Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. delta corp details:initial investment of r600,000

Delta Corp Details:Initial investment of R600,000 and residual value of R40,000.Cashflows and discount factors:YearCashflowsDiscount FactorYear...

80.2K

Verified Solution

Question

Accounting

Delta Corp Details:

  • Initial investment of R600,000 and residual value of R40,000.
  • Cashflows and discount factors:

Year

Cashflows

Discount Factor

Year 1

R90,000

0.909

Year 2

R140,000

0.826

Year 3

R130,000

0.751

Year 4

R100,000

0.683

Year 5

R80,000

0.621

  • Cost of capital: 9%
  • Depreciation: R30,000 per year
  • Tax rate: 26%

Required:

  1. Calculate each of the following: 1.1 Accounting Rate of Return 1.2 Payback period 1.3 Net Present Value (NPV) 1.4 Internal Rate of Return (IRR)

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

Explain the process of cortisol signaling. what kind of signaling is it? how does it affect...

Biology
Q

PLEASE TYPE THE ANSWER AND KEEP IT SHORT AND SIMPLE!!!! DO NOT COPY OTHER ANSWERS! Contrast Newton's...

Physics
Q

3 A particle falls from rest under gravity Its potential energy PE with respect to...

Physics
Q

0 Two spheres of radii R and R respectively are charged and joined by a...

Physics
Q

Question 2 of 10 Step 1 of 1 Find the slope determined by the following...

Algebra
Q

CE Final F Find the slope of the line and write a sentence explaining the...

Algebra
Q

A company using activity based pricing marks up the direct cost of goods by 0.22...

Accounting
Q

Required information Problem 12-6A (Algo) Use ratios to analyze risk and profitability ( LO12-3, 12-4)...

Accounting
Q

Using the following information, you are to prepare a comprehensive budget for Friends, Again. The...

Accounting
Q

Comment on the components of the fraud triangle that led to these events: (a) The...

Accounting
Q

an employer my exclude all of the following groupsfrom there sep plan except

Accounting
Q

Ignite (Pty) Ltd Ignite (Pty) Ltd has a 15% interest in Happy but...

Accounting