FREE Trial

Kims Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

Kim’s Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses (p.a.) $3,000 Depreciation (p.a.) $5,000 Salvage Value: $2000 If a firm requires a 10% p.a. return (after tax at the effective tax rate) on its investments and has an effective tax rate of 20%, calculate the NPV of the SRBM.


Expert Answer:

Answer rating: 100% (QA)

The following are the information that are provided to determine the View the full answer


answer-question
Related Book For  answer-question
Accounting

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: January 08, 2021 16:13:44
See More Questions

Students also viewed these accounting questions

Q:
The following journal entry summarizes for the current year the income tax expense of Wilsons Software Warehouse: Income Tax Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
A:
Deferred taxes are the income taxes that will become due in......
Q:
The following journal entry summarizes for the current year the income tax expense of Sophie's Software Warehouse. Income tax expense..................................................1,500,000 Cash...
A:
a Deferred taxes are the income taxes that will become due in future years upon earnings that a......
Q:
For the current year ending March 31, Jwork Company expects fixed costs of $440,000, a unit variable cost of $50, and a unit selling price of $75. a. Compute the anticipated break-even sales (units)....
A:
a b Calculating Break even Sales u......
Q:
Refer to all of the facts in Problem 12-6. Required 1. Using the format in the chapters appendix, prepare a statement of cash flows work sheet. 2. Prepare a statement of cash flows for 2014 using the...
A:
1 Statement of cash flows work sheet all amounts are in thousands of dollars 1 Purchase of land 2 Purchase of plant and equipment 3 Depreciation expense 4 Proceeds from borrowings 5 Issuance of common......
Q:
What do you think might stand in the way of Alta Gracia becoming successful? What strategies might Bozich adopt to minimize the risk of failure while still adhering to his high ethical standards?
A:
So far Alta Gracia seems to be following a very successful stra......
Q:
Derf Company allocates overhead on the basis of direct labor hours. Two direct labor hours are required for each unit of product. Planned production for the period was set at 9,000 units....
A:
Standard fixed overhead is 135 000 x 0 20 27 000 Standard variable overhead is 135 000 x 0 80 108 000 The standard fixed overhead allocation rate is 2......
Q:
Internal control weaknesses give employees opportunities to commit fraud. (True/False)
A:
True Internal control weaknesses can create opportunities for employe......
Q:
Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art drove his car 15,000 miles for business purposes and 20,000 miles in...
A:
7 500 15 000 miles 20 000 mi......
Q:
Accrual accounting is used because a. cash flows are considered less important . b. it provides a better indication of ability to generate cash flows than the cash basis. c. it recognizes revenues...
A:
The detailed answer for the above question is prov......
Q:
Koto Merchants uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for...
A:
Click to View...
Q:
Dishwashers Delights plows back 69.50% of its earnings to take on projects that earn the firm a rate of return of 13.50%. Dishwashers stockholders require a return of 13.00% on their common stock....
A:
Question a Expected Growth rate Retention Ratio Rate of Return 69 5......
Q:
For the same firm, click on Key Statistics. What is the firms beta? What are its return on assets (ROA) and return on equity (ROE)? What is its short ratio?
A:
Beta measures a stock s volatility in relation to the market It indicates how the stock pric......
Q:
In an immersion measurement of a womans density, she is found to have a mass of 62.0 kg in air and an apparent mass of 0.0850 kg when completely submerged with lungs empty. (a) What mass of water...
A:
a The mass of water displaced is equal to the difference between the woman s mass in air and her app......
Q:
You are tasked with determining a good estimate of the pressure and vaporphase composition for a vaporliquidliquid equilibrium system of benzene (1) + water (2) at two temperatures: 303.15 K and...
A:
Click to View...
Q:
"It got to where I was twitching, literally, on the way into work," states Carrie Clark, a 52-year-old retired teacher and administrator. After enduring 10 months of repeated insults and mistreatment...
A:
Workplace bullying can significantly impact an employee s self efficacy which is their belief in their ability to succeed in their job When an employe......
Q:
In 2021, Joshua gave $15,000 worth of XYZ stock to his son. In 2022, the XYZ shares are worth $25,000. What will be the gift tax in 2021?
A:
As of my knowledge cutoff in September 2021 the United States has a federal gift tax system in place In 2021 the annual gift tax exclusion allows individuals to gift up to a certain amount to each rec......
Q:
There were no other non-current assets acquisitions or disposals. A dividend of 150m was paid on ordinary shares during the year. Required a) Prepare a cash flow statement for Blackheath plc for the...
A:
Click to View...
Q:
Draw a Feynman diagram for the reaction n + v p + .
A:
Since leptons are involved the re......
Q:
Give an example of budgetary slack.
A:
Managers may plan slack in the budget in order to provide a cushion for......
Q:
McLean Company produced 2,500 units that require three standard gallons per unit at $18.50 standard price per gallon. The company actually used 8,000 gallons in production. Journalize the entry to...
A:
Work in Process 7 500 gal x......
Q:
The following selected transactions were completed by Silvertree Company during January of the current year: Jan. 1. Purchased merchandise from Guinn Co., $13,600, terms FOB destination, n/30. 3....
A:
Jan 1 Merchandise Inventory 13 600 Accounts Payable x Guinn Co 13 600 3 Merch......
Statistical Thinking Improving Business Performance 2nd Edition - ISBN: 1118094778 - Free Book