auction. Account the unaccounted fixed assets in the books. Capitalise the interest payable on loans borrowed for construction and purchase of assets until the commissioning of project. Account for the fixed assets acquired through any grant. Calculate depreciation on such assets. Transfer capital work in progress to fixed asset on completion of project.
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|University of Sunderland | |Managing Financial Resources andDecisions | | | |
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Duration (years) Cash Flows Cost of capital Payback (years) 35000 15 5000 12% total cost annual cash flow 10 11 12 13 14 15 7 NPV IRR present value of cash inflows - present value of cash outflows 3.07% ($9,073.04) B) Should Rainbow Products purchase the machine with service contract? perpetuity annual receipt discount rate 4500 0.12 37,500 $37,500 - $35,000 = $2,500 Based on the perpetuity, Rainbow Products should purchase the machine with the service contract
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Chapter 14 Capital Budgeting Decisions Solutions to Questions 14-1 Capital budgeting screening decisions concern whether a proposed investment project passes a preset hurdle, such as a 15% rate of return. Capital budgeting preference decisions are concerned with choosing from among two or more alternative investment projects, each of which has passed the hurdle. 14-2 The “time value of money” refers to the fact that a dollar received today is more valuable than a dollar received in the
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Objective of Project Report : The main objective of the Project Report is Find the Ratio Analysis of company. And sub objectives of this report is understand the Meaning of Ratio, Pure Ratio or Simple Ratio, Advantages of Ratio Analysis, Limitations of Ratio Analysis, classification of Ratio, Liquidity Ratio, Profitability Ratio or Income Ratio, Activity & Turnover Ratio, Return on Capital Employed MFC PROJECT REPORT ON RATIO ANALYSIS Meaning of Ratio:- A ratio is simple arithmetical expression
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University Dr. Xiaodong Wu ECO 550 March 9, 2014 Introduction One of the most important long term decisions for any business relates to investment. Investment is the purchase or creation of assets with the objective of making gains in the future. Typically investment involves using financial resources to purchase a machine/building or other asset, which will then yield returns to an organization over a period of time. Planning investments involves thinking about a range of issues that have
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University Dr. Xiaodong Wu ECO 550 March 9, 2014 Introduction One of the most important long term decisions for any business relates to investment. Investment is the purchase or creation of assets with the objective of making gains in the future. Typically investment involves using financial resources to purchase a machine/building or other asset, which will then yield returns to an organization over a period of time. Planning investments involves thinking about a range of issues that have
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PROJECT REPORT ON SMEs PROJECT FINANCING BY BANKS SUBMITTED TO: PROF. MAYANK PATEL AND PROF. RAVIRAJ GOHIL SUBMITTED BY: MRINKAL GARG 1011113076 2011-13 2012 ACKNOWLEDGEMENT This is to acknowledge all those without whom this project would not have been a reality. Firstly I would to convey my heartfelt thank to my Professors, Prof. Mayank Patel and Prof. Raviraj Gohil, who always help me by giving valuable suggestions and guidance for completion of this project. I am also
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B1. Historical Analysis Historical analysis of Custom Snowboards financial statements shows the company’s net sales from 2012 to 2014. Net Sales In 2012 custom snowboards net sales were $6,874,700, net sales and continued to increase by .2% in 2013. Sales continued to increase throughout 2014, with net sales of $6,955,200 an overall increase of 1.2% from 2012 two 2014. Current Ratio Custom Snowboards profitability was at its highest in 2013 when the company’s Current Ratio was 7.06 in 2013
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Dixon Corporation, a U.S.-based chemical company, is mulling on buying a plant from American Chemical Corp. American Chemical’s Collinsville plant makes sodium chlorate for the paper and pulp industry. Dixon will have to pay $12 million as purchase price for the plant. It may also pay $2.25 million to complete the laminate technology developed by the plant’s research and development staff, which is expected to improve the plant’s efficiency. Dixon already has transacted business with
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