User Account

All Pages

Determine the present value index for each proposal

Assignment Help Accounting Basics
Reference no: EM133168187

Question - Sweet Tooth Candy Company has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows:

 

Carolina

Jersey

Total present value of net cash flow

$310,660

$388,310

Less amount to be invested

317,000

377,000

Net present value

$(6,340)

$11,310

Required -

a. Determine the present value index for each proposal.

b. Which location does your analysis support?

Reference no: EM133168187

Questions Cloud

Calculate tammy total return on this investment : During the 12 months she owned the stock, she received $167 in dividends. Calculate Tammy's total return on this investment
Compute the fcf in years : Compute the FCF in years 1 through 9 of producing the chains. In years 1 to 9 there are no capital expenditures or change in net working capital
Calculate payback period for proposed equipment purchase : Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year
What procedures could angelo perform to discover : What procedures could Angelo perform to discover if any other law firms have performed work for Acme during the fiscal year
Determine the present value index for each proposal : Sweet Tooth Candy Company has computed the net present value for capital expenditure at two locations. Determine the present value index for each proposal
Entrepreneur developing marketing strategy : You will take on the role of an entrepreneur developing a marketing strategy for a new product to be introduced into a new market.
What are some examples of land improvements : What are some examples of land improvements? What are the similarities and differences between the terms (a) depreciation, (b) depletion, and (c) amortization
How much interest will chandrak earn : The deposit earns a simple interest rate of 6%. If the term deposit will mature on November 10th how much interest will Chandrak earn
Targeted audiences perceptions about the product : The social context of the ad. How does the cultural context of the advertisement affect the targeted audiences' perceptions about the product?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the effect of revenue sources on financial reporting

How are the hospital's revenues and expenses grouped for planning and control?

  Thousands of stockholders lost millions of dollars

After the scandal was uncovered, thousands of stockholders lost millions of dollars as Enron share values plummeted."

  Balance in the allowance for doubtful accounts

Flip determined that the balance in the Allowance for Doubtful Accounts should be $2,650 after an aging of A/R schedule was completed.

  Prepare a contribution format income statement for may

Management is anxious to assess the profitability of the new camp cot during the month of May. Prepare a contribution format income statement for May

  How much management have to raise from external activities

How much will management have to raise from external activities (shareholders and lenders) to proceed with an $800,000 investment in non-current assets

  How to calculate minimum contract price

How to calculate minimum contract price that the company is willing to accept for the project? The contract price will pay at the end of project

  What is the post payback profitability

Mr F plans to buy new equipments worth 1,000,000 in order to improve efficiency of his manufacturing business. What is the post payback profitability

  The trial balance of lagrace company includes

The trial balance of LaGrace Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate

  Compute cost of ending inventory and the cost of goods sold

Compute the cost of ending inventory and the cost of goods sold using the specific identification method

  Merchandiser to compute net income.

Use the following information (in alphabetical order) from a service company and from a merchandiser to compute net income. For the merchandiser, also compute gross profit, the goods available for sale, and the cost of goods sold.

  Prepare a memorandum for the owners of begood

Prepare a memorandum for the owners/management of BeGood.The value of an AIS and how it can be used to facilitate growth at BeGood

  Observations of commuter traffic

P-value. Have harsher penalties and ad campaigns increased seat-belt use among drivers and passengers? Observations of commuter traffic have failed to find evidence of a significant change compared with three years ago. Explain what the study's P-..

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