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Misha Larkins [42]
2 years ago
7

Pam's Pet Palace is considering an investment in dog grooming equipment that would increase cash receipts by $12,000 annually. T

he initial cost of the equipment is $50,000. The equipment has an estimated 10 year life and will have a $5,000 salvage value. Using a discount rate of 8%, and the tables in the appendix, what is the net present value of this equipment? a) $35,520 b) $30,520 c) $82,835 d) $32,835.
Business
1 answer:
4vir4ik [10]2 years ago
3 0

Answer:

The answer is: D) $32,835

Explanation:

The easiest way to calculate the present value of an investment is to use an excel spreadsheet and the present value function =NPV(discount rate, series of cash flow). The first nine cash flows equal 12,000 and the tenth cash flow equals 17,000.

After you calculate the present value in excel, you must subtract the investment amount to determine the net present value.

NPV = $82,837 - $50,000 = $32,837 (the answer varies by $2 probably because of rounding percentages)

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Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off
ivann1987 [24]

Answer:

The complete questions is

Molly is celebrating her exciting new career and wants to upgrade her junky old car for a shiny new Jeep

Patriot. She heads to Jeep’s website and sees the following financing deals:

Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?

Explanation:

6 0
2 years ago
Barney is 70 years old and has just retired from a career as a lawyer. He is now spending time looking back on his life and is r
Bas_tet [7]

Answer:

Life Review

Explanation:

Barney is engaged in life review process where one person return progressively to his or her consciousness of the conflicts and memories of the past which were never resolved properly, the main purpose is to re-evaluate them and to find some kind of resolutions. This is one of the most common phenomenon in which older people are engaged in their post age life where they re-call and remember their early life memories, mistakes, regrets, and unfinished tasks.

5 0
2 years ago
Schrute Farm Sales buys portable generators for $470 and sells them for $720 He pays a sales commission of 5% of sales revenue t
ad-work [718]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Schrute Farm Sales buys portable generators for $470 and sells them for $720 He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $7,000 a month rent for his store and also pays $1,700 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June.

Revenue= 720*500= $360,000

Cost of goods sold= 470*500= 235,000 (-)

Sales commision= 0.05*360,000= 18,000 (-)

Contribution Margin= 107,000

Rent= 7,000 (-)

Fixed sales comission= 1,700 (-)

Operating income= $98,300

8 0
2 years ago
Roy agrees to work as a financial advisor on a commission basis for Secure Investments, Inc., and signs an employment contract t
Ber [7]

Answer:

Yes.  Roy can successfully challenge this arbitration award in court.

Explanation:

According to the law, an arbitration clause is a part of the contract between Roy and Secure Investments, Inc. that deals with these parties' rights and options in the event of a legal dispute over their contract.  Like in most arbitration clauses, Roy and Secure Investments, Inc. must have agreed not to sue each other but instead, to resolve their disputes through the arbitration process.  But the res judicata effect produced through an arbitration can either be challenged and appealed against or enforced.  Roy, depending on the merits of his case, can make a successful appeal against the arbitration award and not against the arbitration itself.

3 0
2 years ago
Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times mu
guapka [62]

Answer:

Equity financing

Explanation:

Equity financing is the kind of  financing, which involves or comprise of a procedure for raising the capital or funds by the sale of the shares. The companies raise the money because they have a short term need in order to pay the bills or might have a objective and needs the funds or money to invest for the purpose of growth.

So, in short, it is a form or kind of financing which comprise of raising the funds or money by selling the shares or stock in a business.

Under this case, the Navim used the equity financing as he sold the stock of the company to investors in order to finance.

3 0
2 years ago
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