Find the net present value of the investment, Accounting Basics

+44 141 628 6080
[email protected]

Find the net present value of the investment

A machine will cost $45,000 and is expected to generate equal annual cash flows of $15,000 at the end of each of the next five years. In addititon, the machine is expected to have a salvage value of $8,000 at the end of the fifth year. determine the net present value of this investment, assuming an interest rate of 20%.

A. $(14,850)

B. $(135)

C. $3,081

D. $23,793

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Find the net present value of the investment

Reference No:- TGS090337

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Valuation of noncontrolling interests

Which statement is true concerning valuation of noncontrolling interests at the date of acquisition per U. S. GAAP?

Q : Non-controlling interest in net income measured by gaap

Assume a parent acquires 75% of the stock of a subsidiary, in an acquisition in which goodwill is reported. If goodwill is not impaired, on the consolidated income statement the noncontrolling interest in net income as measured by U. S. GAAP is:

Q : Subsidiary land and inventory

In an acquisition, a subsidiary's land, inventory (FIFO), and fixed assets (12 year life) are revalued. It is now 15 years after the acquisition. In consolidation, elimination entry (R) affects :

Q : Acquisition cost over book value

An acquiring company wants to maximize its consolidated current and future income. It acquires another company for a price well in excess of the company's book value. Which allocation of the excess of acquisition cost over book value will best mee

Q : Find the net present value of the investment

Q : Determining the present value of the investment

A business is considering the investment in a new machine that will cost $320,000 with no salvage value. The machine is expected to reduce labor costs by $70,000 per year and material scrap by $20,000 per year. The machine is expected to have a 5-

Q : Events using the fair value method

Prepare the necessary entries from 1/1/07-2/1/09 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."

Q : What is the interest expense on the bonds

Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2009. They have a ten-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. What is the interest expense on the bonds in 2010

Q : Accounts receivable approach to estimate the bad debts

Refer to Dutch Grove data. If Dutch Grove uses an aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2004?

1946880

Questions
Asked

3,689

Active Tutors

1445460

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Find the net present value of the investment

Reference No:- TGS090337

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Valuation of noncontrolling interests

Q : Non-controlling interest in net income measured by gaap

Q : Subsidiary land and inventory

Q : Acquisition cost over book value

Q : Find the net present value of the investment

Q : Determining the present value of the investment

Q : Events using the fair value method

Q : What is the interest expense on the bonds

Q : Accounts receivable approach to estimate the bad debts

How to clarify the various exceptions to confidentiality

Show evidence for brain asymmetry

Discuss adolescent is struggling to fit in with his/her peer

How to acquire new biblical learning and knowledge

Determine possible problems that might affect the fetus

How individual differences in timing and tempo of puberty

How empirical evidence you found could be used by companies

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Find the net present value of the investment

Reference No:- TGS090337

Recent Questions Asked Accounting Basics

Q : Valuation of noncontrolling interests

Q : Non-controlling interest in net income measured by gaap

Q : Subsidiary land and inventory

Q : Acquisition cost over book value

Q : Find the net present value of the investment

Q : Determining the present value of the investment

Q : Events using the fair value method

Q : What is the interest expense on the bonds

Q : Accounts receivable approach to estimate the bad debts

Asked Questions