What is the present value of the phone

Assignment Help Financial Accounting
Reference no: EM132658086

Problem 1: Oasis has developed a new hands-free phone that can be plugged into your ear. The new gadget is now ready for production and development. The Oasis telephone company estimates that the phone's first annual cash flow will be 200,000 euros a year, starting 2 years from today. Cash flow will increase by 5% forever. What is the present value of the phone if the rate of return is 10 percent?

Reference no: EM132658086

Questions Cloud

What npv does the previous calculation yield : What is the net present value of the project if the required rate of return is set at 12%? And What NPV does the previous calculation yield?
Define potential impact of choice on organizational culture : Organizations from time to time must make hard decisions (expand, lay off employees, or close a facility). As a manager, you will have to use work experiences.
Discuss the deductibility of the points : To sell the residence, Rachel agreed to pay $5,500 in points related to Thomas's mortgage. Discuss the deductibility of the points
How high will the amount be after ten years : Plans to save for 10 years and use the money to buy a house. It receives a return of 8% per year, how high will this amount be after 10 years.
What is the present value of the phone : Oasis has developed a new hands-free phone, Cash flow will increase by 5% forever. What is the present value of the phone if the rate of return is 10 percent?
What are limitations on Diane mortgage interest deduction : All of the properties have mortgages on which Diane pays interest. What are the limitations on Diane's mortgage interest deduction
How your actions or lack thereof affect others : Daniel Goleman, a psychologist, was the first to popularize the trait emotional intelligence, sometimes referred to as EI. Emotional intelligence is a person's.
What is the future value of the cash flow after three years : What is the average return on this investment per year, if no interest rates are assumed? What is the future value of the cash flow after three years?
How much can Jayden include in determining deductions : Before considering any limitations on these deductions, how much can Jayden include in determining his itemized deductions for 2019

Reviews

Write a Review

Financial Accounting Questions & Answers

  What price should quote if the job is likely to take 30 hour

Jill Collis has decided to start a business as a garden designer.- What price should she quote if the job is likely to take 30 hours?

  Determine how much is the total cost the company will incur

Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for BB?

  Reported a retained earnings balance

Flam Co. reported a retained earnings balance of $400,000 at December 31, 2014. In August, 2015, Flam determined that insurance premiums of $60,000 for the three-year period beginning January 1, 2014, had been paid and fully expensed in 2014. Flam ha..

  Find and calculate the new break-even quantity

Find and Calculate the new break-even quantity. make provision for a 10% increase in fixed production costs and an increase in variable costs of R15 per unit.

  What will the impact be on its operating breakeven point

If the firm has a potential investment that would simultaneously raise its fixed costs to $16,500 and allow it to charge a per-box sale price of $6.50 due to better-textured tacos, what will the impact be on its operating breakeven point in boxes?

  What is retailers effective cost of trade credit

the retailer is an important customer supplier allows the firm to stretch its credit terms what is retailers effective cost of trade credit

  What is tax basis in the stock received in the exchange

Kim transfers property with a tax basis of $1,120 and a fair market value of $810 to a corporation in exchange for stock with a fair market value of $620 in a transaction that qualifies for deferral under section 351. The corporation assumed a liabil..

  What is par or stated value per share of apples common stock

Calculate the payout ratio, earnings per share, and return on common stockholders' equity. What is the par or stated value per share of Apple's common stock?

  Journal entries-par value of the common shares

On October 15, 2013, Jindo Company declared and distributed a 10% stock dividend. The market value of the common stock on this date was $30 per share. Fractional share rights represented 8,000 shares. Cash was paid in lieu of issuing fractional share..

  What is the number of shares which denver company must issue

What is the number of shares which the Denver Company must issue to the Colorado Company shareholders - consolidated balance sheet

  The aicpas definition of forensic accounting

Which is not one of the six areas of litigation services that the AICPA committee suggested in 1986? What was the smoking gun to convict Al Capone? Which would not be included in the AICPA's definition of forensic accounting?

  Which division should be closed and why

After recording lower than anticipated profits last year, Manuel has decided to shut down one of its divisions that is not performing well . Which division should be closed and why?

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