What is the npv of this investment

Assignment Help Accounting Basics
Reference no: EM133013000

Question - Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $815,322, $863,275, $937,250, $1,017,612, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Round to two decimal places.

Reference no: EM133013000

Questions Cloud

Record the transactions in the journals : On 11 November, the business received a cheque from P. Joker for payment of the sale made on 3 November. Record the transactions in the journals
What is the current value of one share of this stock : The company just paid its annual dividend in the amount of $2.60 per share. What is the current value of one share of this stock
Should the equipment be purchased according to npv analysis : The equipment will cost $6,000 and will increase annual cash inflow by $2,200. Should the equipment be purchased according to NPV analysis
Determine the carrying amount of the asset as at december : The plant had a useful life of 50 years from the date it was constructed and ready to be used. Determine the carrying amount of the asset as at December
What is the npv of this investment : Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. What is the NPV of this investment
Prepare the journal entry to record the issue of bonds : Bradley uses the straight line method of amortizing bond premium or discount and the bonds are sold at $239,111. Prepare journal entry to record issue of bonds
What the bill for this repair : In March 2022, Cullumber repairs a bicycle that takes three hours to repair and uses parts of $85. What the bill for this repair
What is the present value of this liability : Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. What is the present value of this liability
What the weighted-average unit contribution margin : Sixty percent of the unit sales are Plain, and annual fixed expenses are $55,200. What the weighted-average unit contribution margin

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the number of times interest charges were earned

Determine the number of times interest charges were earned for the current and preceding years. What conclusions can you draw

  Verify implicit rate of interest correct against fair value

Develop a table that shows the payment schedule to determine the interest expense for each year. Verify implicit rate of interest correct against Fair value

  What is the gain or loss

Because the acquired trucks had a lower fair market value, Smith receives $10,000 in cash. What is the gain or loss

  Prepare a schedule of note discount amortization

Prepare a Schedule of Note Discount Amortization using the effective interest method

  What effect does transaction have on net income

Which is the better investment-common stock with a par value of $5 per share or common stock with a par value of $20 per share?

  Prepare the adjusting journal entry for december

Prepare the adjusting journal entry for December 31, 2015 - Prepare the required adjust ingentry at December 31, 2015.

  What are the implications of each approach

Your decision to launch a branch in Germany proves to be very insightful. Your product is so successful in the European Union that the branch is insufficient.

  Compute the inventory lost during the theft

The inventory on September 28 indicates that an inventory of $15,000 remains after the theft. Compute the inventory lost during the theft

  Determine what is analyzability and core technology

Pick one of the following terms for your research: analyzability, core technology, interdependence, joint optimization, lean manufacturing, noncore technology

  Discuss what is the net present value of the machine

the present value of an annuity of $1 for 3 periods at 12% is 2.40183, what is the net present value of the machine

  Mendosa company closes its books monthly on september 30

mendosa company closes its books monthly. on september 30 selected ledger account balances arenotes receivable

  Determine the dollar amounts of Dividend Income

On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, Determine the dollar amounts of Dividend Income

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