Evaluate this project and provided calculations

Assignment Help Managerial Accounting
Reference no: EM132786451

Question - Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively.

Cash flow

Time 0 - $235,000

Time 1 $65,800

Time 2 $84,000

Time 3 $141,000

Time 4 $122,000

Time 5 $81,200

Use the IRR decision rule to evaluate this project and provided calculations; should it be accepted or rejected and explain why?

Reference no: EM132786451

Questions Cloud

Determine the propensity to hold money in vietnam : (a) What was the propensity to hold money in Vietnam during 2019 (i.e., what was k)?
Serves victims of domestic violence : Imagine that you are working at an agency that serves victims of domestic violence.
What is the acquisition cost of the entity : The fair value of net assets of the entity at current year-end was P10,000,000. What is the acquisition cost of the entity
What is pakistan gdp : What is Pakistan's GDP? Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees
Evaluate this project and provided calculations : Use the IRR decision rule to evaluate this project and provided calculations; should it be accepted or rejected and explain why
Identifying strengths and weaknesses as a student : Consider your experience as a writer and reader and describe yourself in term of each? Identifying your strengths and weaknesses as a student?
What is the optimal value : 1. Consumption-Savings Consider a consumer with a lifetime utility functionU = u(Ct) + ß u(Ct+1) that satisfies all the standard assumptions listed in the book.
Calculate the net present value : A corporation is considering purchasing a plant asset. The present value of these future net cash flows is $90,919. Calculate the net present value
Are there elements of models that would be valuable : Are there elements of these models that would be valuable in criminal justice (either policing, courts or corrections)? In what way could they apply?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Describe qualitatively and quantitatively source

Describe qualitatively and quantitatively (in as much detail as possible) the source(s) of any underapplied or overapplied overhead cost.

  How have changes in information technology

How have changes in information technology impacted management of the value chain?

  What is the fundamental flaw in peter newell''s analysis

What is the fundamental flaw in Peter Newell's analysis?

  How should such variances be investigated

Describe how there may be a variance interaction (trade-off) effect when a favourable Direct Material Price variance is recorded at the same time

  Compare the views of management and accountants

Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls and how these changes have affected corporations, accounting firms, and investors.

  Garden depot is a retailer that is preparing its budget for

garden depot is a retailer that is preparing its budget for the upcoming fiscal year. management has prepared the

  Show the effect on financial statements

Evaluate the recommendation of the Vice president (Treating Ad as cost of production and overhead). The effect on financial statements and evaluate the recommendation of controller Morgan (Treating Ad as operating expense). The effect on financial ..

  Provide a financial statement analysis of brickworks company

ACCY918: Applied Management Accounting - Identify and comment on the Vision, Mission and key strategies of the company and Provide a financial statement

  Computing expected price and profits

You are a manager of a firm that sells a "commodity" in market that resembles perfect competition, and your cost function is C(Q) = Q + 1Q^2. Calculate the expected market price.

  Determine the standard material cost of ten litre container

Determine the standard material cost of a 10 litre container of the new product. Tahmar Valley Chemical Company manufactures industrial chemicals.

  Who is affected by buddy decision

How should Buddy have handled this situation? Is Buddy behaving ethically? Why or why not? Who is affected by Buddy's decision?

  Calculate betty work in process inventory

Calculate Betty's work in process inventory balance at December 31, 2020.

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