Find what is net present value of the proposed investment

Assignment Help Managerial Accounting
Reference no: EM132590321

Janet Ltd. is considering purchasing laser equipment for $72,000. The machine will require additional working capital of $8,000. Its anticipated seven-year life will generate additional revenue of $31,000 annually with operating costs, excluding depreciation, of $14,000. At the end of seven years it will have a salvage value of $9,760 and return $8,000 in working capital.

Required:

Question A) If the company has a required rate of return of 12 percent, what is the net present value of the proposed investment?

Question B) What is the internal rate of return?

Reference no: EM132590321

Questions Cloud

Write a brief description of the chosen regulation : Access the Plain Language regulations and scroll down to Key to Terms Used in Tables evaluated by top federal regulatory experts.
Discuss if various items should or should not be disclosed : As an audit manager for Gaston & Gaston LLP, Discuss if the various items should or should not be disclosed and provide reasons for your recommendation.
Information security and information technology : Research a unique news story or article related to Information Security/Information Technology.
Discuss how you will show your personal values : Discuss how you will show your personal values through the professional communication style you will use with clients. Identify concepts such as boundaries.
Find what is net present value of the proposed investment : Janet Ltd. If the company has a required rate of return of 12 percent, what is the net present value of the proposed investment?
Did harry make a rational decision : Did harry make a rational decision? What model of behavioral decision making does this case support?
How the joint costs allocated to jarlon would be : Using the sales value at splitoff method, the percentage weightings for joint cost allocations for Jarlon and Kharton respectively are?
How the concepts will help you as a healthcare leader : For this assignment, you will select a topic for your final research paper. You will submit a Word document that discusses the topic you have chosen.
Many benefits to the use of cryptocurrency : While there are many benefits to the use of cryptocurrency, there is also much skepticism from the general public.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd