The interest rate is compounded annually

Assignment Help Financial Accounting
Reference no: EM13146823

A manufacturing firm is seeking a loan of $ 200,000 to finance production of a newly patented production line. Owing to good reception of the product at its introductory showing, a bank had agreed to loan the firm an amount equal to 90% of the present worth of firm orders received for delivery during the next 5 years. The orders received are 25,000 for the 1st year, 20,000 for the 2nd year, 15,000 for the 3rd year, 10,000 for the 4th year, and 5,000 for the 5th year. If the product will sell for $4 each, will the present worth of the orders received justify the loan required? The interest rate is 12% compounded annually.

Reference no: EM13146823

Questions Cloud

Match the following antiviral drugs to their mode of action : Many antiviral drugs are analogs of nucleosides and nucleotides, yet eukaryotic cells can incorporate these into DNA and RNA. Why are they selectively more toxic to viruses?
Define what is the magnitude of the electric field amplitude : What is the magnitude of the electric field amplitude associated with the beam and the corresponding photon density per cm3?
Differences between metals and nonmetals : Asteroids are mainly composed of metals like iron and nonmetals like carbon. Explain at least three differences between metals and nonmetals, and describe the locations of metals and non-metals within the periodic table. Specifically use iron and car..
Identify and comment on two supply-side initiatives included : Based upon your own Internet research, identify and comment on two supply-side initiatives included in the current U.S. stimulus package. Ensure your response includes one strength and one weakness in each of these initiatives.
The interest rate is compounded annually : The orders received are 25,000 for the 1st year, 20,000 for the 2nd year, 15,000 for the 3rd year, 10,000 for the 4th year, and 5,000 for the 5th year. If the product will sell for $4 each, will the present worth of the orders received justify th..
What is the new tempurature : A gas in a sealed container has a pressure of 125 kPa at a tempurature of 30.0 degrees celcius. If the pressure in the container is increased to 201 k Pa, what is the new tempurature?
What is the alternative drug used to treat this condition : A 60 year old female was admitted to the hospital for an abdominal aortic aneurysm repair. The patient did welll intraoperatively and was recovering nicely for the first five days post-operation.
Consider a distillation column that is fed : Consider a distillation column that is fed 1000 kg/hr of an equimolar mixture of benzene and cyclohexane. Theof the benzene distillate stream is to contain 90 % with a benzene mole fraction of 0.95.
What is the approximate ph of a solution : What is the approximate pH of a solution prepared by adding 20 mL of 0.10 M NaOH to 200 mL of 0.10 M HCl?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the inventory period

garnishes, inc has sales for the year of $46,300 and cost of goods sold of $21,700. the firm carries an average inventory of $4,800 and has an average accounts payable balance of $4.400. what is the inventory period?

  Calculate home depot times interest earned

Home Depot's income before interest expense and income taxes was $5,909 million, and interest expense was $37 million. Calculate Home Depot's times interest earned.

  Illustrate what would be change in miller operating profits

Assume that Miller is operating at full capacity. If Miller were to accept Brisbois’ offer, illustrate what would be the change in Miller’s operating profits?

  Illustrate what is the maximum amount of before-tax salary

Lara's employer has a 40 percent marginal tax rate. Ignoring payroll taxes, illustrate what is the maximum amount of before-tax salary Lara would give up to receive health insurance?

  Cost flow assumptions

Cost flow assumptions - FIFO and LIFO using a periodic system. Mower Blowers coy started business on Jan 20, 2009. Products sold were snow blowers and lawn mowers. Each product sold for $350

  Illustrate what is the company total tax liability

Illustrate what is the company's total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios?

  Compute the gain or loss on disposal for financial report

Compute the gain or loss on the disposal for financial reporting purposes. Explain how the gain or loss would be reported in the company’s income statement.

  Evaluate smiths tax expense for the year ending

Evaluate smith's tax expense for the year ending 31 st December, 2012? Evaluate smith's tax liability for the year ending 31 st December, 2012?

  Do the benefits of sox justify costs

You have to prepare a 5-page cost/benefit analysis of the Sarbanes-Oxley Act. The focus of the paper should answer the subsequent

  Determine labor efficiency variance

Determine labor efficiency variance

  Preferred stock is nonparticipating and cumulative

Preferred stock is nonparticipating and cumulative and Preferred stock participates up to 12 percent of its par value and is cumulative

  Explain why do you think larry stone wants to estimate

Explain why do you think larry stone wants to estimate the firm's hrdle rate? Is it justifiable to use the firm's weighted average cost of capital as the divisional cost of 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