User Account

All Pages

Provide detailed calculations indicating which project best

Assignment Help Accounting Basics
Reference no: EM133185164

Question - Your Client is investigating three covid related projects that operate in the health sector in Australia. However your client is not sure which one to invest and has sent the relevant details to you to advise upon. The characteristics of the projects are given below:

 

Project 1

Project 2

Project 3

Initial Outlay (IO)

$74,000

$52,000

$26,000

Annual Cash Flows (CF)

$20,000

$12,000

$12,000

Life Span

8 Years

14 Years

5 Years

A discount rate of 13%p.a. is estimated as the risk in all of these projects. Assume that the annual flows are after tax and depreciation.

Required - Your client wishes you to provide detailed calculations indicating which project you believe to be the best. The client will then decide to invest one of the projects. Use NPV and EAV.

Reference no: EM133185164

Questions Cloud

Compute al gross income : During 2021, he received cash of $425,400 for medical services. Compute Al's gross income for 2021 using the cash basis of accounting
Why agency problems within greenfuture plc might arise : Discuss the reasons why agency problems within GreenFuture Plc might arise. What alternative funding options might the company's management consider
How much is the advanced vat : Plant Company is a VAT-registered flour miller. It imported wheat from abroad at a total invoice price of $160,000. How much is the advanced VAT
How much is the vat payable should the input vat related : Purchases of palm fruits 10,000,000. How much is the VAT payable should the input VAT related to zero-rated sales be claimed as refund
Provide detailed calculations indicating which project best : Your client wishes you to provide detailed calculations indicating which project you believe to be best. The client will then decide to invest one of projects
What the remuneration expense for the year ended june : During the year ended 30 June 2016 four employees left. What the remuneration expense for the year ended 30 June 2015
Viral treatment options : There are many opinions on the need and/or importance of vaccines in preventing the spread of disease.
Prepare the income statement for year ended december : On December 31, Bryniuk's Company, the accounting records showed the following information: Prepare the Income Statement for year ended December
Calculate the relevant cost for the special windows : The original design costs for this type of window was £5,000 in 1998. Calculate the relevant cost for the special windows held in inventory

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd