Johnson corp. has an 8% required rate of return

Assignment Help Accounting Basics
Reference no: EM13333947

Johnson Corp. has an 8% required rate of return. It's considering a project that would provide annual cost savings of $50,000 for 5 years. The most that Johnson would be willing to spend on this project is
Present Value PV of an Annuity
Year of 1 at 8% of 1 at 8%
1 .926 .926
2 .857 1.783
3 .794 2.577
4 .735 3.312
5 .681 3.993
a. $125,910.
b. $165,600.
c. $199,650.
d. $34,050.
What is the answer

Reference no: EM13333947

Questions Cloud

Explain dehydration of 1-methyl-1-cyclohexanol : Can someone please help and draw out step by step mechanism for dehydration of 1-Methyl-1-cyclohexanol using phosphoric acid.
Explain zincon detection of zinc and copper : For detection using Fluozin-3, what is the excitation wavelength that should be used. For Zincon detection of zinc and copper, what pH range agent do, and why would it be useful for metal detection
Principles of financial accounting : Articulation of financial statements.
Find the translational kinetic energy of the center of mass : Two automobiles, each of mass 1.500*10^3 kg, travel in the same direction along a straight road. find the translational kinetic energy of the center of mass
Johnson corp. has an 8% required rate of return : Johnson Corp. has an 8% required rate of return. It's considering a project that would provide annual cost savings of $50,000 for 5 years. The most that Johnson would be willing to spend on this project is
What is the annual revenue required by company from contract : Your company operates a fleet of light trucks that are used to provide contract delivery services. As the engineering and technical manager, you are analyzing the purchase of 55 new trucks as an addition to the fleet.
Determine the two gaseous equilibria : Consider the two gaseous equilibria- SO2(g) + 1/2O2(g) SO3(g) K1 2SO3(g) SO2(g) + O2(g) K2 The values of the equilibrium constants K1 and K2 are related
Obtain the direction of the magnetic field : A group of particles is traveling in a magnetic field of unknown magnitude and direction. What is the direction of the magnetic field
Determine how will donut shop s eps be effected : Executives of the Donut Shop have determined that the company s DOL is 3X and its DFL is 6X. According to this information, how will Donut Shop s EPS be effected if its amount of EBIT turns out to be 4 percent higher than expected

Reviews

Write a Review

Accounting Basics Questions & Answers

  Passive loss deduction that can offset nonpassive income

Bill Goggans died and left passive activity property to his nephew, Travis. Bill's basis in the activity was $30,000, while Travis' basis was stepped up to $50,000. Suspended losses amounted to $22,000. How much is the passive loss deduction that ..

  What is the monthly break-even in sales dollars

Allen Company produces and sells a single product whose selling price is $100.00 per unit and whose variable expense is $80.00 per unit. The company's fixed expense total $400,000 per month. What is the monthly break-even in sales dollars?

  The carrying amount of the bonds and the amount paid

1) Juan Co. has two ongoing lawsuits and is in the process of preparing its financial statements. In one of the lawsuits against Juan, the lawyers indicate that it is probable that a loss estimated to be 1,000,000 will be resolved soon.

  Employee business expenses and agi limit

Sarah incurred employee business expenses of $5,000 consisting of $3,000 business meals and $2,000 customer entertainment. She provided an adequate accounting to her employer's accountable plan and received reimbursement for one-half of the total ..

  Investing activities section of the statement of cash flows

If a gain of $9,000 is incurred in selling (for cash) office equipment having a book value of $55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is:

  Degree of homogeneity

The greater the degree of homogeneity, a. the greater the number of needed cost pools. b. the fewer the number of needed cost pools. c. the less accurate the costs of a particular cost objet, d. greater the variety of cause and effect relationships w..

  Compute the breakeven point in sales units.

Techno Designs produces head covers for golf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $126,500 and fixed general and administrative expenses of $82,030 for the year. Variable manu..

  Importance of making short term-long term financial decision

Discuss the importance of making short term and long term financial decisions. Which is more important for the firms?

  Allocating the actual cost of advertising and promotion

The most likely cost driver base for allocating the actual cost of advertising and promotion would be:

  Problem related to units of inventory

If there were 30,600 units of inventory on hand on December 31, 2007, how many units should be produced in January, 2008 in order for the company to meet its goals?

  Equivalent units of production-weighted average method

Of those started, 80,000 were finished and the remaining 40,000 were left 20% complete. Calculate the equivalent units of production for the year using the weighted average method.

  Merchandise on extended credit terms

Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured and bad debt losses cannot be reasonably predicted.

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