User Account

All Pages

What is net present value of project for orange ltd

Assignment Help Financial Accounting
Reference no: EM132692106

Orange Ltd. is considering purchasing a new manufacturing plant that costs $500,000. The manufacturing plant will generate revenues of $150,000 per year for ten years. The operating costs needed to generate these revenues will total $75,000 per year. The manufacturing plant will be depreciated on a straight-line basis over ten years to zero. Orange Ltd.'s tax rate is 30 percent, and its cost of capital is 10 percent.

Problem (a) What is the net present value of this project?

Problem (b) Should the company approve this project? Explain why or why not.

Reference no: EM132692106

Questions Cloud

Unstructured interviews for predicting job performances : Explain the fact that structured interviews, regardless of content, are generally more valid than unstructured interviews for predicting job performances
Prepare necessary journal entries in relation to machinery : Prepare the necessary journal entries in relation to the machinery and equipment at 30 June 2020. Narrations are not required.
Global strategy : There are a number of companies utilizing a global business strategy.
Goal setting and measuring success : Build key performance indicators that relate back to business goals for quantitative measures of success.
What is net present value of project for orange ltd : Orange Ltd. is considering purchasing a new manufacturing plant that costs $500,000. What is the net present value of this project?
Which might be reflected in the grocery store contribution : A grocery store wants to encourage customer, Which is not a way this initiative might be reflected in the grocery store's contribution margin income statement?
Calculate the amount of conversion cost per unit : Calculate the amount of conversion cost per unit. Rock Manufacturing produced 10,000 units in 2019 and reported the costs, Sandpaper $32,000
Compute for the amount of cash investment by David : An allowance for doubtful accounts of 3% of accounts receivable is to be established. Compute for the amount of cash investment by David
When can the corporation deduct the expense and why : Assuming the attorney and the corporation both use calendar years, when can the corporation deduct the expense if payment is made in the next year? Why?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd