What is npv if funds earn twelve per cent

Assignment Help Accounting Basics
Reference no: EM132700833

A small industrial machine costs $114,000 and is expected to earn annual net cash inflows of $50,200, $45,600, $41,000 and $36,500, before it wears out sufficiently to be unreliable and must be sold for an estimated $11,400.

Problem (a) If funds earn 12 per cent, what is its NPV? (Round answer to 0 decimal places, e.g. 1,525.)

Reference no: EM132700833

Questions Cloud

Prepare a memo for photo artistry company : Prepare a memo for Photo Artistry Company identifying issues that management should consider in order to improve the profitability of the company
What is the balance of the accounts payable control account : Sandhill Company uses both special journals, What is the balance of the Accounts Payable control account after the monthly postings on July 31?
What is the balance of accounts receivable control account : Sandhill Company uses both special journals, What is the balance of the Accounts Receivable control account after the monthly postings on July 31?
Determine the carrying amount of the building as at june : Determine the carrying amount of the building as at June 30, 2023 and 2024, if the company used the cost method to account for the building.
What is npv if funds earn twelve per cent : A small industrial machine costs $114,000 and is expected to earn. If funds earn 12 per cent, what is its NPV? (Round answer to 0 decimal places, e.g. 1,525.)
When and how did the problem actually first start : When and how did the problem actually first start? (Its etiology). When did people start noticing there was an environment-related problem in the community?
Record adjusting entries required at december in connection : On November 15, 2020, Evergreen Inc. purchases. Record any adjusting entries required at December 31, 2020 in connection with the above transactions.
Calculate the cost of the plant : Calculate the cost of the plant including flotation costs.
What are the periodic monthly payments : We borrow $450,000 from a bank to purchase a house. The loan is for 30 years (payments are monthly) and the fixed interest rate charged is 5.25%.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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