Discounted cash flow

purchase new equipment to increase the company’s printing capabilities. Additionally, capital budgeting occurs in three steps, finding the required rate of return via the weighted average cost of capital (WACC), calculating relevant cash flows, and analyzing the cash flows through capital budgeting tools such as the net present value (NPV) and internal rate of return (IRR) (Colorado State University-Global Campus, 2017). Once these steps are completed, the potential financial…

First Year Financial Statement The Perkins Family Medicine Clinic’s first year financial statement will be broken down into start-up expenses to fund and start-up assets to fund; start-up expenses to fund will cost $22,732 and start-up assets to fund will be $195,000 for a total of $217,732. The start-up expenses will be used to purchase office equipment, medical supplies, medical furniture, insurance and utilities. This start-up capital will come from the Bexar County Medical Expansion…

Canadian Tire hosted a million dollar giveaway, where it is visibly guaranteed that a lucky shopper will win a prize of one million dollars. When the underlined “will” is seen, it suggests that the winner of the giveaway is certainly receiving the listed prize money. An asterisk is placed beside the word “win”, meaning there is further information regarding the winning factor of the prize. The money piles are all in Canadian dollars which lead to the assumption that the prize will be in Canadian…

In evaluating capital expenditures, it is necessary to analyze net present value and internal rate of return to gauge return on investment. DT LLC has decided to use three depreciation methods – including straight-line, sum-of-the-year’s digits, and MACRS depreciation – to determine the profitability of XYZ’s investment. DT LLC’s accounting department believes analyzing the computer system investment through three separate depreciation methods would give a comprehensive overview of the return on…

X-Opoly, Inc. is a company that was started by two college freshman who based a real estate board game on the essentials of Monopoly®. The board game was originally modeled on local popular landmarks surrounding the college. With X-Opoly’s ability to design and produce custom real estate trading games for universities, municipalities, chambers of commerce, and businesses, their venture was huge success. So, upon graduation they decided to run the company full time. Orders varied between a few…

In this paper I will identify the reason why Jackson and Kara Erb will not receive a refund from the prior year, how their refund and taxes due were calculated, as well as why they were not subject to the alternate minimum tax (AMT). These aspects will be answered from information provide as well as from the scenario presented between a Tax Accountant Peggy Sue as she explains to her new clients Jackson and Kara Erb by utilizing the class textbook, lessons, and other reputable sources. Not until…

Adley- Week2 DQ2 Initial Reply Capital expenditures (CAPEX) are actual expenses incurred to purchase or maintain property assets. These cash outflows are capitalized on the balance sheet, shown as depreciable expenses on the income statement, and deducted over an IRS-specified term of 3-7 years. Explicitly regarding pro forma analysis, CAPEX are projected costs to maintain the asset in good repair, and a line-item section under improvements of the depreciation schedule, along with tenant…

In today’s financial world, there is one ultimate driving factor, and that is money. Money is the ultimate driving factor in the financial world. Many individuals working within the financial sector get influenced by the idea that making profit is the main priority regardless of the costs that could be incurred. One of the biggest cost that can be incurred is deregulation. The issue of deregulation has caused a divide amongst society. Many push for regulation because they fear that risky actions…

Assignment 2: Question 2 Working capital management looks at the relationship between a firm's short-term assets and its short-term liabilities. The main goal of working capital management is to ensure that a firm has adequate cash flow for their operations and has the most productive use of their resources. Net working capital is the excess of current assets over current liabilities. Since current assets can be financed by either current liabilities or long term funds, the excess of current…

The following analysis is conducted based on the information provided by B. Wilder on December 11, 2005, regarding a potential purchase of the South Face Mine from Mountain Mining Canada Limited (MMCL). The purpose of the analysis is to provide a better understanding of the potential risks and offer the best estimate of our actuarial recommendation. Engineers and financial analysts at Can-Do estimated that the cost savings through a combination of improved surface logistics and optimal…