What is the return expected on this investment

Assignment Help Accounting Basics
Reference no: EM132101358

Question - Your firm, Nurse International has identified an investment for your hospital. Your boss is expecting you to complete a comprehensive, analytical, response to this project (details to follow) . Your firm's opportunity cost rate is 12%.

Year

Cash Flow

0

($1,000)

1

250

2

400

3

500

4

600

5

600

a) What is the return expected on this investment measured in dollars if the firms opportunity cost rate is 12 percent?

b) Provide an explanation, in economic terms, of your answer?

c) What is the return on this investment measured in percentage terms?

d) Should this investment be made? Explain your answer.

Reference no: EM132101358

Questions Cloud

Errors in the delivery system of our us healthcare : What are some of the issues when it comes to errors in the delivery system of our US healthcare?
Medical errors or in our health care delivery system : What are one or more of the most effective measures identified to date that help in regards to medical errors
Problems in our delivery system in regards to healthcare : What are some of the problems in our delivery system in regards to healthcare?
Compare theories on the similarities and differences : Write a 1050- to 1400-word (3-4 page) paper using one theory from each chapter to describe yourself and your personal career path. Use vocabulary and concepts f
What is the return expected on this investment : Your firm, Nurse International has identified an investment for your hospital. What is the return expected on this investment measured
Incentivize employees productivity : Is there a way that a reward system could be incorporated to incentivize employees productivity?
Analyze the ethical implications of a counselor expressing : Identify actions a counselor might take when confronted with clients they find difficult to treat due to differences in values/beliefs.
What evidence would you present to support your argument : Response for the following statement: 'There is only one best way to manage'.
Investing heavily in information technologies : What evidence can you find that supports why organizations are investing heavily in information technologies?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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