Profitability index of the project

Assignment Help Accounting Basics
Reference no: EM13135167

The management of Crail Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $60,180. The profitability index of the project is closest to:

A. 0.18

B. 0.82

C. 1.18

D. 0.15

Reference no: EM13135167

Questions Cloud

Find the equilibrium values of the real interest rate : What feature in this example leads to the result that you don't need to know the amount of taxes collected by the government to find the equilibrium?
Diameter pipe is used to maintain a constant level : Find flow rate A siphon made of a 1 in-inside-diameter pipe is used to maintain a constant level in a 20 ft-deep tank
An essay about four books you want to read and the reason : I write an essay. Topic is"What are four books you want to read and the reason."
What can a public accounting firm do : What can a public accounting firm, such as the one in which Tiffany works, do to ensure that audits of computerized accounting information systems are conducted efficiently and effectively?
Profitability index of the project : The management of Crail Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $60,180. The profitability index of the proj..
What happens to the real interest rate : What happens to the real interest rate, output, consumption, and investment in the short run (in which the price level is fixed)? What happens in the long run to the real interest rate, consumption, investment, and the price level?
Amount of fencing required : A farmer plans to fence a rectangular pasture adjacent to a river. The pasture must contain 180,000 square meters. What dimensions would require the least amount of fencing if no fencing is needed along the river?
What would the estimated total cost per tax return : Determine the variable and fixed cost components of the firm’s Service Overhead account. What would the estimated total cost per tax return be if the firm prepares 825 standard short-form tax returns in April?
Operating assets is considering the purchase : A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. The payback period for this machine in years is closest to:

Reviews

Write a Review

Accounting Basics Questions & Answers

  What was the correct change in the general fund balance

General government revenues for the year were $800,000 with an overall increase in the city's net assets of $150,000.

  Is the related lease finance or operating lease

If he sells the pubs abd then leases them back would you expect Lion Nathan to change how it accounts for the depreciation of he building?

  Prepare the companys first set of financial statements

On October 1, 2011, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development. Rey adopts the calenda..

  Midyear issuance of securities convertible to common stock

When computing the weighted-average number of shares outstanding during the year for the purpose of calculating diluted EPS, what is the proper treatment of a midyear issuance of securities convertible to common stock?

  Compute the depreciation expense

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

  Problem related to operating income change

Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $40,000?

  Analyze tax implications for star corporation

Analyze the tax implications for the following case study. Apply the IRS codes to calculate a corporation's net operating loss based on net income. Support your conclusions with reference to specific IRS codes and regulations.

  Prepare a context diagram and a level 0 dfd to document

Ashton Fleming has decided to document and analyze the accounts payable process at S&S so the transition to a computerized system will be easier.

  Determine the total estimated uncollectibles

(a) Determine the total estimated uncollectibles. (b) Prepare the adjusting entry at March 31, 2007, to record bad debts expense. (c) Discuss the implications of the changes in the aging schedule from 2006 to 2007

  Prepare a schedule translating the trial balance

Prepare a schedule translating the trial balance from Norwegian kroner into U.S. dollars.  Assume the kroner is the functional currency.

  When the cost behavior pattern has been identified as fixed

When the cost behavior pattern has been identified as fixed at a certain volume of activity.

  Budgeted volume and standard volume

Printers Inc. manufactures and sells a mid-volume color printer (MC) and a high-volume color printer (HC). Each MC requires 100 direct labor hours to manufacture, and each HC requires 150 direct labor hours.

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