User Account

All Pages

Determine the value of the investment

Assignment Help Financial Accounting
Reference no: EM132960648

Question - Futuretech Ltd. recently completed a project for a client which yielded a profit of R1 000 000. The company now has the opportunity to either invest the profits from the project or to take on a new project. The company can either undertake the development of new software for which it can sign a contract now to sell it for R1 500 000 in 3 years' time. Alternatively, it can invest the money a money market account where it can earn 15% per year. Determine the value of the investment alternative and choose the most correct option below.

A. R1000 000; it would be better to invest the proceeds.

B. R1500 000, it would be better to develop the software.

C. R1520 875, it would be better to invest the profits.

D. R1594 874, it would be better to develop the software.

Reference no: EM132960648

Questions Cloud

What the current market price of the company bonds : Company CBA issued 10-year bonds four years ago with a coupon rate of 11.01 percent, paid semi-annually. What the current market price of the company bonds
Which is not a characteristic of an effective information : Which is not a characteristic of an effective information? What is the correct data hierarchy? Which is not an accountant's role in information systems?
Compute the unearned interest income : ABC Co. sold an equipment costing P1,200,000 to one of its constituents for P1,400,000 last Jan 1, 2021. Compute the unearned interest income
Sunny delight case study assignment : Sunny Delight Case Study - Sunny Delight Improves Profitability with a Self-Service BI Solution - Answer all three questions after the case study clearly
Determine the value of the investment : Alternatively, it can invest the money a money market account where it can earn 15% per year. Determine the value of the investment
Which would be associated with the human resource process : Accounting information systems have five basic elements. Which of the following would be associated with the human resource process?
Compute VAT : The retailers incur a cost of @ 2000 for maintenance and salary of persons of the sales center and charge a cost plus 10% margin. Compute VAT
Which mcc system is therefore best described as : Which MCC's system is therefore best described as? Missouri Can Corporation (MCC) manufactures and sells a variety of can types
Are there any other recommendations that can be made : What appropriate recommendations can be made for the GoPro, Inc considering their financial analysis? Are there any other recommendations that can be made

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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