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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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Masterson Company's budgeted production calls for 68,000 units in April and 64,000 units in May of a key raw material that costs
Finger [1]

Answer:

The budgeted materials needed in units for April = 67000 litres

Explanation:

The budgeted  production for April = 68000 units

The budgeted  production for may = 64000 units

The cost of raw material per unit = $1.70 per unit

It is given that at the end of each month the inventory should be = 25%

The April 1 inventory = 17000 units

Now calculate the material required for April production:= [ Materials needed + ending inventory requirements - beginning inventory available ]= [ 68000 + (64000 × 25%) – 17000 ] = 67000 Litres

Therefore, the budgeted materials needed in units for April = 67000 litres

7 0
3 years ago
The current sections of Whispering Winds Corp.’s balance sheets at December 31, 2019 and 2020, are presented here. Whispering Wi
storchak [24]

Answer:

The amount of cash provided by  operating activities is $155,000

Explanation:

The net cash provided by operating activities is shown below by the cash flow statement extract:

Net income                                                                 $152,000

depreciation  expense                                             $24,900

increase in accounts receivable($109700-$77900)($31,800)

Decrease in inventory($171,900-$157,000)              $14,900

increase in prepaid expenses($26,700-$25,100)   ($1,600)

increase in accrued expenses($14,600-$8400)      $6,200

decrease in accounts payable($95,100-$85,500) ($9,600)

net cash provided by operating activities                $155,000

Note:

An increase in liability means depriving the other party some cash,hence it is positive and vice versa.

4 0
3 years ago
What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by t
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Answer:

Amount to be paid annually by Ned Winslow = $8461.35

Explanation:

Fv = <u>A ( 1 + r)∧n  - 1 </u>

              r

90,000   =   <u>A  ( 1 + 0.08)∧8  - 1</u>

                         0.08

90,000 =   <u>A ( 1.8509 - 1)</u>

                       0.08

90,000  =   10.6366A

A =     90,000/10.6366

=   $8,461.35

3 0
3 years ago
Read 2 more answers
He offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0
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If he offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. The expected value of the annual bonus amount will be: $3,700

First step

Expected value for Superior performance=$10,000×0.10

Expected value for Superior performance=$1,000

Expected value for Good performance=$6,000×0.20

Expected value for Good performance=$1,200

Expected value for Fair performance=$3,000×0.50

Expected value for Fair performance=$1,500

Expected value for Poor performance=$0×`1,500

Expected value for Poor performance=$0

Now let determine the total  expected value of the annual bonus amount

Expected value of annual bonus amount=$1,000+$1,200+$1,500+$0

Expected value of annual bonus amount=$3,700

Inconclusion if he offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. The expected value of the annual bonus amount will be: $3,700

Learn more here:

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3 years ago
Checks written in late December do not appear on a December 31 Bank Statement because they were not cleared by the bank as of Ma
Shkiper50 [21]

Answer:

B) Subtract them from the bank balance.

Explanation:

When you are adjusting your bank statement you must subtract any outstanding checks and add any deposits in transit.

In this case, the checks that were written at the end of December will probably be cashed during the next months, but the company must adjust their bank balance because they know that the checks will eventually be cashed, sooner or later.

6 0
3 years ago
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