What decision should be made regarding the project

Assignment Help Financial Accounting
Reference no: EM132499910

A company is considering a project with a total lifespan of 10 years. It will require an immediate outlay of $38 000 and $38 000 outlays for the next two years. At the end of the project, the company expects to salvage the physical assets for $54 000. The project is estimated to yield net returns of $55 000 in Year 3, $40 000 in Year 6, and $6 000 for each of the following 4 years. The required rate of return is 11.6%.

Question 1: What decision should be made regarding the project? Please note, the numbers below represent a decision.

0 = ACCEPT

1 = REJECT

Question 2: Please choose an option using these coded numbers.

Select one:

a. 1

b. 0

Question 3: Cannot make a decision. More information is required.

Reference no: EM132499910

Questions Cloud

What does mean to be a risk-averse versus a risk-taker : What does it mean to be a risk-averse versus a risk-taker? What types of information must be considered when it comes to risk and return? Explain.
What is the current fair share price : XYZ and co. dividends, If the required return is 10 percent and company just paid 2$ dividend, what is the current fair share price?
What quantity will the firm produce : The typical firm in a competitive market has total variable cost of CV = 4Q2 and non-sunk fixed costs of 50 and sunk fixed costs of 30.
Set forth an example of one fixed cost : Set forth an example of one fixed cost that may very well remain fixed over the long run, and explain why it is a long run fixed cost.
What decision should be made regarding the project : What decision should be made regarding the project? Please note, the numbers below represent a decision. choose an option using these coded numbers.
Derive an expression for the monopolist marginal : A monopolist's costs are given by C(Q) = 0.1Q + 2, and it faces the demand function P = 1/Q1/2, where Q denotes quantity of a good.
What is the total value of the cash flow in the final period : What is the TOTAL value of the cash flow in the final period? A company is considering a project with a total lifespan of 10 years. It will require an immediate
What is the value of the parameter a : If the elasticity of demand for good x is minus 0.5 at the price P= $10 and quantity Q = 8000, what is It the value of the parameter b if the demand function
What is the value for cfo : What is the value for CFo? A company is considering a project with a total lifespan of 10 years. It will require an immediate outlay of $38 000

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute basic and diluted earnings per share

Henderson-Niles' net income for the year ended December 31, 2011, is $520 million. The income tax rate is 35%. Henderson-Niles paid dividends of $1 per share on its preferred stock during 2011.

  Find out the ending inventory at its estimated cost

After performing a physical inventory, they calculated theri inventory cost at retail to be 80,000. The mark up is 100% of cost. Find out the ending inventory at its estimated cost.

  What was the company cash flow to stockholders

During the year, the company sold $75,750 in new common stock. What was the company's cash flow to stockholders

  Determine the margin of safety in units-sales dollars

Information concerning a product produced by Ender Company appears here: Determine the margin of safety in units, sales dollars, and as a percentage?

  Examples of a warning signal and related diagnostic symbol

For goods and services that you see produced, what are 3 examples of a warning signal and the related diagnostic symbol you would use to identify quality problems?

  When traditional absorption costing is employed

When traditional absorption costing is employed, which of the following is false? Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performanc..

  Distinguishes tax shelter from tax planning

In 1934, Judge Learned Hand made the statement that a taxpayer, "[M]ay so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to i..

  Calculation of variable cost per unitusing the high-low

calculation of variable cost per unit.using the high-low method what is the variable cost per unit?the nelson company

  Interest and principal to be paid at maturity

Innovate Company borrowed on a one-year, 10%, $150,000 note on May 1, 2014 with interest and principal to be paid at maturity. How much interest should Innovate Company report on its income statement for the year ending December 31, 2015?

  Discuss a quarterly tax payment

These new subscribers will receive monthly issues, beginning in January 2015.

  Company has net income

A company has net income of $500,000, net sales of $11,000,000, and average total assets of $5,800,000. Its return on total assets equals:

  Calculate ending inventory

Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit-Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

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