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mamaluj [8]
2 years ago
7

Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the comput

ation are as follows: Des Moines Cedar Rapids Total present value of net cash flow $712,500 $848,000 Amount to be invested (750,000) (800,000) Net present value $(37,500) $ 48,000 a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places.
Business
1 answer:
Kay [80]2 years ago
4 0

Answer:

0.95 and 1.06

Explanation:

The computation of the present value index is shown below:

Present value index = Present Value of net cash Flow ÷ Amount invested

So for each projects, it would be

Particulars                                         Des Moines             Cedar Rapids

Total present value of

net cash flow (A)                                  $712,500                $848,000

Amount invested (B)                            $750,000              $800,000

Present value index (A ÷ B)                   0.95                          1.06

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Juan purchased shares in ABC company for​ $5,000 three years ago. During these three years he received​ $600 in dividends. He ju
7nadin3 [17]

Answer:

B) –2%

Explanation:

The total return on an investment is calculated by,

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First we will have to calculate capital gains of his investment,

He got 600 in dividends and 4,300 after selling the stock against the initial investment of $5,000.

So capital gains,

= 600 + 4,300 - 5,000

= -100

Total Return would be,

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7 0
1 year ago
If a stadium sells 40,000 seats sold at $20, $22.50, and $25 and $28 equally distributed in four sections, how much can be made
Ksenya-84 [330]
Section A = 22,500 seats
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7 0
2 years ago
A government bond is NOT as liquid as cash because the bond:
Vesna [10]

Answer:

Option b                          

Explanation:

In simple words, A government bond reflects a government-issued debt, which is offered to buyers to finance government expenditure. The US Federal reserve is selling the government bonds over the year throughout listings.

Any selling of Treasury bonds throughout the secondary sector. Professional shareholders may purchase or sell  previously issued bonds through such a platform with a company or broker operating with it.

6 0
1 year ago
Murkywater Company is considering a lockbox system. Its collection delay is currently 12 days.
Anna007 [38]

Answer:

$6,400,000

Explanation:

Reduction in mailing time = 1.5 day

Reduction in clearing time = 1.5 day

Reduction in firm processing time = 1.0 day

Total = 4.0 days

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The value of the proposal will be the average number of daily payments to lockboxes multiplied by the total of 4 days which is then multiplied by the average payment size. This will be:

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7 0
1 year ago
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HACTEHA [7]

Answer:

- ($51,306)

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Given that,

Loss of Contribution = $75,000

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= $75,000 - $23,694

= - ($51,306)

Therefore, the net effect on dropping the cup line on net income is $(51,606).

5 0
1 year ago
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