User Account

All Pages

How much in annual depreciation expense

Assignment Help Accounting Basics
Reference no: EM131870182

Question - O'Brien Salvage is considering the purchase of a new heavy duty truck. This truck will be picking up scrap from large industrial manufactures thoughout the suburban chicago. This is a market that O'Brien until recently has been unable to enter. Use the following data and answer the questions that follow.

Initial Investment ... 118,000

Annual Revenue.....60,000

Annual Cash Expenses.....40,000

Salvage Value..................25,000

Useful Life..................10 years

Hurdle rate ...................12%

What is the net cash inflow annually?

How much in annual depreciation expense?

How much in annual net income?

Calculate ROI?

Calculate Payback?

Calculate NPV and make a decision. what's the most you would pay?

Will IRR be more or less than the hurdle rate?

Reference no: EM131870182

Questions Cloud

What is the probability of rolling an odd number : What is the probability of rolling an odd number and then a number less than 3 on two rolls of a fair die?
Find the probability of observing all heads : Three fair coins are flipped and the up face on each is observed. Find the probability of observing all heads.
What is the value of x in the probability distribution : Stat 104: Quantitative Methods - What is the value of x in the probability distribution and What is the chance that Mike finished his exam in 63 to 72 minutes
Describe the relationship between standard error : 1. Describe how the standard error of the mean compares to the standard deviation. 2. Describe the relationship between standard error of the mean and sample.
How much in annual depreciation expense : O'Brien Salvage is considering the purchase of a new heavy duty truck. How much in annual depreciation expense? How much in annual net income
Explain how the z score compares to the z test : 1. Explain how the z score compares to the z test. 2. Describe the information contained in the unit normal table. How do you use the unit normal table to desc
Why do you suppose early civilization could have influence : Why do you suppose one early civilization, could have such a dominant influence on evolving societies in Europe, and later America, from the time of the Roman.
Context of hypothesis testing : Athletes are often tested for use of performance-enhancing substances. If we consider this testing in the context of hypothesis testing, given
What is the company cost of capital : The debtholders charge an interest rate of 10 per cent whilst the shareholders require a return of 18 per cent. What is the company cost of capital?

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