Question your company wants to build a new warehouse on, Ask an Expert

Finance

Question: Your company wants to build a new warehouse on land originally bought for a plant your company did not build. The land's original cost was 1,000,000. It's worth today is 500,000. Construction would be another 1,000,000. Depreciation would be over 20 years with a scrap value of -10,000. Sales would increase by 800,000 per year and SG&A would increase by 50,000 per year. Your cost of capital is 8%. Would you recommend building the warehouse?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92797313

Have any Question?Write your Review or question?

Related Questions in Basic Finance

What are the advantages of purchasing an existing business

What are the advantages of purchasing an existing business opposed to opening a new venture?

If you deposit 446900 at 789 annual interest compounded

If you deposit $4,469.00 at 7.89% annual interest compounded quarterly, how much money will be in the account after 20.0 years? If you deposit $125.00 into an account paying 12.39% annual interest compounded monthly, how ...

Question - what is weighted average cost of capital how is

Question - What is weighted average cost of capital, how is it used, and when is it not appropriate to use? A substantial initial response consisting of a minimum of 100 words, using proper grammar, spelling, and punctua ...

A 1000 par value bond was issued 15 years ago at a 12

A $1,000 par value bond was issued 15 years ago at a 12 percent coupon rate. It currently has 15 years remaining to maturity. Interest rates on similar obligations are now 8 percent. Assume Ms. Bright bought the bond thr ...

You are the project manager assigned to build and design a

You are the project manager assigned to build and design a parking garage. What might be an example of a lead you encounter when scheduling work activities?

A company is considering a new project that will require

A Company is considering a new project that will require $840,000 of new equipment at the start of the project. The equipment will have a depreciable life of 7 years and will be depreciated to a book value of $56,000 usi ...

Confused on this one would appreciate any helpthe following

Confused on this one. Would appreciate any help. The following information relates to Lobo Corporation: Cash $20,000 Accounts receivable $50,000 Marketable securities ...

Your firm spends 5200 every month on printing and mailing

Your firm spends $ 5,200 every month on printing and mailing? costs, sending statements to customers. If the interest rate is 0.52% per? month, what is the present value of eliminating this cost by sending the statements ...

Question - a company in a line of business similar to bay

Question - A company in a line of business similar to Bay Path recently issued at par non-callable bonds with a coupon rate of 5.8% and a maturity of twenty years. The bonds were rated Aa1 by Moody's and AA by Standard & ...

You want to borrow 36000 from your local bank to buy a new

You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert