89 lakh MT in 1997-98. The corresponding value of foreign exchange earned was to the tune of Rs. 3371.00 crore in 1997-98. Indian Basmati Rice has been a favorite among international rice buyers. Following liberalization of international trade after World Trade Agreement‚ Indian rice will become highly competitive and has been identified as one of the major commodities for export. This provides us with ample opportunity for development of rice based value-added products for earning more foreign exchange
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for $25‚000 a year. If this true‚ how would this information be incorporated into the analysis? This information would cause a slight change in the decision-making process. More specific‚ we would not recommend realizing the project if the average net profit per year (including the cost of capital) will be less than or equal to $25‚000 which in fact can also be achieved with no risk at all. In order to recommend realizing the project we should either be certain that our profit will be higher than
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a new investment project. Currently‚ the company judges the potential success of a project by its ability to achieve a 25 percent return on assets after 5 years. This ratio measures how efficiently Nucor’s assets are able to generate revenue. Based off current market growth rate predictions‚ an investment in the CSP process will result in a return on assets of 29.33 percent. (Exhibit 1) This number exceeds the initial investment qualification by a promising margin of about 4 percent. Therefore‚ based
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profitability of projects. 9-4 Net present value computes the present value of all relevant cash flows associated with a project. For conventional cash flow‚ NPV takes the present value of all cash inflows over years 1 through n and subtracts from that the initial investment at time zero. The formula for the net present value of a project with conventional cash flows is: NPV = present value of cash inflows - initial investment 9-5 Acceptance criterion for the net present value method is if NPV >
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issues of intangible assets and goodwill have highlighted the numerous approaches to measuring and reporting goodwill. These issues of identifying and measuring goodwill have provided great challenges in communicating the relevant value for an organisation. However‚ they are becoming increasingly more important in an environment where goodwill and other intangible assets are making up larger components of business purchase/combination prices. In determining the correct value of goodwill in the financial
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This is the first part of a paper where the construction of the free cash flow is studied. Usually a great deal of effort is devoted in typical financial textbooks to the mechanics of the calculations of time value of money equivalencies: payments‚ future values‚ present values‚ etc. This is necessary. However less or no effort is devoted to how to arrive at the figures required to calculate a NPV or Internal Rate of Return‚ IRR. In Part I‚ pro forma financial statements (Balance Sheet (BS)
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in the value of fixed assets due to its usage and technology changes. Generally depreciation is charged at some percentage on value of an asset. If we don’t use fixed asset also‚ we should provide depreciation. Depreciation is provides on the tangible asset except land Accumulated Depreciation: The total to date of the periodic depreciation charges on depreciable assets. Methods: Fixed Instalment method or Stright line method Dep. = Cost price – Scrap value/Estimated life of asset. Diminishing
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Question 1: 2D1-LS02 Which of the following items is not an example of a capital expenditure? A ventilation system upgrade for EPA compliance. Project bonuses paid to employees. Purchase of a new assembly machine that will cut labor and maintenance costs. Purchase of a new computer server for the research and development group. Long-term capital budget expenditures are often grouped in one of the following categories: new machines and equipment intended for expansion‚ replacement of existing
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the drop in value. Depreciation moves the cost of an asset to depreciation expense during the asset ’s useful life. Depreciation expense results when the purchase price of a fixed asset is reduced over time‚ or its useful life (Keown‚ Martin‚ & Petty‚ 2014). In Corporation A‚ the Depreciation expense is $5‚000 a year. We deducted the $5‚000 year depreciation from the profit to obtain the profit before tax. The tax rate of 25% was deducted from the profit before tax to find the net income. The
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Pastie << self Blog * Pastie * New * Pastes * Help * About Theme: Report abuse Cost Accounting‚ 13e (Horngren et al.) Chapter 23 Performance Measurement‚ Compensation‚ and Multinational Considerations 40) A report that measures financial and nonfinancial performance measures for various organization units
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