User Account

All Pages

What is the opportunity cost of the eliminated

Assignment Help Financial Accounting
Reference no: EM131139487

Capital Investment Evaluation

Select one of the capital investment evaluation methods described in Chapter 10 of your text. Fully explain the capital evaluation method's strengths and weaknesses. Take a position and defend the use of your selected method. Be sure to use at least two scholarly sources to support your position. Your initial post should be 200-250 words

Ranking Investment Alternatives

Grosvenor Industries has designated $1.2 million for capital investment expenditures during the upcoming year. Its cost of capital is 14 percent. Any unused funds will earn the cost of capital rate. The following investment opportunities along with their required investment and estimated net present values have been identified:

Project

Net Investment

NPV

Project

Net Investment

NPV

A

$200,000

$22,000

F

$250,000.00

$30,000.00

B

$275,000

$21,000

G

$100,000.00

$7,000.00

C

$150,000

$6,000

H

$200,000.00

$18,000.00

D

$190,000

-$19,000

I

$210,000.00

$4,000.00

E

$500,000

$40,000

J

$250,000.00

$35,000.00

In your response, complete the following:

• Rank the projects using the profitability index. Considering the limit on funds available, which projects should be accepted?
• Using the NPV, which projects should be accepted, considering the limit on funds available?
• If the available investment funds are reduced to only $1,000,000:

o Does the list of accepted projects change from Part 2?
o What is the opportunity cost of the eliminated $200,000?

Attachment:- Chapter_Ten.rar

Reference no: EM131139487

Questions Cloud

Simulation to estimate the probability : Write a Monte Carlo simulation to estimate the probability that if a 10 inch stick is broken at random in two places, the 3 pieces can form a triangle. Assume that the two locations where the stick is broken are equally likely anywhere on the stick. ..
Analyze research methods used for uncovering basic emotions : Examine at least two historical theories of emotion and arousal as they relate to human motivation. Analyze at least two research methods used for uncovering basic emotions.
Flexible and flat technocracy : What are the advantages and disadvantages of the creative side of Google being run as a "flexible and flat" technocracy
Important to managers in the cellular phones business : The term churn is very important to managers in the cellular phones business. Churning occurs when a customer stops using one company's services and switches to another company's services. Obviously managers try to keep churning to a minimum, not onl..
What is the opportunity cost of the eliminated : Using the NPV, which projects should be accepted, considering the limit on funds available? Does the list of accepted projects change from Part 2? What is the opportunity cost of the eliminated $200,000?
Review ecommerce marketing and marketing ecommerce : Review Ecommerce Marketing and Marketing Ecommerce Site on a Budget then for your chosen company research their traditional and online marketing advertising strategies that they utilize. In 3-4 pages, provide at least 3 examples of their traditional ..
Allegations of mismanagement and data falsification : The problem with healthcare texts is that by the time they are published; things can change dramatically. Hence, one of the sections of your text is on the US Department of Veterans Affairs and it paints a pretty amazing picture of the VA in the late..
What is the largest wavelength found in the scattered x-rays : What is the largest wavelength found in the scattered x-rays?
Write summary about the topic aristotle nicomachean ethics : Write 400 words summary about the given topic.  - The Topic is : ARISTOTLE Nicomachean Ethics.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the employer''s total payroll taxes expense

state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period.

  The question is about standard cost involves calculation of

the question is about standard cost involves calculation of different variances.marrick company makes one product for

  Ability to pay its current liabilities and total liabilities

Large Land Photo Shop has asked you to determine whether the company’s ability to pay current liabilities and total liabilities improved or deteriorated during 2015. Compute the following ratios for 2015 and 2014, and evaluate the company’s ability t..

  Stockhoolders equity section of the balance sheet

The following accounts and their balances appear in the ledger of Amazon Properties Inc. on April 30 of the current year: Prepare the Stockhoolders' Equity section of the balance sheet as of April 30. Fifty thousand shares of common stock are authori..

  Question brubaker inc a manufacturer of high-sugar

question brubaker inc. a manufacturer of high-sugar low-cholesterol frozen dinners low-sodium would like to increase

  Sound internal control practice dictates-cash disbursements

Sound internal control practice dictates that cash disbursements should be made by check, unless the disbursement is very small. Petty cash can be substituted for a checking account to expedite the payment of all disbursements.

  Find what would incomplete units physically look

Find what would incomplete units physically look like at the end of any given part of the process? For example, at end of the distillation process and then at end of the final bottling process

  Small manufacturing company

Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances.

  Find the inventory cost

Determine the inventory cost by the first-in, first-out method and determine the inventory cost by the last-in, first-out method.

  Complete the monthly flexible budget

Complete the monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2010.

  Compute the unit contribution margin for each product

Compute the unit contribution margin for each product. Determine which product should be produced in priority, given the labor constraint, and explain why.

  What is the amount of research and development costs

The equipment has no alternative future use. What is the amount of research and development costs that should be charged to income in 2014?

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