Solution-Prepare consolidation journal entry at the date

Prepare consolidation journal entry at the date

Assignment Help Finance Basics

Reference no: EM13871211

PART 1

Please solve both the questions using MS EXCEL

Question 1

A firm whose cost of capital is 10% is considering two mutually exclusive projects X and Y, the details of which are:

Year Project X Project Y

Cost 0 Rs. 70,000 Rs. 70,000

Cash Inflows 1 Rs. 10,000 Rs. 50,000

2 Rs. 20,000 Rs. 40,000

3 Rs. 30,000 Rs. 20,000

4 Rs. 45,000 Rs. 10,000

5 Rs. 60,000 Rs. 10,000

Compute the Net Present Value at 10%, Profitability Index, and Internal Rate of Return of the two projects.

Reference no: EM13871211

Questions Cloud

About the cyclical phase of the stock market : Common stock mutual fund manager, Mr. Jim, forms expectations about the cyclical phase of the stock market when actively managing his fund portfolio. In what situation might Mr. Jim want to lower the average beta of the fund that he manages? Explain ..

Finance the purchase of additional plant and equipment : Company X is considering issuing 10,500 new shares to help finance the purchase of additional plant and equipment. If Mr. Jim wishes to maintain his proportionate ownership in the company, what is the additional dollar amount he will be required to m..

What are the possible consequences of longer credit periods : When customers experience economic difficulties, companies consider extending longer credit periods. What are the possible consequences of longer credit periods on Sales, Accounts Receivable, Allowance for Doubtful Accounts, Net Income, and the recei..

Seaver company sold land with a book value : On January 1, 2010, Seaver Company sold land with a book value of $23,000 to Bench Company. Bench Company paid $15,000 down and signed a $15,000 non interest bearing note, payable in two $7,500 annual installments on December 31, 2010 and 2011.

Prepare consolidation journal entry at the date : Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of financial position of the companies immediately after the acquisition are provided below. All assets have been reported following fair value.

Concept of market efficiency fit into this distinction : Distinguish between the intrinsic price of a share of common stock and its current market price. Why might they differ? How does the concept of market efficiency fit into this distinction? (This question is related to question 7-4 above. Note that ..

What basis of accounting should be used in fund : What basis of accounting should be used in fund level accounting for each of the following funds and why?General Fund Special Revenue Funds Enterprise Funds

What are the disadvantages of write off method accounts : Describe how (and when) the direct write-off method accounts for uncollectible accounts. What are the disadvantages of this method?

Determine the capacitance : Problem: A 50kW load operates from a 60 Hz 10 kV line with a power factor of 60% lagging. Determine the capacitance that must be placed in parallel with the load to achieve a 90% lagging power factor.

User Account

All Pages

Prepare consolidation journal entry at the date

Reference no: EM13871211

Reference no: EM13871211

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

What managerial assessments may you make about an

How can cash discounts improve collections

Big doms pawn shop charges an interest rate of 14 percent

What is the projects npv if the interest rate is 6 percent

Computation of interest rate and current value of debt

Explain the usefulness of comparative financial statement

Describe the directional effect

In the united states a public companys financial statements

Calculate company total asset turnover

In what ways can a bond investor make money?

Train incoming consultants on financial management-risks

What is this firm''s market-to-book ratio

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT