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Anna [14]
2 years ago
4

Daniel's Market is considering a project with an initial cost of $176,500. The project will not produce any cash flows for the f

irst three years. Starting in Year 4, the project will produce cash inflows of $127,500 a year for three years. This project is risky, so the firm has assigned it a discount rate of 17 percent. What is the project's net present value?
Business
1 answer:
ohaa [14]2 years ago
6 0

Answer:

NPV = -$601.026

Explanation:

Using a financial calculator , you can solve this question with the following inputs and using the CF function. I'll be using TI BA II plus financial calculator;

After keying in each CF , press ENTER and scroll down twice before keying in the next cashflow;

CF0= -176,500

CF1= 0

CF2=0

CF3 =0

CF4 =127,500

CF5= 127,500

CF6 = 127,500

then press "NPV" button, then I = 17 and press CPT.

Therefore NPV = -$601.026

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Because of this adaptability to social environments they go into careers like public relations, sales, diplomacy, and law.

They may buy a product based on how it looks even though it's performance is not that good. For example buying a fancy phone.

They are more attracted by the image of the product.

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________ are a special form of incentive compensation. these plans provide employees the option or right to buy a certain number
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Employee Stock because thats The definition

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In the exact moment you run out of laundry detergent and realize you need to pick some up at the store, you are in the ________
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With the decline of fuel price globally, airline companies continue to reap the benefits. What impact will this have an Emirates
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1 year ago
The Buttercrust Pizza Company sells pizzas in two different sizes—medium and large. The number of medium pizzas sold is twice th
Ivenika [448]

Answer:

False

Explanation:

The weighted average contribution margin is calculated by multiplying individual contribution margin with respective size pizzas (i.e number of units sold) then total contribution margin (i.e of both medium and large size) is divided upon total number of units sold, see as follows:

According to Buttercrust Pizza company's sales data medium pizzas sold are twice the number of large pizzas. Now here we have to take an assumption since we aren't given actual sales units. Keeping in mind the sales data we can assume that 100 units of medium pizzas and 50 units of large pizzas are sold during the period.

Contribution margin of medium pizza: (CM× units of medium size pizzas)

Contribution margin of large pizza: (CM× units of large size pizzas)

Contribution margin of medium pizza: $10× 100 = $1000

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(Disclaimer: the solution of this question has been concluded using self-induced assumptions.)

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