What is the net present value if the cost of capital

Assignment Help Financial Accounting
Reference no: EM13790091

Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the teachers useful life, the salvage value of the tractor is expected to be $5000.

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.) Round your answer to the nearest whole number.

Reference no: EM13790091

Questions Cloud

What is one reason the new constitution would be opposed : what is one reason the new Constitution would be opposed? People are interested in everyone being granted equal status.
Instead of effective-interest method to amortize discount : On January 2, 2015, Nast Co. issued 5% bonds with a face amount of $600,000 that mature on January 2, 2025. The bonds were issued to yield 6%, resulting in a discount of $44,630. Nast incorrectly used the straight-line method instead of the effective..
What is the reputation of a defendant : What is the reputation of a defendant and how do you prove it in a criminal trial? What are some important factors in considering the character of a witness
Investment generates equivalent annual cash flow : The Happy Day Care Center is considering an investment that will require an initial cash outlay of $300000 to purchase non depreciable assets that have a 10-year life. The organization requires a minimum 4-year payback. Assume that the investment gen..
What is the net present value if the cost of capital : Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the teachers useful life, the salvage value of the tractor is expected to be $5000. ..
Why is it important to align an organizations strategic goal : Why is it important to align an organization's strategic goals to human capital competencies and how can this alignment contribute to a competitive workforce?
Identify the methods of reporting cash flow : Explain the purpose of the statement of cash flows. Identify the methods of reporting cash flow and the various types of activities and transactions that affect cash flow. Assuming cash flow continues to increase, explain whether there are circumstan..
National environmental protection act : Discuss whether you feel that this particular environmental law has improved the environment or situation. Why or why not?
Incorporate the transferable skills : Discuss the ways that you are going to incorporate the transferable skills (the transferable skills that you showcased in your exemplary project) into your work within your chosen career field.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Net income and earnings per share

Evaluate each of the following for every alternative Net income and Earnings per share.

  Explain how much are you willing to pay to buy a share

the company plans on paying a constant $0.75 a share annual dividend indefinitely. Explain how much are you willing to pay to buy a share of this stock today if your required return is 11.6 percent?

  What should lowman do and what are the issues at hand

Willie Lowman is the internal auditor for Dead Salesman Printing, a book printing company. In the book printing business, a printer is constantly distributing books then taking books back in return. From an accounting perspective, the company is cons..

  Interest rate to fund his retirement goal

George Just hit the jackpot in Las Vegas and won $55,000! if he invests it now, at a 12% interest rate, how much will it be worth 15 years from now? Zach would like to have $4,000,000 saved by the time he retires 40 years from now. How much does he n..

  Cost profit analysis in case of new equipmentbest company

cost profit analysis in case of new equipment.best company has the opportunity to expand capacity of current

  Should exchange transactions be accounted for differently

should exchange transactions be accounted for differently than contributions? in december 2 01 4 the consumer

  Illustrate what is the required journal entry as a result

The attorneys estimated that there is a 40 % chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $500,0000. Illustrate what is the required journal entry as a result of this litigation?

  Illustrate what is annual cash operating saving expected

A company can acquire a $700,000 machine now that will benefit the the company over the next 5 years, with a net present value of $134,000 using a 10% hurdle rate. Based on this information, illustrate what is the annual cash operating savings ex..

  Describe the tax aspects of each arrangement

Beige Company has approximately $250,000 in net income in 2011 before deducting any compensation or other payment to its sole owner, Janet (who is single). Assume that Janet is in the 35% marginal tax bracket. Describe the tax aspects of each of t..

  Budgeted cash receipts for april

Budgeted cash receipts for April, Calculation of budgeted cash collections and Budgeted purchases of raw materials sales for May

  Compute the average cost per serving at each

Compute the average cost per serving at each of the following monthly volumes: 1,500; 2,000; 3,000; and 5,000, and find out the monthly volume at which the average cost per serving is $1.00.

  Compute the actual and budgeted contribution margins

Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2012 and calculate the actual and budgeted sales mixes for the three products for the third quarter of 2012.

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