Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
C) $50,000,000
Explanation:
The aggregate rent is the surplus earned by the lawyers for operating over their cost at this market equilibrium.
In the picture attached, the rent is showed graphically.
At PL=$250 per hour, the amount of demanded hours is QL=1,000,000.
The oportunity cost at a zero hours level is PL(0)=$150.
The rent can be calculated as:
The aggregate rent is $50,000,000.
Answer: Hoover's days in inventory in 2011 was 50 days.
Explanation:
Given that,
Beginning inventory = $110000
Ending inventory = $70000
Cost of goods sold = $660000
Sales = $900000
Average Inventory = 
= 
= 90000
Inventory Turnover = 
= 
= 7.33
Hoover's days in inventory in 2011 = 
= 
= 50 Days
Answer:
Consumer Product Safety Act of 1972
Explanation:
Answer:
A. Line of credit
Explanation:
Renita is using a line of credit because her financing option has the following characteristics:
- A maximum amount she can withdraw, in this case $50,000
- She can draw from that maximum amount as she needs, for example, she could have one month $30,000, and the following month $20,000, effectively exhausting her credit in a two-month period.
- She can pay off her debt either at specified periods of time, or in full at any time.
All those characteristics above are specific of a line of credit.
