What is the npv of this project

Assignment Help Accounting Basics
Reference no: EM133156761

Question - Assume we can buy a piece of equipment for 1.5 million dollars and that equipment has a three year life span. Sales from that piece of equipment will be 3.4 million annually with an operating margin of 22% and annual interest of 75,000.00 and a tax rate of 28%. If the salvage value is 150,000.00 what is the NPV of this project when the companies cost of capital is 7%?

If our company can purchase new technology for 650,000.00 and that technology will save us 330,000.00 for three years at which time the new technology will be outdated and our tax rate is 35% should we buy the technology when our cost of capital is 9%.

Reference no: EM133156761

Questions Cloud

Community sector service program : Develop and document at least one community sector service program that is supported by relevant systems, identifying priorities, timelines and responsibilities
Prepare the journal entries to account for the receipt : Prepare the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares
Role of technology and business intelligence : Communicate and foster realistic expectations of the role of technology and business intelligence systems in management and decision support
Identify three most significant time wasters : Explain in detail: how can you cut down or eliminate these time wasters. Please use reliable web sources to answer and reference these questions
What is the npv of this project : Assume we can buy a piece of equipment for 1.5 million dollars and that equipment has a three year life span. What is the NPV of this project
Plan the succession management for employees : Answer the following questions for a construction and renovation company:
Prepare straight-line amortization table for the bonds life : Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $460,000 par value. Prepare straight-line amortization table for the bonds life
Comprehensive code of conduct : Please read the NLRB Guidance for Handbook Rules. Using that Guidance, list a comprehensive code of conduct for an employer that could be inserted into a handbo
Combination of data points : Please describe 10 reports that can be extracted and produced from an ERP HR or HRIS software. What data would you conclude and what kind of insights can you de

Reviews

Write a Review

Accounting Basics Questions & Answers

  Part j88 is used in one of quinney corporations products

part j88 is used in one of quinney corporations products. the company makes 3000 units of this part each year. the

  What implications does EDI will have on audit evidence

What implications does EDI (electronic data interchange) and image-processing systems will have on audit evidence? Support your reply post

  Describing how effective performance appraisals

Write a paper describing how effective performance appraisals can increase employee performance. This paper should include sections on the strategic advantages of performance appraisals, potential forms of bias within the appraisal system, as well..

  Discuss the ways a realistic budget will benefit the owner

Briefly discuss the ways a realistic budget will benefit the owner of Babycakes versus having no budget at all. Be sure to use Babycakes as the company.

  What would be the amount of revenues reported

During the year, the County incurred $400,000 of qualifying eligible grant expenditures, What would be the amount of revenues reported at the entity-wide level

  Prepare a comprehensive report directed to an australian asx

Students are required to prepare a comprehensive report directed to an Australian ASX Top 100 listed corporation

  Evaluate corporate managements comfort level with stable

evaluate corporate managements comfort level with stable earnings trends and identify what you believe is the most

  What is the balance sheet amount for trading securities

On 1/2/20X6, ALPHA acquired 100 shares of CHARLIE Corporation stock. What is the balance sheet amount for trading securities at the end of 20X7?

  Assess the risk of material misstatement at assertion level

The bonds paid 7% interest every December 31, For each of the accounting issues, assess the risk of material misstatement at the assertion level

  Calculate the present value of 100000 using an annual

calculate the present value of 100000 using an annual interest rate of 8 over a period of 10 years assuming semi-annual

  Prepare the operating activities section of the statement

Prepare the operating activities section of the statement of cash flows using the direct method.

  How much would amber receive as total dividends

How much would Amber receive as total dividends? Show journal entry and solution. Amber Corporation invested in 120,000 shares of Kaeya Corporation

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