Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a firm is considering investing in a project that

A firm is considering investing in a project that requires an initial investment of $200.000...

70.2K

Verified Solution

Question

Accounting

image

image

A firm is considering investing in a project that requires an initial investment of $200.000 and is expected to produce cash inflows of $60.000, $80.000, and $100,000 in first, secondand third years. There will be no residual value. The firm applies a discount rate of 10%- Discount factors for Year 1, 2 and 3 are 0.909, 0.826, and 0.751 respectively. Required: 1) Calculate the NPV of the project.- 11) Explain the meaning of NPV and its advantages as an investment evaluation method compared with the Accounting Rate of Return and Payback methods. An accountant has calculated the following ratios for his company for the last three years. (Remember: To convert turnovers into time periods, divide 365 days by the turnover.) 2018 2019 20204 Accounts receivable turnover 74 84 Inventory turnover 34 3.5 Accounts payable turnover 3.54 94- 342 Required: 1) Calculate the Operating Cash Cycle time for each of the three years. 11) Comment on the significance of the Operating Cash Cycle for the management

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Balance Sheet at end of April Cash -60,000                 Stock 400,000 Receivables 350,000 Inventories 280,000         Retained Earnings 170,000 Totals 570,000                Totals 570,000 Assume the owner, Derrick, got...

Finance
Q

1. Describe the path of urinary filtrate from where it leaves the glomerulus to the ureter....

Medical Sciences
Q

Implement a program as an object using a class (abstract data type) in C++ that does...

Programming
Q

1. Give an example in which regression toward the mean might occur? 2. Write out an example...

Electrical Engineering
Q

Problem 9-13 (Algorithmic) Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from...

Advance Math
Q

X 0 5 0 28 0 7 X Type a whole number or a decime

Basic Math
Q

On January 1, 2023, French Company acquired 60...

Accounting
Q

One Stop Copy purchased a new copy machine. The new machine cost $132,000 including installation....

Accounting
Q

Jim, a retail merchant, reported the following on his 2015 return: Sales $200,000; COGS: $80,000;...

Accounting
Q

Prior to adjustment at the end of the year, the balance in Trucks is $296,900...

Accounting
Q

3.) Suppose that the demand equation for a certain commodity is q = 180 -...

Accounting
Q

DBC Inc. is considering a 7-year project which requires a $45,000 machine. The CCA rate...

Finance