Effect to depreciation on the investment, Accounting Basics

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Effect to depreciation on the investment

A company is evaluating a project requiring capital expenditure of 620,000. estimated life of project is four years and no salvage value. estimated net income and net cash flow from the project are

year net income net cash

1 45000 200000

2 85000 240000

3 5000 160000

4 15000 170000

The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively.

what is the average rate of return on investment, giving effect to depreciation on the investment.
what is the net present value.

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Accounting Basics: Effect to depreciation on the investment

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Accounting Basics: Effect to depreciation on the investment

Reference No:- TGS0699754

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Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Effect to depreciation on the investment

Reference No:- TGS0699754

Recent Questions Asked Accounting Basics

Q : Desired rate of return for net present value

Q : What is its contribution margin

Q : Variable overhead costs indirect labour

Q : What is the focal length of the magnifying glass

Q : Effect to depreciation on the investment

Q : Discuss journal entries for each of the six transactions

Q : Explain the expected sales for tents at sandys camping gear

Q : State point when moving convex lens toward and away from eye

Q : Amount of the advantage of that alternative

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