Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Net Present Value Analysis of Two Alternatives
Over the Rainbow Company has $300,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are as follows:
A
B
Cost of equipment required
$300,000
$ 0
Working capital investment required
Annual cash inflows
$ 80,000
$ 60,000
Salvage value of equipment in seven years
$ 20,000
Life of the project
7 years
The working capital needed for Project B will be released for investment elsewhere at the end of seven years. Over the Rainbow Company uses a 20% discount rate.
Required:
Ignore income taxes. Which investment alternative (if either) would you recommend that the company accept? Show all computations using the net present value format. Prepare separate computations for each project.
to purchase a new car you borrow 25500. a car dealer offers a 5 year loan at the interest rate of 4 compounded
on december 1 2013 colonel wilder borrowed 400000 at 12 interest and pledged 500000 in accounts receivable as
Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2009 for its Elite Quality golf club sets.
ferrel wares is a division of a major corporation. the following data are for the latest year of
1) According to the Financial Executives Institute, one function of controllership is _____. 2) Performance reports _____.
north pole cruise lines issued preferred stock many years ago.it carries a fixed dividend of 6 per share. with the
on january 1 2012 surreal manufacturing issued 600 bonds each with a face value of 1000 a stated interest rate of 3
why do corporations buy back their own stock?what does it tell you about the corporation?what effect does the purchase
Write a report to the president of an airline recommending the use of functional measures of performance. Include specific examples of how they can be used to improve performance.
Use a present value table to determine the amount of cash that Mr. Gulliver's father should give him. Use an algebraic formula to prove that the present value of the trust fund (the amount of cash computed in portion "a") is equal to its $60,000 fu..
What is the cost of the ending inventory?
enviro company issues 8 10-year bonds with a par value of 250000 and semiannual interest payments. on the issue date
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd