What is the approximate net present value

Assignment Help Accounting Basics
Reference no: EM132613656

Questions -

Q1) The minimum required rate of return for a project is the:

A. annual rate of return.

B. accounting rate of return.

C. cost of capital.

D. internal rate of return.

Q2) The formula for budgeted direct materials purchases is:

A. Budgeted production units + Ending direct materials inventory - Beginning direct materials inventory

B. Budgeted production units + Beginning direct materials inventory - Ending direct materials inventory

C. Materials needed for production + Ending direct materials inventory - Beginning direct materials inventory

D. Materials needed for production + Beginning direct materials inventory - Ending direct materials inventory

Q3) Hiawatha Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6 year life. There is no salvage value for the equipment. If the cost of capital is 7%, what is the approximate net present value? Ignore income taxes.

A. $53,300

B. $24,580

C. $900,000

D. $300,000

Reference no: EM132613656

Questions Cloud

Discuss the key principles of accrual accounting : Discuss the key principles of accrual accounting and double-entry bookkeeping and the way in which they affect budgeting and the monitoring of budget outcomes.
How two contracts should be presented in turner sister : Only contract A's performance obligation is satisfied over time. Show how two contracts should be presented in Turner Sister's financial statements for 2019.
Directions for the current event : Directions for the current event: Find a current example (less than two years old) related to purchasing/menu planning or costing, etc.,
Provide all required journal entries for the current year : Using the periodic inventory system, provide all required journal entries for the current year including the December 31 year-end entry.
What is the approximate net present value : There is no salvage value for the equipment. If the cost of capital is 7%, what is the approximate net present value? Ignore income taxes
What that teach us as a security professional : By October of 2017, Yahoo estimated that 3 billion user accounts were compromised. Users' passwords in clear text, payment card data and bank information were.
Provide all the journal entries for the events : Provide all the journal entries for the above events. Hint: you need four journal entries. On December 18, 2019, the shares were sold for $19,100.
What fail securely means : The Open Web Application Security Project (OWASP) provides a distillation of several of the most well known sets of computer security principles.
Prepare the acquisition of bonds on december : Prepare the Acquisition of bonds on December 31, 2019 and Receipt of interest on June 30, 2020 four journal entries for Pluto.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Demonstrate your understanding of the material covered

Additional sources should be used to support your major points and/or positions

  Berg company incurs 320000 overhead costs each year in its

berg company incurs 320000 overhead costs each year in its three main departments setup 20000 machining 220000 and

  What was the net revenues amount for these two transactions

If both customers paid for the plumbing services within the discount period, what was the net revenues amount for these two transactions

  Compute the number of shares to be used in diluted earnings

Compute the number of shares to be used in determining diluted earnings per share for 2018. Dunbar Company had 470,000 shares of common stock outstanding

  Debra manufacturing has identified that the cost of a new

debra manufacturing has identified that the cost of a new computer will be 120000 but with the use of the new computer

  Imagine that youre the owner of a thriving high-end blue

imagine that youre the owner of a thriving high-end blue jean manufacturer. demand for your jeans is growing at

  Consigned inventory for which bedrock was the consignor

The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was the consignor

  What will be your monthly payment

If your interest rate is fixed at 5.00% APR with monthly compounding and you repay the loans over 10-year period, what will be your monthly payment

  Which entity prepares consolidated worksheet

Beta Corporation acquired 100 percent of the voting shares of Yang Inc. by issuing 10,000 new shares of $10 par value common stock with a $40 market value.

  How much cash is budgeted to be paid in september

Jared can borrow cash in increments of $1,000. How much cash is budgeted to be paid in September for operating costs

  Why is it so important that variance reports be prepared

Why is it so important that variance reports be prepared in a timely manner?

  Compute operating cash flows for a project that is

compute operating cash flows for the followinga. a project that is expected to have sales of 10000 expenses of 5000

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