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Bogdan [553]
2 years ago
3

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 i

n the three years over which the project will produce cash flows. If the discount rate is 6%, what is the net present value of the project?
Business
1 answer:
bearhunter [10]2 years ago
5 0

Answer:

Net present value is 1646

Explanation:

See document attached.  To get the net present value,  we make a cash flow in excel.  

At moment 0 we have the investment cost , in this case $9,500. From period 1 to period 3, we have incomes o benefits of $1,500, $1,500, and $10,000 from moment 1 to 3.

Then, we calculate the Net cash flow that is the difference between benefits and cost.

To get  net present value,  we use VNA formula.  

=VNA(discount rate; Net cash flow from moment 0 to moment 3 )+Net cash flow at moment 0

Download xlsx
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On analyzing her company’s goods transport route, Simone found that they could reduce transport costs by a quarter if they merge
EastWind [94]

Your answer is logistician. I just took the test for this and got them all right, so I know this is correct. Hope it helps (:

8 0
2 years ago
Read 2 more answers
Neue Inc reports net income of $500,000; during the year, the company declared $100,000 in preferred stock dividends and had an
Nataly [62]

Answer:

1.60

Explanation:

($500,000 - $100,000)/250,000

3 0
2 years ago
Match to correct letter option
dusya [7]

Answer:

A. Money left over after taxes are paid - Disposable income

B. Quantity theory of money helps explain the shape of this - Real

C. Part of GDP s definition that captures the quality of goods and services - Market Value

D. Caused by a fall in the money supply - Final

E. Part of GDP s definition that means you exclude used goods and services - Real

F.  Sticky prices/wages justifies its shape - Final

G. Part of GDP s definition that means you exclude intermediary goods and services - Market Value

H. Used to make loans - Excess reserves

I. Used to cover withdraws - Disposable income

J. Interest rates are at their lower bound - Real

K. Represents the economy s fundamentals, such as population, capital, and technology - LRAS

L. Adjusted for inflation Final

M. Caused by a collapse of the stock market - Market Value

Explanation:

Long run aggregate supply is adjusted based on the products produced in the country. The supply rate is also adjusted based on demand factor. GDP is the monetary value of all goods and services produced in the country during a certain period.

5 0
2 years ago
The Walden Manufacturing Corp. has office support salaries of $4,000, factory supplies of $1,000, indirect labor of $6,000, dire
Sedbober [7]

Answer: <em>Total Period Cost = $20,500</em>

Explanation:

Given :

Salary = $4000

Factory supply = $1000

Indirect labor = $6000

Direct material = $16000

Advertising expense = $2500

Office expense = $14000

Direct labor = $20000

Period costs are the costs incurring that do not tend to be a section of manufacturing process. Therefore, we compute the Period Cost using the following formula:

<em> Period costs = Salary + Advertising expense + Office expense </em>

<em> = $4,000 + $2,500 + $14,000 </em>

<em> = $20,500</em>

7 0
2 years ago
Placker Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.
riadik2000 [5.3K]

Answer:

Total cost= $3,595

Explanation:

Giving the following information:

Estimated fixed overehad= $155,000

Estimated variable manufacturing overhead= $3.40 per machine-hour

Estimated machine-hours= 50,000

Job A881:

Total machine-hours 100

Direct materials $645

Direct labor cost $2,300

First, we need to calculate the predetermined overhead rate:

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

Estimated manufacturing overhead rate= (155,000/50,000) + 3.4

Estimated manufacturing overhead rate= $6.5

Total cost= direct material + direct labor + allocated overhead

Total cost= 645 + 2,300 + (6.5*100)

Total cost= $3,595

5 0
2 years ago
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