User Account

All Pages

Find what is the npv of the investment

Assignment Help Financial Accounting
Reference no: EM132539814

Earp Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of the machine will be $977,000, and its economic life is five years. The machine will be fully depreciated by the straight-line method. The machine will produce 22,000 keyboards each year. The price of each keyboard will be $50 in the first year and will increase by 5 percent per year. The production cost per keyboard will be $12 in the first year and will increase by 5 percent per year. The project will have an annual fixed cost of $197,000 and require an immediate investment of $27,000 in net working capital. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 12 percent.

Question 1: What is the NPV of the investment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132539814

Questions Cloud

Rulemaking process in healthcare assess general tools : Discuss the necessity of analysis in the rulemaking process in healthcare Assess general tools and frameworks used in policy analysis within healthcare.
Write a critical reflection and analysis : Write a critical reflection and analysis on the case scenario - purpose of this module is to prepare students for their 70-day practice placement
Project plan for completing project : Provide the final project plan for completing the project described below on time, on budget, and turned over to the owner.
What is the npv of the proposed toad ranch today : What is the NPV of the proposed toad ranch today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Find what is the npv of the investment : What is the NPV of the investment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Find what is the project total nominal cash flow from assets : What is the project's total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign.)
Explain computations why the might not be a good strategy : Riley Inc. Riley could borrow money from a bank at a rate of 16%. Explain through computations why this might not be a good strategy.
What are possible alternative actions that sony could take : If the breakeven point was higher than the number of units that might be able to be sold, what are the possible alternative actions that Sony could take?
Code of ethics and conscious capitalism : Pick one of the following terms for your research: code of ethics, conscious capitalism, corporate social responsibility (CSR), culture,

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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