User Account

All Pages

What is the npv of the project

Assignment Help Accounting Basics
Reference no: EM131945346

Question - Stanley Company has obtained the following information about a proposed project:

Annual cash operating savings (excluding depreciation) for 5 years (end of year) $50,000

Depreciation expense per year for tax purposes $33,000

Estimated salvage value in 5 years $10,000

Cost of equipment $175,000

Required rate of return 11%

Estimated useful life (in years) 5

Depreciation method for tax purposes Straight-line Present value of ordinary annuity of one.

Required:

A) What is the NPV of the project?

B) Should the project be undertaken?

Reference no: EM131945346

Questions Cloud

Using irac determine whether odessa enforce this promise : Using IRAC and determine if the telethon sued me for my pledge what would be the outcome?
Use a t distribution-a normal distribution : Should the statistician use a t distribution, a normal distribution, or neither to test the null hypothesis?
What is the annual ownership cost : Assume interest of 15% for borrowing money, 4% for risk and 3% as equivalent interest rate for taxes, insurance and storage. What is the annual ownership cost.
Why would a focus on ebp be good for nursing : Debate the pros and cons of EBP Why would a focus on EBP be good for nursing? What are some drawbacks?
What is the npv of the project : Stanley Company has obtained the following information about a proposed project: What is the NPV of the project
Drawing a heart from a standard deck of cards : What are th odds against drawing a heart from a standard deck of cards?
How to effectively use methods of contraceptives : How to have safe sexual intercourse and how to effectively use methods of contraceptives. It is better to work with teenagers instead of against them.
When you think of a global organization : When you think of a global organization, what company do you think of and why? What do you believe has made them successful on a global level?
What does dollar parity mean to the euro : What does Dollar parity mean to the Euro? What countries use the EURO as their own currency?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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