User Account

All Pages

What is the net present value or npv of the project

Assignment Help Financial Accounting
Reference no: EM132684006

Bill plans to open a do-it-yourself taco and margarita station in a hotel main lobby for guests who have to wait a long time to check in. The equipment will cost $50,000. Bill expects the net cash inflows to be $15,000 annually for 8 years and then sell the equipment for $2,500 at the end of year 8. He will then retire to the beaches of Jamaica.

Problem a) What is the Net Present Value (NPV) of this project with a 10% discount rate? Should we accept/rejectthis project?

Option 1: $131,084.1370 / Reject

Option 2: $31,084.1370 / Reject

Option 3: $131,190.1614 / Accept

Option 4: $31,190.1614 / Accept

Reference no: EM132684006

Questions Cloud

What is the internal rate of return or irr of the project : What is the Internal Rate of Return (IRR) of this project? A comparable project is earning 30% .Should weaccept/reject this project?
Estimate next year interest expense : Estimate next year's interest expense assuming that interest rates will fall by 29% and the company keeps a constant equity multiplier.
Calculate the theoretical price of the share : Calculate the theoretical price of the share after the split and the bonus issue.
Calculate the tax payable by the shareholder : Calculate the tax payable by the shareholder under the dividend imputation system.
What is the net present value or npv of the project : Bill plans to open a do-it-yourself taco, What is the Net Present Value (NPV) of this project with a 10% discount rate? Should we accept/rejectthis project?
Calculate ebit to long-term funds ratio : Venus Limited has current assets of $60 million, current liabilities of $30 million, inventory of $10 million, total assets of $200 million and total shareholde
Explain two income statement items that could be affected : Explain two income statement items that could be affected by earnings management techniques. For each of these income statement items
Calculate the average continuous monthly returns : Calculate the average continuous monthly returns for the following dividend adjusted share price and market index.
How much net income would report : Jill Accardo, MD, maintains the accounting records of Accardo. If Jill prepared Net Income on an "accrual basis", how much Net Income would she report for 2020?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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