Find present value of an investment in plant and equipment

Assignment Help Financial Accounting
Reference no: EM132952506

Problem 1: Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $60500 for 15 years and to have a resale value of $120500 at the end of that period. Assume a 9% rate and earnings at year end. The present value of 1 at 9% for 15 periods is 0.27454. The present value of an ordinary annuity at 9% for 15 periods is 8.06069. The future value of 1 at 9% for 15 periods is 3.64248.

Reference no: EM132952506

Questions Cloud

Do think means that technical analysis always be superior : Do you think this means that technical analysis will always be superior to other forecasting techniques in the future? Why or why not?
Developing an operational plan for an organization : - Discuss the process of developing an operational plan for an organization. Mention the different types of planning tools and techniques in the operational pla
Decision-making techniques for operational planning decision : Assess the usefulness of different decision-making techniques for operational planning decisions.
What is the cost of equity for the firm for clancy : Analysts expect the stock price to increase by 2.1 percent annually and value the stock at $14.65 per share currently. What is the cost of equity for this firm?
Find present value of an investment in plant and equipment : Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $60500 for 15 years and to have a resale value
Estimate the value of a european exercise put option : As an expert in pricing financial derivatives, Estimate the value of a European exercise put option on the index with the same exercise price and expiry date.
What is the incremental analysis if the lees choose option : If production does increase dramatically after their presentation on Shark Tank, What is the incremental analysis if the Lees choose Option 1 over Option 2?
What the journal entry to reimburse the funds on december : Childers Company, which uses a perpetual inventory system, What the journal entry to reimburse the funds on December 31st will include
How do journalize preceding transactions on books of coburn : Journalize the preceding transactions on the books of Coburn Furniture Company. The company uses the perpetual inventory system.

Reviews

Write a Review

Financial Accounting Questions & Answers

  The equipment has no residual value

Richol Corp is considering an investment in new equipment costing $180,000. The equipment will be depreciated on a straight line basis over 5 year life and is expected to generate net cash inflows of $45,000 the first year, $65,000 the second year an..

  What price car can she afford to purchase

If the interest rate is 4.9 percent, compounded monthly, and she has a cash down payment of $2,500, what price car can she afford to purchase

  Determine the selling price of the equipment sold

New equipment purchased during 20x4 totaled $280,000. The 20x4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment. Determine the selling price of the equipment sold.

  What is howell correct ending inventory balance at december

$9,000 of goods received on consignment from Westwood Company. What is Howell's correct ending inventory balance at December 31, 2010?

  Create sampa ltd cash flow statement for the year

Create Sampa Ltd's cash flow statement for the year ended 30 June 2019. Use the direct method for cash flows from operating activities

  Determine the break-even sales in units and dollars

Determine the break-even sales in units and dollars. Start by using the contribution margin ratio (part B.) and then round your answers to the nearest.

  How an understanding of the behavioural factors

You are the finance manager of a service firm. How an understanding of the behavioural factors related to budgeting can be beneficial for a manger

  Questionabsorption and variable costing with high-low cost

questionabsorption and variable costing with high-low cost estimation and cvp analysis including taxespresented are the

  Missing amounts in each of these four separate situations

1.Determine the missing amounts in each of these four separate situations a throughd.

  Prepare any necessary adjusting entries

Prepare an income statement for the year ended December 31, 2011, and a balance sheet as of December 31, 2011 and prepare all journal entries to record the information for 2012. Also prepare any necessary adjusting entries.

  Determine if rashid made money in first month of business

Should include the two satellite dishes when working out his first monthly profits? Determine if Rashid made money in his first month of business.

  Compute the present value of the receivable

Compute the present value of the receivable on Biotech's books on January 1, 2019 immediately after receiving the $1 million down payment

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