Discuss what is the profitability index for the project

Assignment Help Accounting Basics
Reference no: EM131784937

Chris Lawrence is contemplating a project with an initial investment of $50,000. Chris also has a discount rate of 8%. If the project has estimated net annual cash flows of $12,000 for the next six years, what is the profitability index for the project?

Reference no: EM131784937

Questions Cloud

Present value of tax liability : The longer an investment waits to take capital gains, the lower is the present value of tax liability?
Why should accountants have an understanding of annuities : What is the time value of money? Why should accountants have an understanding of compound interest, annuities, and present value concepts?
What is the capital budgeting process : What is the capital budgeting process? DO you think this should be left only to top management..why or why not
Valdez company opened a special checking account : Valdez company opened a special checking account. The charge for each check written was either $.55 or a $ 6-a-month minimum service charge
Discuss what is the profitability index for the project : Discuss what is the profitability index for the project, Chris Lawrence is contemplating a project with an initial investment
Compute the change in net income for each firm : If the economy contracts in coming years, Wood and Lake will both suffer. Compute the change in net income for each firm in dollar amount and in percentage.
Describe the components of the common body of tax law : Describe the components of the common body of tax law. What role does the Internal Revenue Service play in interpreting
Discuss the home-equity proceeds to purchase a car : What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car
Discuss request for confirmation of our account : We are sorry but we cannot answer your request for confirmation of our account

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problems on management at premiere products

For the following exercises, you will address problems and answer questions from management at Premiere Products. You do not use the Premiere Products database for any of these exercises.

  Compared with the unit product cost calculated by the abc

a melbourne-based company acacia is considering the adoption of an acitivity-based costingabc system because they

  Company only prepares adjustments and financial statements

During the year the company borrowed money from a bank. Interest will be paid 8-06-13 but accrued int @ 12-31-12 is ..... 275.00

  An outside supplier has offered to sell clemente the

clemente inc. incurs the following costs to produce 10000 units of a subcomponent direct materials 14000 direct labor

  Compute quarterly earnings ie net income and quarterly

july 1 2013nt electronics anticipates purchasing 100 ounces of gold in mid-august 2013. nt plans to use the gold in the

  Question the following information is taken from the 2007

question the following information is taken from the 2007 general ledger of clifford company.rent rent rent expense

  Discuss annual straight-line depreciation on the machinery

Field Instruments completed the following transactions and events involving its machinery. 2010 Jan. 1 Paid $106,600 cash plus $6,400 in sales tax for a new.

  Calculate the net present value of the helicopter purchase

Bar T Ranches, Inc. is considering the purchase of a new helicopter for $400,000. The firm's old helicopter has a book value of $90,000, but can only be sold for $60,000. It was being depreciated at the rate of $13,500 per year for four more years..

  Governing authorities over financial reporting

You have recently hired several new members to your team who will be assisting with financial statement analysis for your clients. As part of their training, you want to make sure that they fully understand the requirements of the SEC regarding fi..

  Assume a corporation has earnings before depreciation and

assume a corporation has earnings before depreciation and taxes of 117000 depreciation of 45000 and is in a 35 percent

  Write a brief memo that explains the contradiction regarding

Write a brief memo that explains the contradiction regarding why GAAP requires Sung to report historical cost with respect to the land versus market value with respect to the marketable securities.

  Division of net income

PFW Co. reports net income of $76,900. Partner salary allowances are Pitts $16,130, Filbert $3,110, and Witten $6,500. Indicate the division of net income to each partner, assuming the income ratio is 50 : 30 : 20, respectively.

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