Determine the net present value

Assignment Help Cost Accounting
Reference no: EM13342372

A $550,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:

Year             net cash flow

1                  300000

2                   280000

3                   208000

4                   180000

the minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636 respectively.

Determine the net present value.?

 

Reference no: EM13342372

Questions Cloud

Calculate the fractional increase in radiant energy : A lamp is designed to operate at a temperature of 3100K. what will be the fractional increase in radiant energy
Determine the average rate of return on investment : The company's minimum desired rate of return for net present value analysis is 15%. The present value of $1 at compound interest of 15% for 1, 2, 3, and 4 years is .870, .756, .658, and .572, respectively.
Determine the unknown wavelength : Two parallel slits are illuminated by light composed of two wavelengths. One wavelength is ?A = 630nm. The other wavelength is ?B and is unknown. What is the unknown wavelength
How to determine the present value index : The net present value has been computed for Proposals P and Q. Relevant data are as follows.
Determine the net present value : A $550,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows.
What is the mass of the bug : A thin uniform rod has a length of 0.520m and is rotating in a circle on a frictionless table. The axis of rotation is perpendicular to the length of the rod at one end and is stationary. What is the mass of the bug
How to find relative extrema at the indicated interval : How to find relative extrema at the indicated interval of the following functions and how to sketch it?
What is the power output of the source : A point source of sound waves emits sound uniformly in all directions. What is the power output of the source
Determine the present value index for each proposal : Determine the present value index for each proposal. Round your answers to two decimal places.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Advise him citing all relevant legal authority

One from United Trucks Pty Ltd requiring him to cease the operations of Sunshine Trucks Ltd in Queensland, the other from Grasping Bank Ltd threatening to sue him for $ 100 000. Advise him, citing all relevant legal authority.

  Determine sarahs deductible transportation expense

Determine Sarah's deductible transportation expense, using the actual expense method.

  Project briefing for the bishop company

Project briefing for the Bishop Company - Extend your existing spreadsheet by preparing an income statement, break even and operating leverage calculations for the new January 2011 data.

  Find the total variance from the flex

Ranger Company produces men's ties. Budgeted and actual costs for March - Find the total variance from the flex

  What will be the company''s dividend payout ratio

Redwood Systems and forecasting company's income- What will be the company's dividend payout ratio

  Identify two control procedures

Move document-Warehouse employees and Shipping employees should sign picking ticket to document transfer of inventory from the Warehouse to the Shipping department

  Testing and evaluation of internal control

Why is a code of conduct important? What should it contain and in the long run, many agencies will adopt an automated tool to assist in the documentation, testing and evaluation of internal control. Why is that?

  Find the interest expense for the first year

Find the interest expense for the first year and evaluate the interest expense for the second year?

  What are the profit variance and revenue variance

What are the profit variance, revenue variance, and cost variance and consider the revenue variance. What is the component volume variance? The price variance and break down the cost variance into volume and management components.

  Find the rate of annual depreciation

The total cost of a fleet of lorries is $ 180,00 and theresidual value after five years is $20,00. Using the diminishing balance method find the rate of annualdepreciation?

  Would the proposal create a second class of stock

The agreement also provide that if an audit adjustment is made to items reported on the schedule K-1, Bushong can make a discretionary distribution to handle the increased taxes resulting from the adjustment.

  Compute the partnerships ordinary income

Compute the partnership's ordinary income and separately stated items and show Mark's and Pamela's shares of the items in Part a.

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