What is the project npv for glenora inc

Assignment Help Accounting Basics
Reference no: EM132839775

Problem 1: Glenora Inc. is considering the following project: The equipment has a 4-year project life. This equipment falls into class 43 with a CCA rate of 30% and would have zero salvage value. The firm has other assets in asset class 43. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 4-year life. What is the project's NPV?

WACC 8.0%

Net investment cost $65,000

Sales revenues, each year $70,000

Cash operating costs $25,000

Tax rate 35.0%

a $29,250
b $16,284
c $49,175
d $96,880

Reference no: EM132839775

Questions Cloud

Disclose information about mr lodge health : Mr. and Mrs. Lodge applied for life insurance and were approved. When her husband died several months later, Mrs. Lodge claimed the benefits under the policy
What the journal entry to record value difference in land : Pink Ltd shares were considered to have a fair value of $2 per share; costs of issue were $700. What the Journal entry to record value difference in land
Explain differentiation strategies based on class profile : Design a whole group lesson on the phoneme /k/ appropriate for "Class Profile" kindergarten students using the "COE Lesson Plan Template." The lesson should.
Find opportunity to engage in active listening at work : Find an opportunity to engage in active listening at work, at home, or in your civic life.
What is the project npv for glenora inc : No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 4-year life. What is the project NPV
CHCAGE001 Facilitate the empowerment of older people : CHCAGE001 Facilitate the empowerment of older people Assignment Help and Solution, Diana School of Community Services - Assessment Writing Service
Critical for effective communication : Understanding your audience and their expectations for a business message is critical for effective communication.
What are lambert obligations : What are Lambert's obligations, if any, as the preparer of Shelton's returns as it relates to the $10,000 entertainment expense deduction?
What your role should be in the education of your student : What do you believe your role should be in the education of your student? How can you support your student's education in the learning environment and at home?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is wildhorses payout ratio

Assume that all balance sheet amounts represent average balance figures. What is Wildhorse's payout ratio

  Which order should the company accept

No selling and administrative expenses would be applicable to either order; transportation charges are to be paid by the buyer. Which order should the company accept?

  What is the labor efficiency variance

The job was completed in 570 hours and the average actual labor rate was $19.80 per hour. What is the labor efficiency (quantity) variance

  Calculate the change in current assets

A review of a balance sheet indicated the beginning and ending totals of current assets and current liabilities for a one-year operating period.

  Determine best type of income statement retailer should use

As a Financial Accountant, determine the best type of income statement a retailer should use. Defend your suggestion.

  Prepare net cash provided by operating activities section

On Sept. 3, the company purchased equipment for cash. Prepare Net Cash Provided by Operating Activities section, using above information, using direct method

  Prepare the income statement for abc for the current year

Flamingo, Inc. has the following assets, liabilities, revenues, and expenses for the current year. Prepare the Income Statement for ABC, Inc. for current year

  What is the effective rate on the loan

The bank quotes an interest rate of 15% APR for a 72-month loan with a 10% down payment. What is the effective rate on the loan

  Prepare entries for both years

The Very Poor Company is involved in making installment sales whose probability of collection is extremely low. Accordingly, it has elected to use the cost recovery method. Information regarding the years 19A and 19B.

  Discuss credit balance in the cash account an asset

Assuming no errors occurred during journalizing or posting, what caused this unusual balance

  Create table that contains the ratios for the various years

Question - Conducting Financial Ratio Analysis, Create a table that contains the ratios for the various years. Then analyze the information

  Which tootsie roll industries titles consolidated statement

Locate Tootsie Roll Industries Inc.'s most current SEC Form 10-K Annual Filing as well as the prior year's SEC Form 10-K Annual filing in the Tootsie Roll.

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