What amount should be used as initial cash flow for project

Assignment Help Financial Accounting
Reference no: EM132873286

Question 1: DAYTONA INC purchased a BUILDING ten years ago at a cost of $790,000. Today, that BUILDING has a market value of $1.2 million. At the time of the purchase, the company spent $100,000 to refurbish and another $20,000 to build a small garage on the lot to house additional equipment. DAYTONA now wants to build a new facility on the site. The building cost is estimated at $1.7 million. What amount should be used as the initial cash flow for this project?

Option 1: $2,490,000

Option 2: $2,610,000

Option 3: $2,900,000

Option 4: $3,020,000

Option 5: $3,690,000

Reference no: EM132873286

Questions Cloud

Calculate the unit product cost : Andrews expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. Calculate the unit product cost
How does your selected organization prepare budgets : How does your selected organization prepare budgets? What MRP concepts do you see with regard to your organization?
Prepare an overhead budget for the months of January : Fixed overhead is budgeted at $2,750 per month. Prepare an overhead budget for the months of January, February, and March
Achievement of a company competitive strategy : How do HR policies support the achievement of a company's competitive strategy? Provide two specific business/organizational examples to support your answer
What amount should be used as initial cash flow for project : What amount should be used as the initial cash flow for this project? DAYTONA INC purchased a BUILDING ten years ago at a cost of $790,000.
Determining the types of negotiation : Consider which theory of negotiation - positional/adversarial or collaborative/cooperative
Prepare a direct labor budget for the months of January : The average wage is $18 per hour. Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter
Cost estimate for concrete and structural framing portions : Create a cost estimate for the concrete and structural framing portions of a building project of your choosing.
How do i write persuasive memorandum to an organization : How do I write persuasive memorandum to an organization's electronic medical records implementation team on the following.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much did pay in total

On September 22, The Pineapple Store settles the note by paying the full amount owing plus interest. How much did they pay in total?

  Evaluate the total tax liability

Assuming that Susan has a marginal tax rate of 30%, the net effect of her having this hobby will be to increase her total tax liability by:

  Effective-interest method for discount-premium amortization

Titania Co. sells $406,700 of 12% bonds on June 1, 2014. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2018. The bonds yield 8%. On October 1, 2015, Titania buys back $127,500 worth of bonds for $134,120 (inclu..

  Calculate the discounted payback period

The new machine will produce 1,000 units each year over its 5 year life at a sale price of $100.00. Calculate the Discounted Payback Period

  What is the standard labor cost allowed to prepare

What is the labor rate variance and the labor efficiency variance? What is the standard labor cost allowed (SH × SR) to prepare 4,000 meals?

  What is the amount of the lower cost or market adjustment

BCN, Co. What, if any, is the amount of the lower cost or market adjustment? What is the journal entry to record the adjustment?

  Calculate tyler oil company weighted average cost of capital

Calculate Tyler Oil Company's weighted average cost of capital. The aftertax cost of debt is 7 percent; the cost of preferred stock is 10 percent

  Adjustment for bere company

The trial balance shown below are before and adjustment for BERE Company at the end of its fiscal year.

  Find the firm present weighted average cost of capital

Company's debt is currently yielding 13 percent, and its preferred stock isyielding 12 percent. Compute the firm's present weighted average cost of capital?

  What are the relevant journal entries for indera bhd

Indera Bhd sold, Calculate gross profit realised for the year 2018. What are the relevant journal entries for Indera Bhd on 31 December 2018.

  Earnings per share and acid-test ratio

BEULAH COMPANY Income Statement For the Years Ended December 31 2014 2013 Net sales (all on account) $500,000 $420,000 Expenses Cost of goods sold 315,000 255,000 Selling and administrative 120,000 114,000 Interest expense 8,800 6,200 Income tax expe..

  What is the effective interest rate for the bonds

It cost the company $30,000 in bond issue costs. The bonds were sold at par. What is the effective interest rate for the bonds

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