User Account

All Pages

Determine whether muar berhad should accept or reject

Assignment Help Accounting Basics
Reference no: EM133126994

Question - Muar Berhad consists of several divisions, one of which is the Transportation Division. The company has decided to dispose of this division since it no longer fits the company's long-term strategy. An offer of RM9,000,000 has been received from a prospective buyer. If General retained the division, the company would operate the division for only nine years, after which the division would no longer be needed and would be sold for RM600,000. If the company retains the division, an immediate investment of RM500,000 would need to be made to update equipment to current standards. Annual net operating cash flows would be RM1,805,000 if the division is retained. The company's discount rate is 12%. Determine whether Muar Berhad should accept or reject the offer made by the potential buyer based on net present value method.

Reference no: EM133126994

Questions Cloud

Determine the journal entry to allocate net income : The remaining income or loss is to be divided equally. Assuming net income for the current year is $183,000, determine the journal entry to allocate net income
Limitations or weaknesses of a financial system of a country : Identify and elaborate on the limitations or weaknesses of a financial system of a country
Differences relative to managing operations : What are implications of these differences relative to managing operations? Provide relevant example from your own perspective to support your understanding
Differences relative to managing operations : What are the implications of these differences relative to managing operations?
Determine whether muar berhad should accept or reject : Determine whether Muar Berhad should accept or reject the offer made by the potential buyer based on net present value method
Compute the profit consequences of the change : Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust price? Compute the profit consequences of the change.
Find business outreach event involving : Find a business outreach event involving your selected company? How does their participation in the event align with their stance as a business in the community
Develop a risk response matrix : Develop a risk response matrix similar to this to outline how you would propose to deal with each of the risks you have identified
Prepare income statement and statement of retained earnings : Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts into U.S. dollars

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