Should this project be accepted

Assignment Help Managerial Accounting
Reference no: EM132973277

Question - Company ABC forecasts the following cash flows on a project under consideration. A 10,000$ cost in the first instance, followed by 7,500$ and 8,500$ cash flows at end of years 2 and 3, respectively.

Company ABC would like to use the internal rate of return rule to accept or reject a project. Please provide two reasons this project can use the IRR rule to evaluate the project?

Should this project be accepted if the required return is 12%?

Reference no: EM132973277

Questions Cloud

Who should contact if are not the right person to deal with : Who should contact if are not the right person to deal with it? If you find out the number on the electricity expense is different to what is showing.
Create a comparative analysis of these options : Create a comparative analysis of these options indicating your decision and the reasoning behind it
Calculate the cost for location : The management must determine which city should be chosen that can save the company's expenses. To calculate the cost in each location, the management determine
How much cash is expected for payments on account in june : Wight typically pays 30% on account in the month of billing and 70% the next month. How much cash is required for payments on account in May?
Should this project be accepted : A 10,000$ cost in the first instance, followed by 7,500$ and 8,500$ cash flows at end of years 2 and 3, respectively. Should this project be accepted
Describe the research project and highlights report finding : Scenario: You are working for a multinational company's (can select any multinational company) Distribution Department and the company entering a new market and
Create a direct materials purchases budget for july : Create a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total.
By how much will net income increase : Income taxes for the year were $750,000 and interest expense was $1,000,000. By how much will net income increase if sales increase by 12%
Suggestion of a possible outcome for the client : Identification of the historical origins and evolution of BOTH of your chosen theories - Details about the typical counsellor/client relationship and any other

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How much would their costs be expected to be

When they produced 203,828 units, their fixed manufacturing costs were found to be 806,815, How much would their costs be expected to be

  Calculate the historical growth rate in earnings

Calculate the next expected dividend per share, D1. (Hint: D0 = 0.4($6.50) = $2.60.) Assume that the past growth rate will continue.

  How are the large losses related to fixed costs

The company has 2,000 employees and operates in three western states. Expand on John's thought. How are the large losses related to fixed costs

  Explain which financial ratios would apply to the company

A recruitment company needs help explaining which financial ratios would apply to the company and which would not. State the reasons for your assertions.

  Calculate the change in total profit that will result

Calculate the change in total profit that will result if Performance Motors takes on warranty work for an additional 40 cars per month

  Prepare entries to reflect correct land

Prepare entries to reflect correct land, building, and depreciation accounts at December 31, 2011 - show the proper presentation of land, building, and depreciation on the balance sheet at December 31, 2011.

  What is statement of affairs vs balance sheet

A Statement of Affairs is a very crucial document within the insolvency process. What are the information that this document must contain?

  Calculate cost of good sold and ending inventory

Calculate Cost of Good Sold and Ending Inventory under each of the following cost flow assumptions: Weighted Average, FIFO And LIFO

  How compute the equivalent units of production for october

Compute the equivalent units of production for October. Clonex Labs, Inc., uses the weighted-average method in its process costing system.

  How many units should be purchased for each of the months

Prepare merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.

  Prepare cash receipts schedule for the first quarter of year

Spalding Pointers Corporation, Determine the amount of sales revenue Spalding will report on the Year 1 first quarterly pro forma income statement.

  What would be considered corroborative evidence

In this scenario what would be considered contradictory evidence? What would be considered corroborative evidence

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