Minimum average net income for the project

Assignment Help Finance Basics
Reference no: EM132062336

A 5 years project requires $65,000 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the life of the project. If the firm requires a minimum average accounting return of 11.65% what must be the minimum average net income for the project to be accepted?

Reference no: EM132062336

Questions Cloud

Analyzing investments in expansions or other major projects : How is the concept of net present value used by hospitals in analyzing investments in expansions or other major projects?
Educational institutions or nonprofit organizations : Why do you think the economists quoted in the story chose to focus on the investments of hospitals instead of educational institutions
Calculate your total dollar return : You purchase 1,000 shares of Spears Grinders Inc. stock for $45 per share. A year later, the stock pays a dividend of $1.25 per share and it sells for $49.
What were Wallace total liabilities-total long-term debt : What was Wallace's total long-term debt in 2016? What were Wallace's total liabilities in 2016?
Minimum average net income for the project : If the firm requires a minimum average accounting return of 11.65% what must be the minimum average net income for the project to be accepted?
What is the irr for project : If the tax rate is 34 percent, what is the IRR for this project?
Determining the estimated cost of equity of sup inc : Sup Inc. is trying to estimate its optimal capital structure. Right now, Sup Inc. has a capital structure that consists of 50 percent debt and 50 percent equity
Summarize the types of services fire : Discuss the proper procedure for obtaining, securing, and submitting evidence for laboratory analysis or testing.
Return to the gold standard regime for fixing exchange rate : Evaluate whether businesses would benefit from a return to the gold standard regime for fixing exchange rates.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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