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2 years ago

A negative net present value indicates that the project’s return is ________.

Business

1 answer:

Luba_88 [7]2 years ago

7 0

A negative net present value indicates that the project’s return is net loss

<h3>What is a net present values?</h3>

A net present values is a total sum of money that is currently available. It may be in terms of assets or revenue generated.

When there is a negative net present value, it means the <u>revenues generated is lower that the cost </u>of a project. This invariably leads to a loss for a particular company.

Hence a negative net present value indicates that the project’s return is net loss

Learn more on negative present values here: brainly.com/question/14960679

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Answer:

A. Patent = 28000 / 7 years = 4000

B. Goodwill = Indefinite life, so amortization is zero

C. Leasehold improvements = Construction is done on 31 December hence no depreciation for the current year

D. Ordinary repairs and maintenance = Revenue expenditure, so no depreciation

E. Machine A = Already recorded depreciation So no additional depredation as it is sold

F. Machine B (31000 - 7000) / 15 year = 1600

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3 years ago

The parents of a young child decide to make annual deposits into a college savings account. The first deposit will be made on he

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Answer:

The amount of the equal, annual deposits made on birthdays 5 through 15 is $3,970.58

Explanation:

First, let's calculate the present value of the college expenses on her 17th birthday (a year before college) using NPV formula

NPV(9%, 20000...32000) = $82,839.69

Now, its value on 15th birthday should be equal to 82,839.69 / (1 + 9%)² = $69,724.51

Using the PMT formula, we can calculate the annual amount they have to invest for 11 years to get to this sum at 9% annual rate

PMT(rate = 9%, nper = 11, pv = 0, fv = 69,724.51, 0) = $3,970.58

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3 years ago

Assume the market basket for the consumer price index has two products, bread and milk, with the following values in 2013 and

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Answer:

b. 116

Explanation:

The calculation of Consumer Price Index is shown below:-

CPI = ((Base year basket quantities × current year price) ÷ (Base year basket quantities × Base year prices)) × 100

= ((50 × $1.50) + (100 × $1.10)) ÷ ((50 × $1.20) + (100 × $1.00)) × 100

= (185 ÷ 160) × 100

= 115.6

0r 116

So, for computing the consumer price index for 2018 we simply applied the above formula.

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3 years ago

Collier Chemicals has redesigned many jobs to make the work more interesting and challenging for its employees. The company enco

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Answer:

correct option is b. frederick herzberg to increase worker motivation.

Explanation:

given data

reimbursing them up to = $7,500 per year

solution

Frederick Herzberg developed his two-factor theory from the hierarchy of Abraham Maslow to the theory of necessities. The two-factor theory basically states that employers have a set of factors that motivate them and that they have a particular set of factors that do not motivate them, and that the two factors are independent of each other.
as employers may try to motivate employees by following certain actions, but this does not mean that employees are ignored every time, because beliefs, actions, and events that lead to lack of motivation are different from those that go by. More motivation.
Factors that motivate employees include: self-awareness, complexity of work, achievement recognition, loss of responsibility.

so Collier Chemicals is adopting a strategy to meet those needs.

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3 years ago

Suppose Ginger deposits $5,000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a T-account for

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Answer:

1) Suppose Ginger deposits $5,000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a T-account for the Bank of Skidoo.

Reserves Checkable deposits

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5,000 5,000

2) The Bank of Skidoo has no excess reserves and is subject to a 6 percent required reserve ratio. Assume the Bank of Skidoo makes the maximum loan possible from Ginger's deposit to Thurston. Show this transaction in a new T-account for the Bank of Skidoo.

Reserves Loans

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5,000 4,700

300

3) Thurston decides to use the money he borrowed to purchase a sail boat. He writes a check for the entire loan amount to Gilligan's Seagoing Vessels, which deposits the check in its bank, the Paradise Bank of Kona, Hawaii. When the check clears, the Bank of Skidoo transfers the funds to the Paradise Bank. Show these transactions in a new T-account for the Bank of Skidoo.

Reserves Checkable deposits

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5,000 5,000

4,700 <u>4,700 </u>

300 300

4,400

4) The maximum amounts of deposits that can be created from Ginger's initial deposit is $_____

Increase in checkable deposits = change in bank reserves / required reserves = $5,000 / 6% = $83,333.33

The maximum amounts of loans that can be created from Ginger's initial deposit is $_____

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3 years ago