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lyudmila [28]
1 year ago
12

Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur

n on investment. The expected year-end net cash flows are $12,000 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?
Business
2 answers:
Nookie1986 [14]1 year ago
7 0
The machine's net present value is $3,481. The net present value is a method of calculating the present value of return of an investment either in capital purchases or projects. The net present value amount is acquired by subtracting the $ 37,000 initial investment from the net present value of $12,000 net cash flow for four years plus the present value of $1000 salvage value at the end of the 4th year.

Net Present Value = Present value of net cash flow + Present value of salvage value - Initial investment

$3,481 = $39,746 + $735 - $37,000
anastassius [24]1 year ago
6 0

Answer:

The answer is $3,481.

Explanation:

We have the net present value of the machine is the sum of present value of the below cash flows discounted at the required rate of return 8%:

Cash outflow at Year 0: Cost of purchasing machine $37,000

4-year annuities from net cash inflow every year: $12,000 each year.

Salvage value recovery at the end of year 4: $1,000.

So the net present value is calculated as below:

-37,000 + (12,000/8%) x [ 1 - (1+8%)^(-4)] + 1,000/(1+8%)^4 = -37,000 + 39,745.52 + 735.03 = $3,480.55

So, the net present value of the machine is $3,841 ( round to the nearest whole dollar).

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What types of information does managerial accounting provide? (Check all that apply.) Financial Information for internal decisio
jek_recluse [69]

Answer:

Financial and non-financial information for internal decision makers.

Explanation:

Managerial accounting is related to the information that is used for the management of the organization and its information is not widely used for external users. It is almost used by the internal decision makers. The information mostly relates to the effective running of its operations and control mechanism implications.

8 0
2 years ago
The intrinsic value of a company’s stock, also known as its fundamental value, refers to the stock’s "true" value based on accur
slava [35]

Answer:

The goal of the managers of a publicly owned company should be to maximize the firm's <u>INTRINSIC VALUE</u>.

The board of directors' and upper management's main goal is to maximize the corporation's value in order to maximize stockholders' wealth.

An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.'s stock should be $37.32 per share, but Mandalays Inc.'s stock is trading at $45.59 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently:

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If the analyst considers that the stock's intrinsic price is $37.32 and the market price is $45.59, this means that currently the stock is overvalued.

3 0
1 year ago
Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns
Lady_Fox [76]

Answer:

Modular homes= $182,325

Explanation:

Giving the following information:

Modular Homes - Prefab Barns

Total expected material moves 500 100

The total materials handling cost for the year is expected to be $218,790.

<u>To calculate the allocated costs to each product line, first, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 218,790/600

Predetermined manufacturing overhead rate= $364.65 per move

<u>Now, we can allocate overhead:</u>

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3 0
1 year ago
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
bogdanovich [222]

Answer:

i think the answer218

Explanation:

if you  add 176.000+35.000=211+7=218 you get the right answer

3 0
2 years ago
Create a Painting class that holds the painting title, artist name, and value. All Paintings are valued at $400 unless they are
AlexFokin [52]

Answer:

#include<iostream>

#include<string>

#define N 10

#define M 4

using namespace std;

class Painting

{

protected:

string title;

string author;

int value;

public:

Painting(string Title="", stringAuthor="",int Value=400) {title=Title;author=Author;value=Value;}

void setTitle(string newTitle){title=newTitle;}

void setAuthor(string newAuthor){author=newAuthor;}

void display() {cout<<"Title:"<<title<<endl; cout<<"Author:

"<<author<<endl<<"Value:

"<<value<<endl;}

};

class FamousPainting:public Painting

{

public:

FamousPainting(string Title, stringAuthor, int Value=25000): Painting(Title,Author,Value){}

};

int main()

{

Painting *paintings=new Painting[N];

stringfamous[M]={"Degas","Monet",

"Picasso","Rembrandt"};

string title, author;

int i,k,j;

for(i=0;i<N;i++)

{

cout<<"Input title: ";

getline (cin, title);

cout<<"Input author: ";

getline (cin, author);

k=-1;

for(j=0;j<M;j++)

if(famous[j]==author)

{

k=j;

break;

}

if(k>=0)

paintings[i]=FamousPainting(title,author);

else

paintings[i]=Painting(title,author);

}

for(i=0;i<N;i++)

{

cout<<"Painting#"<<i<<":"<<endl;

paintings[i].display();

}

return 0;

}

Explanation:

6 0
1 year ago
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