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Misha Larkins [42]
1 year 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]1 year 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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The text identifies three methods for estimating the cost of common stock from retained earnings: the CAPM method, the DCF metho
wlad13 [49]

Answer:

A. True

Explanation:

This is true, the estimate we get of the cost of common stock from retained earnings is not fully accurate. So we often use all three methods and then average out to use a reasonable estimate.

6 0
1 year ago
Jesse and Francis hear some friends talking about how much money they earn using Airbnb to rent out their room on weekends when
Kitty [74]

Answer and explanation:

Rental agreements are legal documents where the landlord or owner of the property establishes to whom, what, when, and for how much a property or part of it will be leased. The landlord becomes responsible for granting conditions that allow the regular and peaceful living of the tenants within the property and the tenant becomes responsible for damages caused to the property and for the payment of rent on a regular basis established in the agreement.

<em>In Jesse and Francis's case, they hear their friends are renting their room on the weekends using an online house rental service. Under the rental agreement that would not be allowable since Jesse and Francis's friends would be leasing a property that does not belong to them. They cannot become landlords being only tenants. The real owner of the room can even evict the tenant for breaching the contract.</em>

8 0
1 year ago
Tektron Industries has Beginning and Ending Raw Materials Inventories of $32,000 and $40,000, respectively. Direct Materials use
ch4aika [34]

Answer:

$138,000

Explanation:

The computation of the cost of Raw Materials Purchased is shown below:

= Direct materials used + ending direct material inventory - beginning direct material inventory

= $130,000 + $40,000 - $32,000

= $138,000

Simply we added the  ending direct material inventory and deduct the beginning direct material inventory  to the direct material used so that the accurate amount can come

5 0
2 years ago
Your company experienced 20% percent turnover last year. This means 20 percent of people employed at the beginning of the year w
Stella [2.4K]

Answer:

48

Explanation:

Employee turnover is the rate at which employees leave a company, whether voluntary or involuntary.

In this company, 20 percent of employees leave every year.

If the company intends to have 40 more workers, it should plan to hire the 40 plus an extra 20 percent.

The company should hire 40 plus 20% of 40

=40 + (20/100 x 40)

=40 +(0.2 x40)

=40 +8

=48

The company should hire 48 workers

3 0
1 year ago
Flo is working on a construction site when she is injured on the job in the collapse of a Girder Company-made beam. At the time,
mel-nik [20]

Answer: The correct answer is "C. Comparative negligence."

Explanation: In Flo’s product liability suit against Girder, the company can most successfully raise the defense of​ comparative negligence.

The comparative negligence defense can be used successfully because although the company is guilty of the accident, Flo is somewhat guilty in the fact that I do not use any corresponding safety equipment.

7 0
1 year ago
Read 2 more answers
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