Opportunity cost of purchase of land

Assignment Help Accounting Basics
Reference no: EM13144079

A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:

Reference no: EM13144079

Questions Cloud

How this affect the financial statements : Why are there differences between taxable and financial income? What are some examples of permanent and temporary differences? Why do these differences exist? How do they affect the financial statements?
An organizational development : Question 35  An organizational development effort involves __________.Answer   employees at all levels of the organization.  mainly top leaders.  mainly middle management.  just employees at the lower levels of the organization.
What is non-controlling interest share of thelma net income : The land had a book value of $32,000 and was sold to Norek for $45,000. Thelma's reported net income for 2009 was $119,000. What is non-controlling interest's share of Thelma's net income?
What balance should appear in the investment in holister : Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2011?
Opportunity cost of purchase of land : A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:
Total variable cost and average fixed cost per unit : compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the..
Determining the payback period of doris company : Doris Co. is considering purchasing a new machine which will cost $200,000, but which will decrease cash expenses each year by $20,000. The useful life of the machine is 10 years.
Compute office today gross profit and its gross profit per : Office Today’s revenue in the current year is $ 800 million and its cost of goods sold is $ 640 million. Compute Office Today’s gross profit and its gross profit percentage.
What is the vapor pressure of this solution : A solution is prepared by dissolving 246 g of sucrose (C12H22O11) in 624 g of water. What is the vapor pressure of this solution at 30°C? (The vapor pressure of water is 31.8 mmHg at 30°C.)

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining companys cost of common equity

The yield to maturity on the company's outstanding bonds is 9 percent, and the company's tax rate is 40 percent. Percy's CFO has calculated the company's WACC as 9.96 percent. What is the company's cost of common equity?

  Prepare pension worksheets and journal entries

Prepare a pension worksheet for the pension plan in 2008. Prepare any journal entry(ies) related to the pension plan that would be needed at December 31,2008. Prepare a pension worksheet for 2009 and any journal entry(ies) related to the pension plan..

  Evaluate and explain types of business entities

Describe what accounting convergence means and assess the likelihood of the convergence being completed and implemented in the next five (5) years.

  How would the company aftertax cash inflow be affected

How would the company's aftertax cash inflow be affected if (a)it donated the land or (b) it sold the land for $110,000? How would its net income be affected?

  Present value factors for annuity

Dean signed an agreement to sell the plant for $350,000 January 1 year 10 and Lease it back for $15,000 per year, deans incremental borrowing rate is 6%. Present value factors for annuity

  Compute the depreciation expense

Survival Industries, Inc. purchased a boat at a cost of $360,000-Compute the depreciation expense for 2014

  Accrual method of accounting

Joyce Rescho is self-employed and uses the calendar year and the accrual method of accounting. She reports the following activities for December:

  Ethical dilemma in business

Describe in detail an ethical dilemma in business that you or a coworker experienced and how it was resolved.

  Environmental attorney for raymond

In May of 2009, Raymond Financial Services became involved in a penalty dispute with the EPA. At December 31, 2009, the environmental attorney for Raymond indicated that an unfavorable outcome to the dispute was probable.

  Loss on the sale of equipment

A company had net income of $242,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2000 and $4000, respectively. T..

  Goals of financial management

Explain the goals of financial management. The description must include how earnings are valued, how shareholder wealth can be maximized, and how management decisions affect stockholder wealth.

  Compounding interest-amount of payments

The first payment will be due in 6 months, the second in 18 months and the third in 30 months. What is the size of these payments if money is worth 10% compounded quarterly and a focal date of 18 months is used for evaluation purposes?

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