User Account

All Pages

Evaluate whether the project should be accepted

Assignment Help Managerial Accounting
Reference no: EM132991218

QUESTION - Kananda Ltd is considering investing in a project with the following forecasted details: Initial amount invested is R400 000 and expected residual value is R30 000.

Year

Cash-flows

Discount factor

Year 1

R80,000

0.909

Year 2

R150,000

0.826

Year 3

R140,000

0.751

Year 4

R80,000

0.683

Year 5

R70,000

0.621

Assuming that the cost of capital for the company is 10%. The cash flows are after tax and depreciation is charged at R30000 per year. Tax rate is 28%.

Required -

1. Calculate each of the following:

1.1 Accounting Rate of Return.

1.2 Payback period.

1.3 Net Present Value.

2. Evaluate whether the project should be accepted.

Reference no: EM132991218

Questions Cloud

Calculate the profit on the sale of the old plant : The company had a profit before tax of R1000000 before taking the above into account. Calculate the profit on the sale of the old plant
Determine a planning schedule for pm computer services : Determine a planning schedule for PM Computer Services, indicating the number of employees working each month
What are the obstacles to expand : What are the obstacles to expand the use of hydro power int he U.S.?
Conclude that the television increases revenue : The manager of a small bar is trying to decide whether to invest in a large-screen television. The manager leases a television for ten weeks and monitors sales
Evaluate whether the project should be accepted : The cash flows are after tax and depreciation is charged at R30000 per year. Tax rate is 28%. Evaluate whether the project should be accepted
Determine teams are effective not with examples : What conditions or context factors determine teams are effective not with examples
How much can she consume in september 2022 : Ross River Ltd produces glass containers. In July 2021, the company reported net profits after tax of $500,000 for the financial year 2020 - 2021 and announced
What amount should Tris record on March : On March 1, 2020, the fair value of Tris's ordinary shares was 40 per share and the fair value of the warrants was 2. What amount should Tris record on March
Prepare a contribution format income statement for the year : Assume that the company produces and sells 87,000 units during the year at a selling price of $11.46 per unit. Prepare a contribution format income statement

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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