Straight-line to zero over the life of project

Assignment Help Accounting Basics
Reference no: EM13973062

We are evaluating a project that costs $800,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 60,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $800,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project.

Reference no: EM13973062

Questions Cloud

Why is web-based printer access used : If applicable, adhere to APA guidelines when creating in-text citations and references. Your assignment should be free of grammatical errors, use complete sentences and give specific details that support your statements.
Interest on home mortgage and property taxes : Alimony $12,000 Charitable contributions 2,000 Contribution to a traditional IRA (fully deductible) 5,000 Expenses paid on rental property (Rental revenue was included in gross income, not a vacation home) 6,000 Interest on home mortgage and prope..
What are the major types of compassion : What are the major types of compassion? Identify and explain which t) pe is best for compressing an encyclopedia. Identify and explain which type is best for compressing a digital photo of the ocean.
Describe how to add a printer to gigi''s server. : Adhere to APA formatting and reference guidelines when writing your response. Additionally, your response should be free of grammatical errors, use complete sentences, and give specific details to support statements.
Straight-line to zero over the life of project : We are evaluating a project that costs $800,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project.
Interior gateway routing via link-state routing protocols : Which protocol would be the most used in a typical corporate LAN environment, and why?
Analyze the role of accreditation and regulatory agencies : Create a 10- to 12-slide Microsoft PowerPoint presentation that addresses the following: Evaluate what impact local, state, and federal laws have on the health care industry. Analyze the role of accreditation and regulatory agencies in the health car..
Shallow depiction of soul friendships in mainstream films : In this module, we learn about the unhealthy and shallow depiction of "soul friendships" in mainstream films and literature: "Type soulfriends, or even worse "soulmate" into an internet search engine and some of the most syrupy aphorisms on friends..
What are the disadvantages of distance-vector routing : Adhere to APA formatting and reference guidelines when writing your response. Additionally, your response should be free of grammatical errors, use complete sentences, and give specific details to support statements.

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.

  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!

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