What is the net present value of the project

Assignment Help Accounting Basics
Reference no: EM132717871

Problem - A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project, assuming an 11% required rate of return?

a. $(38,214)

b. $8,653

c. $55,180

d. $75,000

Reference no: EM132717871

Questions Cloud

Calculate taxable income and taxes payable : For the year ended December 31, 2020, Coronado Ltd. reported income before income taxes of $96,000. In 2020, Coronado Ltd. paid $48,000 for rent.
Determine the average rate of return for a project : Determine the average rate of return for a project that is estimated to yield total income of $170,000 over five years, has a cost of $320,000
Digital threats to it networks and computing devices : Explain step by step the operation of DES explain with diagram and references and explain the various digital threats to IT networks and computing devices
Benefits and drawbacks of each valuation method : Explain the benefits and drawbacks of each valuation method, and describe whether method is more beneficial in analyzing for-profit or nonprofit organization
What is the net present value of the project : A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project
What is the current price of the bond : A German bond that pays annual coupons of 4.5%, has a par value of €1,000, and a YTM of 3.9%. Assuming there are 19 years until maturity.
Find how many dogs must chrom sell : To achieve an operating income of $60,000 how many dogs must Chrom sell? Like Link, Chrom sells pizza-on-a-stick at the beach. But Chrom also sells dogs-in.
How much will contract be worth at end of the second year : A construction firm has a contract that has $10,000 due today, January 1, and then requires a payment of $5,000 at the end of the year and $15,000.
Which project provides the greater net present value : Acme Company is evaluating two projects with unequal lives. Project 1 requires original investment of $50,000. Which project provides greater net present value

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain how financial leverage impacts the return on equity

Explain how financial leverage impacts the return on equity ratio.

  What would be the amount of depreciation expense

Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost $830,000.

  How much interest is paid at each interest payment date

On January 1, 2021, $1100000, 5-year, 5% bonds, were issued for $1053080. How much interest is paid at each interest payment date

  The trial balance of dynamite laundry at july 31 2006 the

the trial balance of dynamite laundry at july 31 2006 the end of the current fiscal year and the data needed to

  An investor purchased 500 shares of common stock 25 par for

1. partners c and d each have a 40000 capital balance and share income and losses in a 32. cash equals 20000 noncash

  Calculate the break-even point in units

Using the formula, perform the CVP analysis of Sportz Watch: Forecast sales volume (units) 12 000. Calculate the Break-even point in units

  Prepare an income statement for year using variable costing

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2015. Prepare an income statement for year using variable costing

  Explain the rationale for recognizing costs as expenses at

explain the rationale for recognizing costs as expenses at the time of product sale. what is the rationale underlying

  What is the minimum acceptable price

Jeremy's Desks is approached by Mr. Harry Hood, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers.

  The service life of certain equipment was changed

The service life of certain equipment was changed from 8 to 5 years. If a 5-year life had been used previously, additional depreciation of $425,000 would have been charged.

  Explain the client taxable income payable

Advise the client of their current tax obligations, and that any advice that they may receive from taxation authorities is to be followed.

  Define consolidated statement of comprehensive income

What amount did Apple report as "Other comprehensive earnings" in its consolidated statement of comprehensive income ending September 27, 2014?

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