Vanessa company is evaluating a project requiring a capital

Reference no: EM13582020

Vanessa Company is evaluating a project requiring a capital expenditure of $480,000. The project has an estimated life of 4 years and no salvage value. The company's minimum desired rate of return for net present value analysis is 15%. The present value of $1 at compound interest of 15% for 1, 2, 3, and 4 years is .870, .756, .658, and .572, respectively.

Determine the average rate of return on investment, using straight line depreciation, and (b) the net present value.
a. The average rate of return on investment, using straight line depreciation:
b. The net present value:

Reference no: EM13582020

Questions Cloud

Briefly describe what the histogram and the stem-and-leaf : visit the australian bureau of statistics website and get the catalogue 6302.0 average weekly earnings australia. you

Tipper co is considering a 10-year project that is : tipper co. is considering a 10-year project that is estimated to cost 700000 and has no residual value. tipper seeks to

Determine a present value factor for an annuity of 1 which : the internal rate of return method is used to analyze a 946250 capital investment proposal with annual net cash flows

Before proceeding check the hint given at the end of the : the board of education for the central catskill school district is considering the acquisition of several minibuses for

Vanessa company is evaluating a project requiring a capital : vanessa company is evaluating a project requiring a capital expenditure of 480000. the project has an estimated life of

Define a plan to add more value to starbucks company make : define a plan to add more value to starbucks company? make a case study to this company to make benefits tocustomers

Assume that a population is normally distributed with a : assume that a population is normally distributed with a mean of 100 and a standard deviation of 15. would it be unusual

A 550000 capital investment proposal has an estimated life : a 550000 capital investment proposal has an estimated life of four years and no residual value. the minimum desired

At a distance of 15 m the potential is 40 v and the : a long the axis of a uniformly charged disk at a point 0.6 m from the center of the disk the potential is 80 v and the

User Account

All Pages