How large would the annual net cash inflows

Assignment Help Accounting Basics
Reference no: EM131805693

Highpoint, Inc., is considering investing in automated equipment with a ten-year useful life. Managers at Highpoint have estimated the cash flows associated with the tangible costs and benefits of automation, but have been unable to estimate the cash flows associated with the intangible benefits. Using the company's 10% discount rate, the net present value of the cash flows associated with just the tangible costs and benefits is a negative $184,350. How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment?

Reference no: EM131805693

Questions Cloud

Prepare the statement of cash flows for year ended december : Study the information provided by Centurion Limited and prepare the statement of cash flows (using the indirect method) for the year ended 31 December 2015.
What is the materials cost per equivalent unit for april : the process and the first-in, first-out method is used to cost inventories. What is the materials cost per equivalent unit for April
Function of exogenous variables : Suppose and economy described by the Solow model has the following production function: Y=K^0.4(LE)^0.6
Natural level of output of goods and services : Suppose an economy's natural level of output of goods and services generally increases over time. The central bank of the country is responsible
How large would the annual net cash inflows : How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment
What are the average and standard deviation of costs : Your costs had been forecast as having an average of $138,000 with a standard deviation of $35,000. You have just learned that your suppliers are raising prices
Complete a preliminary rea model with cardinalities : Complete a preliminary REA model with cardinalities of the process you will be prototyping for the Database Project
Explain the second version of kants categorical imperative : In your own words but with accuracy, state and explain the second version of Kant's Categorical Imperative.
Wholesale market for premium scotch liquor : Instruction: Do not round intermediate calculations. Round your final answers to the nearest penny (two decimal places).

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.

  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!

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