User Account

All Pages

What is the IRR for this project

Assignment Help Financial Accounting
Reference no: EM133022433

Question - Your firm is contemplating the purchase of a new $605,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $89,000 at the end of that time. You will save $188,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $104,000 (this is a one-time reduction). If the tax rate is 21 percent, what is the IRR for this project?

Reference no: EM133022433

Questions Cloud

Prepare a statement of owner equity for the year : Prepare a statement of owner's equity for the year ended December 31, 2020. Assume there have been no changes to the capital account since January 1
Explain the missions of three government agencies : Explain the missions of at least three government agencies involved in securing the United States. The explanation should include, Agency mission, Agency capabi
Create new jobs as well as improve existing ones in africa : Explain 4 points on how Technology can create new jobs as well as improve existing ones in Africa
Storage temperature requirements : Locate at least two stock date codes and two rotation labels on poultry in your training kitchen's stores or workplace and take a photo.
What is the IRR for this project : Question - Your firm is contemplating the purchase of a new $605,000 computer-based order entry system. What is the IRR for this project
Design and develop a learning strategy : Design and develop a learning strategy for your organisation. Write a brief summary of the evaluation including a description of the technology and software
What are the nature of buyer-supplier relationships : Taking the context of the Volkswagen, what are the nature of buyer-supplier relationships?
Learning and transfer of training problems : How might distance learning be designed and used to avoid some of the learning and transfer of training problems of the traditional lecture method?
What is an efficient portfolio : What is an efficient portfolio? How can standard deviation, a statistical measure of dispersion, be used in investment analysis

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find what is amount of investor ltd investment in associate

At 30 June 2019, Investor Ltd, Using the equity method, what is the amount of Investor Ltd's investment in Associate Ltd at 30 June 2020?

  Calculate the new weighted average cost of capital

The EllyMelly Textile is considering new project, Discuss other methods that can be used to calculate new weighted average cost of capital for EllyMelly Textile

  Find impairment of goodwill as at march

Determine Impairment of goodwill (if any) as at 31 March 2020 and Non-controlling interest as at 31 March 2020 and Goodwill at acquisition

  Prepare the operating activity section of the statement

Prepare the operating activity section of the statement of cash flows. (Note: you will need to calculate net income through T account analysis.)

  How to calculate the non-controlling interest as at june

Calculate the non-controlling interest as at 30 June 2019. Prepare the necessary journal entries to recognise the non-controlling interest as at 30 June 2019.

  Prepare an operating budget for one of computech departments

Prepare an operating budget for one of CompuTech's departments for 2014. In 2013, the department sold 5,400 units and the retail sales price per unit was $6.00.

  Find what calculation methods can the company apply

Find What calculation methods can the company apply to allocate the costs to a calculation object. Also discuss the pros and cons between the options.

  Compute how would allocate the additional

Determine how you would allocate the additional $5M. Are there other areas to which to spend the money not mentioned in the above facts?

  Prepare the journal entry for issuance of the bonds on june

On June 1, 2018, Eiffel decided to retire 20% of the bonds. Prepare the journal entry for the issuance of the bonds on June 1, 2016

  Explain how cost-volume-profit analysis

Review the Chapter opener. Johnny Cupcakes, launched by entrepreneur John Earle, produces t-shirts in unique styles and limited quantities. Selling prices typically range from $40 per shirt to $70 per shirt.  Identify at least two fixed costs that wi..

  Would you be in favour of a price increase

Calculate a value in response to the following: Unhappy about the prospect of a price increase, Blake's sales manager would like data regarding the number of units that must be sold at the former price to earn the £200,000 profit.

  Compute the average number of collection days

Compute the average number of collection days. (Do not round intermediate calculations, round your answer to two decimal places, i.e. 12.34)

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