What is the net present value of this project

Assignment Help Accounting Basics
Reference no: EM133030792

Question - Tech Enterprises is considering a new project that will require $325,000 for fixed assets, $160,000 for inventory, and $35,000 for accounts receivable. Short-term debt is expected to increase by $100,000. The project has a life of 5 years. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. Ignore bonus depreciation. At the end of the project, the fixed assets can be sold for 25 percent of their original cost and the net working capital will return to its original level. The project is expected to generate annual sales of $554,000 with costs of $430,000. The tax rate is 21 percent and the required rate of return is 15 percent. What is the net present value of this project?

Reference no: EM133030792

Questions Cloud

What do you mean by emerging market define : What do you mean by emerging market define? Why Emerging markets are so important opportunities - how international trade helping countries to improve
Compile the data necessary to prepare a business plan : a) Compile the data necessary to prepare a business plan. b) Establish the business plan's audience.
What adjustment would Mercy Cosmetics record : The company estimates that 10% of accounts will not be collected over the next year. What adjustment would Mercy Cosmetics record
Write an expression that will cause the code : Write an expression that will cause the following code to print "I am an adult" if the value of user_age is greater than 19. Program will be tested with values:
What is the net present value of this project : Tech Enterprises is considering a new project that will require $325,000 for fixed assets, $160,000 for inventory, What is the net present value of this project
Evaluate the decision facing harlow : a. Build a decision tree to evaluate the decision facing Harlow. What would you recommend? (Be sure to state all your assumptions and show all your analysis.)
What is the annual operating cash flow : Question - A project will increase annual sales by $60,000 and annual cash expenses by $51,000. What is the annual operating cash flow
Prepare journal entries to record raw materials purchases : Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production
Prepare a detailed report : Visit Amazon, eBay, and Twitter and find and read the pages on each site that discuss security.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the net effect of the above errors on the January

What is the net effect of the above errors on the January 1, 2015 accumulated profits, understated or overstated by what amount

  Calculate income effect of the dividends on preferred share

Headland Inc. had 507,000 common shares outstanding for the entire fiscal year ended August 31, 2020. Calculate income effect of dividends on preferred share

  Determine Kim property factors for the two states

Determine Kim's property factors for the two states. The statutes of both A and B provide that average historical cost of business property

  Is there a major difference between two pieces of equipment

Construct a 95 percent confidence interval for the difference between the proportions of service contracts sold on treadmills versus exercise bikes.

  What the entry or entries that Klein must make on March

The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. What the entry or entries that Klein must make on March

  Equivalent units of production

Prepare the department's equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted average

  Calculate mr norris minimum federal tax payable

Calculate Mr. Norris' minimum federal Tax Payable for 2019. Indicate any carry forwards available to him and his dependants and the carry forward provisions

  Prepare journal entries for the grossing up payments

Interest paid net on £50,000 6% Debentures for the year 1961.

  This would result in a loss of 200 this would result in

xyz company has the following product costs for its line of product a direct materials 10 direct labor 8 variable

  Discuss what stakeholder interests are in conflict

What stakeholder interests are in conflict. What ethical issues does Carter face. How should these costs be allocated

  The following information concerns production in the

the charges to work in process-baking department for a period as well as information concerning production are as

  Describing an initial offering for a global firm

Write a 750-to-1,000 word paper describing an initial offering for a global firm. Include the following:

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