What is the net present value of this product

Assignment Help Accounting Basics
Reference no: EM131928234

Question - If a company has a 16% discount rate, how do you use this for coming up with the net present value of a product with an initial investment of 170000?

Initial investment $170,000

The sales revenue is $250,000

Variable expenses is $120,000

Depreciation expense $34,000

Fixed out-of-pocket expense $70,000

What is the net present value of this product?

Reference no: EM131928234

Questions Cloud

Record the foregoing transactions and adjustments : Question - Journal Entries for Accounts and Notes Receivable. Record the foregoing transactions and adjustments in general journal form
What does the negative amount of present value mean : What does the negative amount of present value mean? Does this investment require a purchase amount or do you get this much money at the beginning?
How movement in the bond price across time is important : Graph the resulting movement in the price across time using the resulting values. Explain how this movement in the bond price across time is important.
How much overhead cost would be assigned to product : How much overhead cost would be assigned to Product N79A using the company's activity-based costing system?
What is the net present value of this product : If a company has a 16% discount rate, how do you use this for coming up with the net present value of a product with an initial investment of 170000
Develop real-world scenario to match theoretical investment : Come up with an investment (i.e., a series of cash inflows and outflows) that has an NPV curve with a positive slope, i.e., the NPV increases as rates increase.
How much must the lakeland symphony have in sales : The Lakeland Symphony would like to perform for a neighboring city. How much must the Lakeland Symphony have in sales dollars to earn a profit of $7,350
How many years will it take to reach your goal : You have $42, 180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000.
Prepare an income statement for shannon company : Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the breakeven point in units

Alpha selling price is $100 per unit, variable cost is $50 per unit and fixed cost is $2,500. What is the breakeven point in units

  Static and flexible budgets, variances, information quality

10.22 - Static and flexible budgets, variances, information quality The photocopying department in a community college has budgeted monthly costs at $40,000 per month plus $7 per student. Normally 800 students are enrolled. During January there we..

  Can anyone give some examples of users that would interested

Some are more important to some users than others. Can anyone give some examples of users that would be more interested in one than the other?

  Weaver companys predetermined overhead rate is 1800 per

weaver companys predetermined overhead rate is 18.00 per direct labor and its direct labor wage rate is 12.00 per hour.

  What is the estimated activity base direct labor hours

california customs designs llc is a business that customizes motorcycles and automobiles according to the customers

  Compute production costs per unit

Compute production costs per unit for both approaches and for both quarters.

  Indicate the correct accept-reject decision for each

Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget.

  What is the maximum price you will pay for a bond

What is the maximum price you will pay for a bond with a face value of $1000 and a coupon rate of 14%, paid annually

  The management of an amusement park is considering

the management of an amusement park is considering purchasing a new ride for 400000 that would have a useful life of 5

  If your company follows the principle of management by

if your company follows the principle of management by exception which of the following departures from the budget

  When producing the stockholders equity section of the

when producing the stockholders equity section of the balance sheet should the balance in the treasury stock account be

  What is the recognized gain

They sold the house in May for $795,000. Broker's commissions and other selling expenses amounted to $45,000. Since they both are age 68, they decide to rent an apartment. They purchase an annuity with the net proceeds from the sale. What is the r..

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