Reference no: EM132965856
Question - Han Ltd supplies chilli paste to large supermarket chains. The company is currently considering scrapping the old processor and investing in a new processor. Information about the investment is as follows:
Initial investment in processor $105,000
Operating cash flows over next 5 years:
Cash receipts $50,000
Cash payments $20,000
Residual value of processor in 5 years $5,000
Required rate of return 8%
Depreciation per annum $20,000
Required -
(a) What is the annual net cash flow for years 1-4?
(b) What is the annual net cash flow in year 5?
(c) Find the net present value (rounded) of the investment.
(d) Using the Net Present Value approach, what will be the decision of the management of Han Ltd?
|
Risks of hospitals providing hospice services
: Develop an executive summary of 3-4 pages, citing scholarly research, that details your understanding of hospice care and the benefits and risks of hospitals
|
|
Prepare journal entries
: On January 1, 2019, Angelic company made cash advances of 2,000,000 to the investee. Prepare journal entries from 2017 to 2020
|
|
How much is the equity component arising from the issuance
: On January 1, 2019, Corolla Company issued P3,000,000 of its 8%, 5-year bonds at 110. How much is the equity component arising from the issuance
|
|
What was the total amount of new money raised
: In 2001 the Pandora Box company made a rights issue at $5 a share of one new share for every four shares held. What was the total amount of new money raised
|
|
Find the net present value of the investment
: Information about the investment is as follows: Residual value of processor in 5 years $5,000. Find the net present value (rounded) of the investment
|
|
Record the journal entry for spactacular inc tax expense
: On January 1, 2020, SPACtacular Inc. acquired Druggy McBiotech Corp for $200. Record the journal entry for SPACtacular Inc tax expense
|
|
What will be the expected return and standard deviation
: She would like to build a two-stock portfolio by investing another $80,000 in either stock B or C. What will be the expected return and standard deviation
|
|
Evaluate what is the standard deviation of the portfolio
: What is the standard deviation of the portfolio if 50% were invested in A and 50% were invested in B?
|
|
Future of international business
: What do you think the future of international business can be after Covid? Should us as professionals in International Business change our profession field or w
|