Evaluate return on investment

Assignment Help Cost Accounting

Reference no: EM136139

Project Initial Investment Annual Earnings

w $800,000 $90,000

x 100,000 20,000

y 300,000 25,000

z 400,000 60,000

Required:

a. If the investment manager is recently making a return on investment of 16 %, which project(s) would the manager want to pursue?

b. If the cost of capital is 10 % and the annual earnings estimated cash flows excluding finance charges, which projects should be chosen?

c. Consider only one project will be chosen and the annual earnings approximate cash flows excluding finance charges. Which project should be selected?

Reference no: EM136139

Questions Cloud

Explain how this leader instilled a culture of sustainabilit : Explain how this leader instilled a culture of sustainability at his company. Explain general management strategies a business leader can use to increase sustainability in your field.

Evaluate the combined income tax rate : Evaluate the combined (state+ federal) income tax rate for XYZ company. Use this rate for evaluating after tax cash flows and evaluate the after tax cash flow for this investment. Make adjustment in the DDB depreciation charges if required in any y..

Reconstruct four steps taken to reengineer the program : Analyze the Pre-Implementation as well as Design strategies of Major Schell and interpret four PRACTICAL OUTCOMES OF HIS CHOICES. Reconstruct four steps taken by Major Schell to reengineer the program in order to fit the new objectives.

Evaluate the total of each production cost : Evaluate the total of each production cost incurred for April (direct materials, direct labor, and applied overhead), and the total cost related to each job (including the balances from 31 st March).

Evaluate return on investment : If the investment manager is recently making a return on investment of 16 %, which project(s) would the manager want to pursue? If the cost of capital is 10 % and the annual earnings estimated cash flows excluding finance charges, which projects ..

What dollar volume of sales per month is required : What dollar volume of sales per month is needed for Accents to earn a monthly operating income of $10,000?

Explain the facts, issues, decision and reason : On August 22nd the presidents of ABC as well as XYZ attend the closing on the property. As he is about to sign the closing documents, the president of ABC notices the asbestos provision as well as refuses to sell the property

Create a differential analysis report : Create a differential analysis report, dated 19 th June, 2012, for the make-or-buy decision.

Prepare a cash budget for knightsbridge corporation : Create a cash budget for Knightsbridge Corporation for the month of June 2012. The template of the cash budget is given below.

User Account

All Pages