american one : Edgar A. Poe 's "The Purloined Letter" set the story in Paris and is mostly related in a series of conversations. What make the story an American one?

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