User Account

All Pages

Find the present value of an investment

Assignment Help Accounting Basics
Reference no: EM133035135

Question - 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.

a. $998092

b. $520754

c. $487672

d. $615183

Reference no: EM133035135

Questions Cloud

How will Anita efforts to save for a deposit be affected : How will Anita's efforts to save for a deposit be affected if there is a fall in interest rates which causes a rise in house prices
What level of sales would generate in net income : The CEO would like to see higher sales and a forecasted net income of $2,100,000. What level of sales would generate in net income
How much will Ana receive : Residual profits shall be divided in the ratio of 2:2:6 to Delia, Nada and Romina. How much will Ana receive if the net income earned is $470,000
Differences in leadership and entrepreneurial style : Summarize the empirical research on the differences in leadership and entrepreneurial style and effectiveness.
Find the present value of an investment : Question - Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $60500
Calculate the buyer open-to-buy at retail : Calculate the buyer's open-to-buy at retail for the remaining dates of Feb. provided that she has $123,700.00 worth of merchandise on order
Implications of cost of capital and capital budgeting : In considering what we have learned thus far regarding the importance of determining the cost of capital as well using capital budgeting tools, explain why it i
Company general and administrative expenses : No other expenses were incurred. How much is the company's general and administrative expenses?
At what interest rate would at refinance : Now suppose that AT has $400,000 of preferred shares outstanding that have a yield of 8% on par. At what interest rate would AT refinance

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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