What other factors might influence this decision

Assignment Help Accounting Basics
Reference no: EM133056181

Question - Your design team has produced two alternative designs for greenhouses in a developing country. Alternative A has an initial cost of $200 and will last two years. Alternative B has an initial cost of $1,000 and will last ten years.

a. All other things being equal, determine which greenhouse is more economical with a discount rate of 10%. An easy way to do this would be to list out the cash flows each year.

b. What other factors might influence this decision?

Reference no: EM133056181

Questions Cloud

Discuss when a company should consider chapter : Discuss when a company should consider Chapter 11 bankruptcy.
Working in the financial service industry : As an individual working in the financial service industry, what are your personal strengths, weaknesses, opportunities and threats. Give reasoning on each why
Compute the price of a common share : The new dividend after 12 months will represent D1. The required rate of return is 18 percent. Compute the price of a common share
Determine the constant growth model : Hacker Cigarettes Company expects sales, earnings, and dividends to decline 5 percent in the foreseeable future due to rising taxes and falling demand.
What other factors might influence this decision : Alternative A has an initial cost of $200 and will last two years. What other factors might influence this decision
What is the stock price : Steady As She Goes, Inc., will pay a year-end dividend of $2.9 per share. Investors expect the dividend to grow at a rate of 5.9 percent indefinitely.
What is the interpretation of the r2 : b) Suppose that 4M Associates' corporate ESG rating is 55 and the company's CEO has been in that position for 10.5 years. What is the predicted ROE for 4M Assoc
Compute sales volume in dollars : Roger Corporation offers the following information: Variable costs per unit $ 945,000. Compute sales volume in dollars that produces an operating income
Determine the level of production that maximizes the profit : The demand function for a certain commodity is P(x) = 119 - 0.876*x, where P is measured in dollars and x is the number of units produced and sold.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assign the deductions for the payment of the fees

It paid fiduciary fees of $8,000. The estate is subject to a 35% marginal estate tax rate and a 40% marginal income tax rate. How should the executor assign the deductions for the payment of the fees?

  Find what accounts are affected in the income statement

Which of the following transactions would NOT be recorded in the Accounts Receivable journal? what accounts are affected in the Income Statement?

  What is the estimated internal rate of return

Terraform Company is contemplating purchasing equipment for $60,000, What is the estimated internal rate of return

  By how much would EPS increase

A company has a DOL of 2.0 and EBIT of $100,000. The company pays interest of $20,000. By how much would EPS increase if the sales increase by 10%

  What do we mean when we say that financial accounting

What do we mean when we say that financial accounting information is "general-purpose?

  Provide journal entries for the adjusting events

Assuming each of the above events is material, Provide journal entries for the adjusting events for the year ended 30 June 2020

  Determine the total dividends and the per-share dividends

Pecan Theatre Inc., Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years

  What is cost recovery deduction for travis

On December 15, 2019, he sells the equipment. He did not elect to expense the equipment under §179. What is his cost recovery deduction for 2019

  Effect on fund balance unreserved

The City of Southern Pines reported the following at year-end, prior to closing entries: Revenues, $11,000,000; Expenditures, $10,100,000; Other Financing Uses, $500,000;

  Describe working on the audit of a for-profit hospital

Now you are starting on the audit of a not-for-profit hospital and immediately notice the financial statements are not the same. Discuss what

  What amount is used for beginning inventory for a month

When neither a perpetual system is maintained nor a periodic inventory is taken, how can an ending merchandise inventory be determined that is accurate.

  What is the ending balance in Finished Goods Inventory

Units produced 610 Units sold 420 units. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing

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