What the initial investment is closest to

Assignment Help Financial Accounting
Reference no: EM132769204

Problem 1: A project has a net present value of $30,000, using a discount rate of 12%. If the profitability index is 0.20 the initial investment is closest to:

a. $600,000
b. $360,000
c. $150,000
d. $250,000

Reference no: EM132769204

Questions Cloud

What would be the remaining book value after two years : It is to be depreciated at a rate of 20% using the reducing balance method. What would be the remaining book value after two years?
Identify one tax you pay and one benefit you utilize : Identify one tax (other than federal personal income tax) you pay and one benefit you utilize that is funded by tax dollars. How do both of these impact your.
Evaluate what is the annual amount of depreciation : It is expected to be used for five years then sold for £1,000. What is the annual amount of depreciation if the straight line method is used?
Explain the disadvantages of having a credit card : What are some of the advantages and disadvantages of having a credit card? What are some strategies you could use to manage credit cards to avoid paying.
What the initial investment is closest to : A project has a net present value of $30,000, using a discount rate of 12%. If the profitability index is 0.20 the initial investment is closest to
Social and organizational issues : We focus on the social and organizational issues that exist with better understanding why changes occurs.
Which proceeds from issuing equity instruments be classified : In a statement of cash flows, which proceeds from issuing equity instruments should be classified as cash inflows from? operating activities
What is the average percentage of games won by a team : What is the average percentage of games won by a team? Graph a scatterplot of the team's winning percentage versus payroll. (hint: type help graphm two way in.
Study the internal resources : Why is it important to study the internal resources, capabilities, and activities of organizations? What insights can be gained?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the income statement and owner equity statement

Charles Brown opened Charlie's House Cleaners on March 1. During March, the following transactions were completed.

  Determine the entries based on bank reconciliation

Determine the Entries Based on Bank Reconciliation. Which of the reconciling items listed below require an entry in the company's accounts?

  Discuss the benefit and shortcomings of straight line mwthod

Discuss the benefits and shortcomings of the straight line method of depreciation. Using a straight line method calculate the depreciation

  Find the cost of goods sold sold for each sale and inventory

Find the cost of goods sold sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated.

  What is the groups contribution margin

What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver?

  Calculate the present value of the machine to patel

Calculate the present value of the machine to Patel. (Hint: Use Table 2 in Appendix C.) Does the purchase appear to be a smart busi- ness decision? Why?

  Prepare the balance sheet and statement of retained earnings

Prepare the balance sheet, statement of retained earnings and income statement for Harriet's Hats, Inc. for the year ended December 31, 2015.

  Explain what the term long-term solvency means

What is trend analysis? Explain how the percent change from one period to the next is calculated. Explain the difference between trend analysis and common-size analysis. Name the ratios used to evaluate long-term solvency. Explain what the term “long..

  Compute the cost effect of growth for conversion costs

Andes Ski Cimpany management is considering the cost effect of growth for conversion costs if they produce the same amount of products in 2013 as they did in 2012. In 2012, the company produced 580,000 pairs of skis at a cost of $180 per pair. Comput..

  What is after tax cost of debt for micro spin offs inc

What is after tax cost of debt for Micro Spin offs Inc. Micro Spin offs Inc, issued 20-year debt a year ago at par value with a coupon rate of 9%

  Prepare the correcting entry necessary when these errors

Prepare the correcting entry necessary when these errors are discovered. Assume that the books for 2011 are closed. (Ignore income tax considerations.) (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

  Computed without regard to the stock redemption

Energy Company is owned equally by tom and his sister Sam, each of whom own 1,000 shares in the company. On December 31, 20X3, energy redeemed 200 of Sam's shares for $5,000,000 in a transaction treated as an exchange by Sam. Energy has current E&P o..

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