What is the annual worth of this project

Assignment Help Accounting Basics
Reference no: EM132708742

Question - Margaret has a project with a £ 25,000 first cost that returns £ 4,400 per year over its 10-year life. It has salvage value of £ 2,700 at the end of 10 years. If the MARR is 8 %, (Use 5 significant figures for your calculations, and round your answers to the nearest dollar. Indicate losses as a negative value.)

Required -

(a) What is the present worth of this project?

(b) What is the annual worth of this project?

(c) What is the future worth of this project after 10 years?

Reference no: EM132708742

Questions Cloud

Identify consequences of unethical public administration : With illustrations, identify the consequences of unethical public administration practices (e.g. maladministration, nepotism, corruption, inefficiency etc...)
What are the distinguishing features of investment companies : What are the distinguishing features of investment companies (not investment banks) on their balance sheet/income statement relative to other Financial
What effect on wilma financial statements for march : As at March 31, Wilma had recorded the transaction as a purchase, What effect on Wilma's financial statements for March 31 would be
Explain the concept of transparency : Explain the concept of transparency. What are the benefits of formulating and implementing public policies in a transparent manner? Illustrate with examples
What is the annual worth of this project : Margaret has a project with a £ 25,000 first cost that returns £ 4,400 per year over its 10-year life. What is the annual worth of this project
What was the firm times interest earned ratio : What was the firm's times interest (tie) earned ratio? Sinkabible corp's sales last year were $435,000, its operating costs were $350,000
Pass the necessary entries on June : The group measures its property plants and equipment using a costs model. Pass the necessary entries on 30 June 2017 and 30 June 2018
How much would have to pay monthly for the car : How much would have to pay monthly for the car you want to buy if the cost of the car is $ 30,000 and they finance it at 5.75 compound interest
Explain the concept of transparency : Explain the concept of transparency. What are the benefits of formulating and implementing public policies in a transparent manner? Illustrate with examples

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