User Account

All Pages

Should tanya make the investment if her required rate

Assignment Help Managerial Accounting
Reference no: EM13955886

Tanya Sinclair, owner of Sinclair Fine Wine, is considering investing $87,930 in a temperature-controlled wine storage room. She plans to rent space to customers and expects to generate $25,000 annually (rental charges less miscellaneous expenses other than depreciation).

Required:

a. Assuming Tanya wishes to evaluate the project with a five-year tine horizon, what is the internal rate of return of the investment? (Ignore taxes.)
b. Should Tanya make the investment if her required rate of return is 12 percent?

Reference no: EM13955886

Questions Cloud

Century corporate social responsibility : Read Chapter 2 of the textbook as well as the Snider, Hill, and Martin (2003) article on corporate social responsibility in the 21st century. Conduct research on the Internet and select a company for which you will summarize the corporate social r..
What is expected monetary value for the investor''s problem : What is the formula for the weighted average score for alternative j when using a multi-criteria scoring model?
Determine the service-related variance for surgical volume : Determine the service-related variance for Surgical Volume. Determine the service-related variance for Patient Days. Prepare a flexible budget estimate. Present a side-by-side budget, and the actual Surgical Revenues.
How far does the car travels before it comes to a stop : How far does the car travels before it comes to a stop. What does the mathematical model say will happen to the car after it comes to a stop? What will actually happen? Why are the two different?
Should tanya make the investment if her required rate : Assuming Tanya wishes to evaluate the project with a five-year tine horizon, what is the internal rate of return of the investment? (Ignore taxes.)
The purpose of a rough draft : The purpose of a rough draft is to provide raw material for you to revise. A draft may be compared to the ingredients for my spaghetti. Once your rough draft is completed you can organize it by grouping ideas together under subtopics. I organize the ..
Date of acquisition consolidation eliminating entries : Calculate total goodwill and its allocation to the controlling and non controlling interests.
Determine resultant normal and frictional force acting : A 150-lb fireman is holding a hose which has a nozzle diameter of 1 inch and hose diameter of 2 inches. If the velocity of the water at discharge is 60 ft/s - determine the resultant normal and frictional force acting on the man's feet at the grou..
Translate a program alm to an asp program : Design a documentation for writing such scenarious in SPARC - Extend the framework to allow SPARC programs to be used to specify robot's behavior.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  1the management of melchiori corporation is considering the

1.the management of melchiori corporation is considering the purchase of a machine that would cost 520000 would last

  Munoz sporting equipment manufactures

Munoz Sporting Equipment manufactures baseball bats and tennis rackets.

  Make the necessary adjusting entries

Prepare an adjusted trial balance and make the necessary adjusting entries.

  Calculate the net benefit or cost to turun telelaitos

Calculate the net benefit or cost to Turun Telelaitos from implementing a JIT production system. What other non-financial and qualitative factors should Turun Telelaitos consider before deciding on whether it should implement a JIT system?

  Direct manufacturing labor rate variance

a) Calculate the following variances:             Direct manufacturing labor rate variance             Direct manufacturing labor usage variance

  Calculate the projects estimated revenues and costs

Calculate the projects estimated revenues and costs. Assume the land will be transferred to Toxics at the end of the project for $500,000 and immediately resold at the estimated fair market value. Ignore revenues and expenses related to the sale o..

  Balance in the investment account

Required: What is the c as of December 31, 2009?

  Preparing budget-top-down and bottom-up approach

Recognize and explain a project where the top-down budgeting approach would be most appropriate. Detail your rationale for decision and list the advantages for using that approach.

  Examples of variable cost for a fitness center

One way to own your own fitness business is to buy a franchise. Snap Fitness is a Minnesota-based business that offers franchise opportunities. For a very low monthly fee ($26, without an annual contract) customers can access a Snap Fitness center..

  Menlo company distributes a single product the companys

menlo company distributes a single product. the companys sales and expenses for last month

  Income statement to reflect lcm valuation

Restate the income statement to reflect LCM valuation of the ending inventory. Apply LCM on an item-by-item basis.Compare the LCM effect on each amount that was changed in requirement

  Assuming that firm asset beta

ABC Inc is a pure equity firm. Firm decides to recapitalize to take advantage of tax shield.

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