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Irina18 [472]
1 year ago
11

Project marvel is a five-year project. The project has a total cash inflow of $350,000. The present value of such inflows is $27

5,000. The project requires an initial investment of $200,000 and additional working capital of $25,000. What is the net present value of the project?.
Business
2 answers:
Paha777 [63]1 year ago
8 0

The net present value of the project is $50,000

<h3>What is Capital budgeting?</h3>

A company's investment initiatives are evaluated as part of the capital budgeting process. One of the methods utilized in this evaluation is the computation of Net Present Value (NPV). This calculation comprises discounting cash flows that arise from starting the project or investment at the beginning stage before the project or investment is launched, using a suitable discount rate.

Solution:

present value = $275,000.

initial investment = $200,000

additional working capital = $25,000.

total investment = $200,000+$25,000

                           = $225,000

NPV= 275,000-225,000 = 50,000

To learn more about Capital budgeting visit:

brainly.com/question/23719404
#SPJ4

Yuri [45]1 year ago
5 0

The net present value of the project is $50,000

  • The net present value of Project Marvel's future cash inflows has already been determined, and the outcome is $275,000
  • The cash outflows are described as an initial investment of $200,000 and further working capital of $25,000.
  • Therefore, the total cash outflows for the current period would be $225,000.
  • Project Marvel has produced a net cash inflow of ($275,000 - $225,000)which is $50,000.

<h3>Capital budgeting – what is it?</h3>
  • The capital budgeting process includes an evaluation of a company's investment efforts.
  • The calculation of Net Present Value(NPV).  is one of the approaches used in this evaluation
  • Using a suitable discount rate, this calculation involves discounting cash flows that result from launching the project or investment at the planning stage before the project or investment is initiated.

To learn more about capital budgeting visit:

brainly.com/question/23719404

#SPJ4

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Answer:

profit sharing

Explanation:

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3 years ago
Match the following terms with their definitions. Salary, rewards, net pay, occupation, costs, benefit, deduction1. a fixed amou
Katena32 [7]

Answer:

1. A fixed amount of money periodically paid to a person for work – Salary

2. The price paid to acquire, produce, or accomplish something – costs

3. The portion of the wages that the employee actually gets to take home - net pay

4. Perks provided by your employer – benefit

5. Something that causes or increases personal satisfaction – rewards

6. An amount that is subtracted from your paycheck employee – deduction

7. A person's usual work or business; a way of earning a living - occupation

Explanation:

1. The salary is defined as the amount received by a person for work, this income does not include any extra benefit. to be considered as a salary it has to be paid periodically.

2. The cost is the expense caused for the production of a product, in the case of a service is the cost of offering it. includes direct and indirect labor force cost, amortized costs of the machinery and supplies (for products).

3. The net pay is the salary amount paid to an employee after the deduction of any amount legally recognized, it may include taxes and other items.

4. The benefits are extra gains that an employer may give to workers, different from the salary amount, it may include bonus or specific medical insurance advantages.

5. The rewards are non-usual prizes or recognitions received by people due to a personal or labor goal.

6. The deduction is al legal reduction done by a company in the payment of an employee.

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4 0
3 years ago
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,750,000 (250,00
Zepler [3.9K]

Answer:

Allocated overhead= $1,430,600

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $3,750,000 (250,000 hours at $15/hour) and that factory overhead would be $1,550,000 for the current period.

The records show that there had been 230,000 hours of direct labor.

Using direct labor hours as a base.

Predetermined overhead rate= total estimated manfacturing overhead for the period/ total amount of allocation base

Predetermined overhead rate= 1555000/250000= $6.22 per hour

Allocated overhead= Predetermined overhead rate*actual hours= 6.22* 230000= $1,430,600

7 0
3 years ago
A cement manufacturer has supplied the following data:
Vesnalui [34]

Answer:

d. $2.10 per unit

Explanation:

Calculation for What is the company's unit contribution margin

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Variable cost = Variable Manufacturing Expenses + Variable Selling & Administrative Expenses

Let plug in the formula

Variable cost = $297,000 + $165,000

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Total Contributiom Margin=Sales – Variable Cost

Let plug in the formula

Total Contributiom Margin= $924,000 - $462,000

Total Contributiom Margin= $462,000

Now let calculate Unit Contribution Margin using this formula

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Let plug in the formula

Unit Contribution Margin = $462,000 / 220,000 Unit Contribution Margin= $2.10 per unit

Therefore the Unit Contribution Margin will be $2.10 per unit

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6 0
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