answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mezya [45]
2 years ago
7

A project will produce cash inflows of $2,800 per year for 4 years with a final cash flow of $5,700 in year 5. the project's ini

tial cost is $9,500. what is the net present value of this project if the required rate of return is 15 percent?

Business
1 answer:
Ira Lisetskai [31]2 years ago
4 0

Net Present Value is equal to the Present Value of the future cash flows - Initial Investment. The Present Value of the cash flows is discounted at an interest rate 15% (in the above question).

Present Value of the cash Flows = Cash flow in Year 1 ÷ (1 + r ) ^n

where r = 15%

n = number of years.

The Net Present Value is $1,328

You might be interested in
Jerome, Inc., paid $8,850 to make a debt investment in trading securities of Tedesco, Inc. On December 30, (within the same fisc
pogonyaev

Answer:

Date                                      General Journal        Debit Credit

                                                     Debt investment        8850  

                                                     Cash                                           8850

Dec 30                                       Cash                           7000  

                                                     Debt investment                                 6500

                                                     Gain on sale of investment              500

Explanation:

6 0
2 years ago
Company a has a potential irr of 23% and company b has a potential irr of 30%. what 2 questions would you ask before you decide
Vladimir [108]
I would ask "how much is the initial investment" and "how long is the payback period of the project" before I decide which one to invest in. The IRR of both companies have already shown the return rate of the project, therefore knowing the period and the initial amount would be the best option<span>. This option related to our fund sufficiency and cash flow.</span>
4 0
2 years ago
Rodney just earned his master's degree in Marketing. Based on his education, which job would he be best suited for? Supply Chain
lubasha [3.4K]

Answer:

Marketing Specialist

Explanation:

Marketing is in all the activities undertaken by a business to entice customers to but its products.  It will include all promotional initiatives that aim at increasing the sales volume of a company. These activities range from advertising, promotions, publicity, and direct selling.

Rodney has graduated in marketing; meaning has acquired skills and competencies required in the marketing discipline. He will be more effective as a marketer as he has adequate knowledge of marketing. Rodney will be more fulfilled and better motivated in marketing because that is his area of strength.

7 0
2 years ago
A new machine costs $200,000 and has a useful life of 5 years, with a salvage value of $30,000. It will cost $5,000 to dismantle
aleksley [76]

Answer:

The book value at the end of year 3 is $100,000

Explanation:

Yearly Depreciation =(cost+cost of dismantling-salvage value)/useful life

cost is $200,000

cost of dismantling is $5000

salvage value is $30000

useful life is 5 years

Yearly depreciation=(200000+5000-30000)/5

Yearly depreciation=$35000

Depreciation for three years=$35000*3

                                               =$105000

Book value at the end of year 3=total cost of machine-three years' depreciation

Book value at end of year 3=$200000+$5000-$105000

Book value at the end of year 3=$100,000

7 0
2 years ago
Dominik Corporation purchased a machine 5 years ago for $527,000 when it launched product M08Y. Unfortunately, this machine has
Sloan [31]

Answer:

$532,000

Explanation:

The opportunity cost is the cost of the best option rejected.

In this case the option rejected was the investment project that would have returned a total fo 532,000

Therefore, the model 240 should produce a higher profit than 532,000 to reject his project.

The 310 model would have unused capacity as it has more capacity than model 240 but the company will not need to produce as much. So it is discarted from the calculation as it has inefficiency

3 0
2 years ago
Other questions:
  • Mr. Jackson purchases a home for $90,000. He paid $4,000 as an earnest money deposit, and is obtaining an 80% loan. Costs includ
    9·1 answer
  • Imagine that you calculate the inflation rate of some economy using the CPI. You get that inflation in 2008 was 22.4%, in 2009 w
    8·1 answer
  • Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $4,200, t
    5·1 answer
  • Randy, the production manager at a computer hardware manufacturing company, is never satisfied with the productivity of his work
    7·2 answers
  • Kavitha and Andrei are truck drivers for the Delightful Delivery Company, which services cities WWW, TTT, and QQQ. The distance
    6·1 answer
  • John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate
    15·1 answer
  • On July 1, 2019, immediately after recording interest payments, Salsa, Inc. retired one fifth of its $500,000 of bonds payable f
    13·1 answer
  • 31. Which one is not the barriers of Enterpreneurship:
    13·1 answer
  • National Family Opinion (NFO) contacts several hundred members of its consumer panel and provides them with a printed descriptio
    8·1 answer
  • n Office Manager uses a Periodic Review Inventory System: they check the inventory in their Office Supply Closet once every 10 d
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!