What is the net present value

Assignment Help Accounting Basics
Reference no: EM131692705

Question - NPV: No salvage value or taxes

Kim Johnson purchased an asset for $80000. Annual operating cash inflows are expected to be $30000 each year for four years. At the end of the asset life, Kim will not be able to sell the asset because it will have no salvage value.

Required - What is the net present value if the cost of capital is 12 per cent (ignore income taxes)?

Reference no: EM131692705

Questions Cloud

Indicate the number of operands for instruction : Assign opcodes and indicate the number of operands for each instruction. When your instructions are stored in memory
Reflect on insights you had while creating the rubric : Reflect on insights you had while creating the rubric and while evaluating your own performance using the rubric
Digital technology is a threat to our privacy : Which threats worry you the most about digital technology in your life and why? Have you worked on mitigating these threats? How?
Explain why it might be a good idea for owners : De?ne the concept of scalability. Explain why it might be a good idea for owners of small businesses-and managers in larger businesses-to understand
What is the net present value : Kim will not be able to sell the asset because it will have no salvage value. What is the net present value if the cost of capital is 12 per cent
Identify the organization and its mission : Identify the organization and its mission. Describe how the organization is working toward improving its crisis intervention response.
Distinguish between full content data : Distinguish between full content data (including collection tools), session data (including collection tools) and statistical data (including collection tools).
Discuss what market research techniques : What market research techniques do you think is most effective and least effective. Are there conditions under which some market research techniques work better
Identify the signs that are key indicators of burnout : Identify the signs that are key indicators of burnout. Explain the levels or stages of burnout that the interviewee experienced.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Research the history of process costing in the united

research the history of process costing in the united states. when did it begin to be used in manufacturing companies?

  What residual income will it earn

If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year

  Warranty expenditures throughout the year

In the current year, Hanna Company reported warranty expense of $190,000 and the warranty liability account increased by $20,000. What were warranty expenditures during the year?

  Construct t-accounts and enter the balances shown

Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.) Open additional T-accounts as necessary. (The books are closed yearly on December 31.)

  What is the purpose of monthly review of actual experience

What is the purpose of monthly review of actual experience against the annual budget of the facility?

  Marios incorporated is in the process of selecting a

marios incorporated is in the process of selecting a production machine between two alternatives. marios cost of

  In what section of the balance sheet should a note

In what section of the balance sheet should a note receivable be listed if its term is (a) 90 days, (b) six years?

  Determine a cost formula for utilities cost

Determine a cost formula for utilities cost using the least-squares regression method. Calculate the R2 as part of your analysis.

  How to prepare a cash budget for october and november

Fabrice Corp. requires a minimum $6,200 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly).

  Contemporary line of cabinets

The Carolina Furniture Company manufactures kitchen cabinets. The company has always used direct labor cost to allocate overhead to its two cabinet lines, Heritage and Contemporary.

  Hunter and warren form tan corporation

Hunter and Warren form Tan Corporation. Hunter transfers equipment (basis of $210,000 and fair market value of $180,000), and Warren transfers land (basis of $15,000 and fair market value of $150,000) and $30,000 cash. Each receives 50% of Tan'..

  Mecca concrete purchased a mixer on january 1 2011 at a

mecca concrete purchased a mixer on january 1 2011 at a cost of 75000. straight-line depreciation for 2011 and 2012 was

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