User Account

All Pages

What is the intrinsic value of the factory to the investor

Assignment Help Financial Accounting
Reference no: EM132929486

Problem 1: A factory is expected to generate $3,000,000 per year every year for the next twelve years. An interested investor uses a required rate (discount rate) of 11.25%. What is the intrinsic value of the factory to this investor. (solve for present value of an annuity)

a. 19,247,271.61
b. 19,133,220.55 Present Value of an Annuity
c. 18,976,457.88
d 18,865,311.09

Reference no: EM132929486

Questions Cloud

Potential conflicts of ownership between organization : This can apply to potential conflicts of ownership between the organization and individuals, or between organizations and contractors.
What amount of premium on bonds payable is recognized : On January 1, 2020, the Blue Company issued P4,000,000 bonds. What amount of premium on bonds payable is recognized on January 1, 2020
Impact of incorrect job data being used for decision making : Human Resource management consultant Elena Goran and partner, Byron Wood, were contacted by a public-sector union for assistance on a job evaluation issue they
Calculate the annual payment of company a : Company A to pay the loan back over five (5) years. If Bank C lends the money to Company A for this five (5) year loan at 5%, Calculate the annual payment
What is the intrinsic value of the factory to the investor : What is the intrinsic value of the factory to this investor. A factory is expected to generate $3,000,000 per year every year for the next twelve years.
What would be an example of infective training : What would be an example of infective training, what three principles of motivation might be ignored, and how were they ignored in infective training?
Technology-Critical Thinking And Criminal Justice : Identify ways that technology can aid in minimizing bias and generalizing. Provide at least 1 example of specific technology that could be applied.
Generate manager training-professional development session : Our discussion for this week regards employment laws that deal with complex concepts such as discrimination and harassment.
B01CLAWL314 Corporate Law Assignment : B01CLAWL314 Corporate Law Assignment Help and Solution, Kent Institute - Assessment Writing Service - Demonstrate a working knowledge and understanding

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute smart expected rate of return

Compute SMART's expected rate of return. Issue $15 million of 20-year bonds at a price of $101, with a coupon rate of 8%, and flotation costs of 2% of par.

  What is the amount of over- or underapplied overhead

Calculate the predetermined overhead rate for 2012, assuming Deglman Manufacturing estimates total manufacturing overhead costs of $980,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year.

  Inventory balances at the end of first month of operations

The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors: Prepare the January 2016 income statement for Video Wave Manufacturing Company. Refer..

  Prepare the stockholders equity section of balance sheet

Early in 2015, Herndon Industries was formed with authorization to issue 250,000 shares of $10 par value common stock and 30,000 shares of $100 par value cumulative preferred stock. Prepare the stockholders’ equity section of the balance sheet (use e..

  What is the amount of yearly annuity payment

If a 6-year regular annuity has a present value of $4,000, and if the interest rate is 5%, then what is the amount of yearly annuity payment?

  Crockett construction company

Crockett Construction Company purchased a five-acre tract of land with an existing building for $1,500,000. The company plans to remove the old building and construct a new building o the site.

  What amount should gillard record for the sale

At the date of sale, the spot rate was CHF1 = $1.0329. The spot rate at March 1, 20X6, was CHF1 = $1.0287. What amount should Gillard record for the sale

  How items will be treated in the interim report

You are required to discuss how the above items will be treated in the interim report for the year ended 30 November 2020 and 31 May 2021.

  Identify and describe the three tools of financial statement

Identify and describe the three tools of financial statement analysis. Perform each of the three types of analysis on Drew Carey's current assets.

  Prepare vertical common-size financial statements

Prepare vertical common-size balance sheets and income statements for both companies.

  How much money have you accumulated for your retirement

You are going to withdraw $75,340 every year at the beginning of the year for the next 19 years starting from today. How much money have you accumulated

  What kind of account in quickbooks

Accumulated depreciation' is typically what kind of account in QuickBooks? A subaccount of a fixed asset account. / a subaccount of a liability account

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