Perit Industries has $165,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat
1 answer:
The net present value of project A that Perit Industies plans to undertake is $-79,009.91.
<h3>What is the net present value?</h3>
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
- Cash flow in year 0 = -165,000
- Cash flow in year 1 - 6 = 21,00
- Cash flow in year 6 = 9500
I = 14%
NPV = $-79,009.91.
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Answer:
Capital turnover = 2.5 times
Explanation:
given data
Sales = $2,000,000
Operating income = $400,000
Total assets = $800,000
Current liabilities = $120,000
Target rate of return = 13%
Weighted average cost of capital = 6%
to find out
Portland Porcelain Works Coffee Mug Division capital turnover
solution
we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets
so
Capital turnover = ......................1
put here value
Capital turnover =
Capital turnover = 2.5 times