How much should this company invest today

Assignment Help Accounting Basics
Reference no: EM133187266

Question - A company will like to invest in capital budget project. In 40 years the project will be worth $500,000 in today's dollars. How much should this company invest today, assuming an average inflation of 2% and a 10% annual return?

a. $11,047

b. $23,015

c. $24,393

d. $10,248,724

Reference no: EM133187266

Questions Cloud

Compute the cost of goods purchased : Question - The following data pertains to Taylor Company for the year. Compute the cost of goods purchased and cost of goods sold
Organizational theory and design : 1. Which of the three organizational problems-separate reporting systems, business self-interest, no technology transfer-would you address first? Explain.
Innovate an effective solution : How does it solve the problem? Formulate a suitable strategy for acquiring the knowledge needed to support and develop your innovation.
What is the tax implication on the sale of this new machine : The company's marginal tax rate is 34%. What is the tax implication on the sale of this new machine at year 5
How much should this company invest today : A company will like to invest in capital budget project. In 40 years the project will be worth $500,000 in today's dollars. How much should this company invest
What is the definition of a regression analysis : What is the definition of a regression analysis, and why would a researcher be interested in using this type of analysis? Share at least three specific real-wor
What is the projected addition to fixed assets : Question - Assume that Creative Analysis, Inc. is currently operating at 70 percent of capacity. What is the projected addition to fixed assets
What amount should be reported as basic earnings per share : In addition, the entity issued 100,000 incentive share options with an exercise price of P30. What amount should be reported as basic earnings per share
How did the change agent deal : Identify as much causation as possible for each problem. (E.g., poor productivity may be caused by management issues, lack of proper planning, lack of resources

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why this liability is often referred to as deferred revenue

Explain why this liability is often referred to as a deferred revenue account.-   What activity normally reduces this liability? Can you think of any other transaction that would also reduce this account?

  How much does she need to fund this perpetuity

Given that the interest rate is 9%, how much does she need to fund this perpetuity

  Prepare journal entries required for dividend declarations

Prepare the journal entries required for the dividend declaration and payment, assuming that they occur simultaneously. (Credit account titles are automatically

  Prepare the operating activithe ties section of cashflows

Prepare the operating activithe ties section of statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

  Describe the error that Lila made in the calculations

The order arrives two days later, and she finds that three of them are torn. Describe the error that Lila made in the calculations

  What is the difference between dss and knowledge management

What is the difference between DSS and knowledge management?

  City parks department activities are financed entirely with

city parks department activities are financed entirely with general fund appropriations. it receives two invoices one

  What is the maximum monthly rent

What is the maximum monthly rent the company should be willing to pay for this machine (assuming they've made optimal use of their own machine)

  What effect did have on drabble financial statement

During 2014, Drabble received a $4,000 cash dividend from Gilliam. What effect did this have on Drabble's 2014 financial statements?

  Make a journal entry using a memo entry method

The incorporators subscribed a total of 2,000 preference shares and 5,000 ordinary shares. Make a journal entry using a memo entry method

  What would be the net operating income

Cost Accounting Question - If sales decline to 900 units, what would be the net operating income

  What are some of the ethical questions that you will ask

What are some of the ethical questions that you will ask to yourself in light of the fundamental principles of professional code of conduct for accountants

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