The net present value of the investment, assuming a 7% cost of capital is:
Answer to relevant QuestionsExplain the key issues in corporate governance as they relate to accounting. The Board of Grudgework Holdings has received a presentation supporting a £600,000 capital investment. The calculations for accounting rate of return, payback and discounted cash flows are shown below. What issues would you ...Enrod’s cost of capital is 16%. Compare the performance of the two divisions under both ROI and Residual income measures. In which division should Enrod invest more capital? Debtors increase by £15,000 and creditors increase by £11,000. The effect on cash flow of the change in working capital is an: c) decrease of £4,000 What does the report tell the reader? What is its limitation? Construct a flexible budget and determine the variances. How does that provide more information to users?
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