1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
disa [49]
2 years ago
9

Henson Company has an investment opportunity that costs $9,936 and increases annual net cash flows by $3,000. Assuming a present

value factor of 3.312127, the net present value of the investment is $
Business
1 answer:
sasho [114]2 years ago
5 0

The Net Present Value of the Investment is -$1,064

<h3><u>SOLUTION</u></h3>
  • “Net present value is the present value of the cash flows at the required rate of return of your project compared to your initial investment,” In practical terms, it's a method of calculating your return on investment, or ROI, for a project or expenditure.
  • An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.

Annual Cash Inflows                   $3000

Present Value Factor                  3.312127,

Present Value of Cash Inflows   $9936

Less: Initial Investment               $11,000

Net Present Value                      -$1,064

<h3><u>EXPLANATION</u></h3>
  • In net present value method the future cash inflows rate are discounted to present net value at discount rate (PV FACTOR)
  • The rationale for discounting is money received today is more valuable than the money to be received in future.
  • So the present value of cash inflows is compared with initial investment if net present value is positive then the project is accepted otherwise its rejected.

In this case the net present value is negative, hence the project will be rejected.

To know more about Net present value, click the given links.

brainly.com/question/17185385

brainly.com/question/23857734

#SPJ4

You might be interested in
In which core leader competency do you determine information sharing strategies?
Andre45 [30]
<span>Communication is the core leader competency in which you determine information sharing strategies.
Through communication, a leader could convey the goals of the organizations and motivate all members of the group to give their best in order to achieve those goals</span>
4 0
3 years ago
suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was importe
Aneli [31]

Suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was imported. Net exports equal $4 billion.

In general, real GDP is calculated by dividing nominal GDP by the GDP deflator (R). For example, if the economy's prices rise by 1% from the base year, the deflation rate is 1.01. If nominal GDP is $1 million, real GDP is calculated as $1,000,000 / $1.01 or $990,099.

Equity and bond values ​​are not included in GDP as they are not reissued annually. They may have been issued last year. Second, the stock a person buys is goods and services, and the company reuses the money invested to buy the asset, so the value is calculated twice.

Learn more about goods and services at

brainly.com/question/25125137

#SPJ4

8 0
1 year ago
Isaac is looking for ways to offer new goods and services to his existing customers. he is pursuing a market development strateg
I am Lyosha [343]

False, this is a product development strategy.

A marketing development strategy finds <em>new </em>markets for <em>existing </em>products, which is the opposite of what Issac is doing.

7 0
3 years ago
A product sells for $30 per unit and has variable costs of $15.50 per unit. The fixed costs are $1,015,000. If the variable cost
Maslowich

Answer:

70,000 units

Explanation:

Selling price per unit = $30

Variable cost per unit = $14.60

Contribution margin per unit = $30 - $14.60 = $15.40

Fixed cost = $1,078,000

Break-even point in units = Fixed cost ÷ Contribution margin per unit = $1,078,000 ÷ $15.40 = 70,000 units

Therefore,  break-even point in units would 70,000 units.

3 0
3 years ago
The management accountant for Martha’s Book Store has prepared the following income statement for the most current year.
Tatiana [17]

Answer:

c. less corporate profits.

Explanation:

Subtract all the expenses from the revenue that are solely associated with Cookbook product line.

60000 - 36000 - 18000 - 2000 = 4000

This $4000 suggests that CookBook product line contributes profit of 4000 towards the company. So If the cookbook product line had been discontinued prior to this year, the company would have reported less corporate profits by $4000.

5 0
3 years ago
Other questions:
  • Sarah is a financial planner and wants to sell fixed-income investments. Which license does she need to procure?
    5·2 answers
  • Samuel owns a bond with a par value of $5,000 and a coupon rate of 5 percent. he will receive _____ in annual interest until the
    12·1 answer
  • All the following are benefits of attending a community college except that
    13·1 answer
  • All of the following are public relations tools except:______
    10·1 answer
  • Cellular​ Access, Inc., a cellular telephone service provider reported net income of $ 253.8 million for the most recent fiscal
    15·1 answer
  • A work-at-home opportunity is available in which you will receive 2 percent of the sales for customers you refer to the company.
    15·1 answer
  • Should P&amp;G have more or fewer marketing and advertising agencies doing its advertising?
    6·1 answer
  • The Elmo Company purchased equipment on January 1, Year 1 at a cost of $26,000. The equipment was estimated to last for 8 years
    15·1 answer
  • Good Vibrations
    9·2 answers
  • According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve in
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!