What about a project that has a negative npv

Assignment Help Accounting Basics
Reference no: EM132729563

Problem 1: When a project has a negative net present value (NPV), the project should be rejected. This is the present value rule. That being said, do you believe there may be some instances in which qualitative aspects of a project take precedence over the financial calculations? For example, what about a project that has a negative NPV but would result in decreased competition?

Reference no: EM132729563

Questions Cloud

What was cant spell free cash flow : During 2015, Can't Spell Industries reported cash provided by operations of $21,050, cash used in investing of $16,900. what was Can't Spell's free cash flow?
How many times activity will run : Identify all the individual CRM activities you will implement within a one-year time frame - How many times activity will run
What is the value of cost of goods sold : Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales: What is the value of cost of goods sold
Conducting organizational assessment : The success of an organization depends heavily on its structure, strategies, and culture.
What about a project that has a negative npv : When a project has a negative net present value (NPV), What about a project that has a negative NPV but would result in decreased competition?
What the journal entry that Jepson will make on September : Jepson uses the periodic inventory system and the gross method of accounting for purchases. What the journal entry that Jepson will make on September 12
Find what is amount of net cash flow from financing activity : Received cash revenues from customers for $50,000. Find what is the amount of the net cash flows from financing activities on Behren's cash flow statement?
Physiological and psychophysical approaches : Compare and contrast the biomechanical, physiological, and psychophysical approaches.
How do compute what is the year one cash flow : Compute What is the Year 1 cash flow? Revenues and other operating costs are expected to be constant over the project's 10-year expected life.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Analyze governmental activities related to expenditures

Analyze governmental activities related to expenditures and expenses

  Determine the correct amount of inventory

Hastings purchased $20,000 of goods that were shipped on December 27. FOB destination, that will be received by Hastings on January 3. Determine the correct amount of inventory that Hastings should report.

  Discuss whether Robbins is acting in an ethical manner

Discuss whether Robbins is acting in an ethical manner. How could Barrow renegotiate the partnership agreement to avoid this dispute

  Nevada mines purchased a piece of land and the mineral

nevada mines purchased a piece of land and the mineral rights for 3200000. company engineers that the property contains

  The cost method recognize the precision

The cost method recognize the precision and salon are separate legal entities

  Transferred inventory to a corporation

Evan Erman transferred inventory to a corporation in a Code Sec. 351 transaction. His basis in the inventory was $10,000 and its value was $8,000. If he received $2,000 in cash and 100 shares of stock, the resulting bases are:

  Determine the payback statistic for project a

Determine the payback statistic for Project A and recommend whether the firm should accept or reject the project with the cash flows shown

  Calculate annual depreciation after the estimate change

Applying the same accounting principles from one reporting period to another enhances the comparability of accounting information across accounting periods. The FASB's conceptual framework describes consistency as one of the important qualitative ..

  What is the current market value of bond

5-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of bond

  Detrimental effects on process capacity

How does this wok cleaning affect the process capacity? If the process capacity does not change due to the cleaning requirement, explain why and if it does, explain two ways to eliminate any detrimental effects on process capacity during the lunch..

  What is the contribution margin per unit

XYZ Company sells 10,000 units for revenue of $500,000. Fixed costs are $100,000 and variable costs are $200,000. What is the contribution margin per unit

  The following selected accounts and account balances

The following selected accounts and account balances were taken from the records of Bates Company.

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