Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. byethor inc is reviewing the company's investment

Byethor Inc is reviewing the company's investment in a cement plant. The company paid $...

80.2K

Verified Solution

Question

Accounting

image

Byethor Inc is reviewing the company's investment in a cement plant. The company paid $ 45,000,000 five years ago to acquire the plant. Now top management is considering an opportunity to sell it. The president wants to know whether the plant has met original expectations before he decides its fate. The company's discount rate for present value computations is 9% Expected and actual cash flows follow. Expected Actual Year 1 $ 9,900,000 $ 8,100,000 $ $ Year 2 14,760,000 9,180,000 Year 3 13,680,000 14,760,000 $ $ Year 4 14.940.000 11.700.000 Year 5 12,600,000 10,800,000 $ $ $ REQUIRED 1. Compute the net present value of the expected cash flows as of the beginning of the investment 2. Compute the net present value of the actual cash flows as of the beginning of the investment. 3. What do you conclude from this postaudit? Set up a mini table of present value factors to make your calculations easier

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Name four characteristics of liquid assets. What are the disadvantages of having too much or too...

Finance
Q

The types of browse favored by deer are shown in the following table. Using binoculars, volunteers...

Statistics
Q

With appropriate sketching and with your own words, explain the relationship between damping ratio and system...

Electrical Engineering
Q

Two charges q1 and q2 are kept on x axis and electric field at different...

Physics
Q

A Kaiser Permanente pamphlet on prostate cancer screening states that out of every 100 men...

Statistics
Q

1+4zx+3O(67+44i)O(67 - 44i)If y=Iwhat is the value of y when x = 4i?O(67+44i)25O(-67 +44i)O(67-441)

Calculus
Q

You are given the following budgeted and actual data for the Grey Company...

Accounting
Q

The coefficient of correlation is: 1- the range of values over which the probability may...

Accounting
Q

Kahn Company had 500 units of Dink in its inventory at a cost of $5...

Accounting
Q

There are several reasons an organization might pursue sustainable initiatives. "An automobile manufacturer has committed...

Accounting
Q

what are the objectives of internal control quality implications of leadership change in public sector...

Accounting
Q

b. What are your client's investment proportions in your three stocks and in T-bills? (Round...

Finance