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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:

The Journal entries are as follows:

(a)

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Workings:

Bad Debt Expense = 1% of Total revenue

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(b)

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To Allowance for Doubtful Accounts     $439.34

(To record the bad debts)

Workings:

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4 0
3 years ago
Your firm needs a machine which costs $260,000, and requires $47,000 in maintenance for each year of its 10 year life. After 5 y
Aleks04 [339]

Answer:

nominal tax shield in year 10: 6,812 dollars

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Explanation:

the nominal tax shield in year 10:

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considering time value of money today this tax shield is worth:

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3 0
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Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog’s ancestry, but Alyssa
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Answer:

Probably not, because Alyssa made a mistake about the dog's value, not a mistake about material fact.

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On finding out the dog is only worth $200, she will not be able to rescind the contract because the onus to ask all relevant questions about the purchase before accepting is on her.

She made the mistake of assuming the dog was worth $800. She made a mistake about the dog's value and not the material fact.

7 0
3 years ago
Read 2 more answers
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Answer:

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Accumulated expenses = 1,560,000

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Weighted average expenses =  5,870,000*0/12 = 5,870,000

Accumulated expenses = 5,870,000 - 2,156,000 = 3,716,000

Thus, the weighted-average accumulated expenditures were $3,716,000.

6 0
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