User Account

All Pages

What is the net present value

Assignment Help Accounting Basics
Reference no: EM132013513

Problem - Basic NPV with Salvage Value

Redwood Orchards Organics purchased a new composter at a cost of $88,000. Annual operating cash inflows are expected to be $35,000 each year for four years. At the end of the composter's useful life, the salvage value of the tractor is expected to be $4,000.

Required: What is the net present value if the cost of capital is 12 percent? Use the time value of money charts for your calculations. (Ignore income taxes.)

Reference no: EM132013513

Questions Cloud

Establish and assign responsibility for recording systems : Why is it important to establish and assign responsibility for recording systems that will track continuous improvements of sustainability approaches?
Explain what tools you would use to educate your stakeholder : Explain what tools you would use to educate your stakeholders on the results you have received from analytics.
Strategic management process : In a constantly and rapidly changing environment, developing and implementing a competent strategic plan is central to organization stability and viability.
Define the price elasticity of demand : Define the price elasticity of demand? What information does it provide? How is it calculated? Define the income elasticity of demand?
What is the net present value : Redwood Orchards Organics purchased a new composter at a cost of $88,000. What is the net present value if the cost of capital is 12 percent
What is a qualitative variable : What is a qualitative variable? Give an example. What is a quantitative variable? Give an example.
What is data in correlation to business statistics : What is data in correlation to business statistics? Is it difference from information? What is needed for business decision-making? Data, information or both?
Explain what is continuous improvement : Explain what is continuous improvement and how to apply it to resource efficiency?
Roles and responsibilities with regard to implementation : How can employees be informed about their roles and responsibilities with regard to implementation, activities to be undertaken, and the expected outcomes?

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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