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shepuryov [24]
3 years ago
13

The management of Penfold Corporation is considering the purchase of a machine that would cost $440,000, would last for 7 years,

and would have no salvage value. The machine would reduce labor and other costs by $102,000 per year. The company requires a minimum pretax return of 16% on all investment projects. The net present value of the proposed project is closest to (Ignore income taxes.): Click here to view Exhibit 12B-1 and Exhibit 12B-2 to determine the appropriate discount factor(s) using the tables provided. Multiple Choice $(28,022) $96,949 $(79,196) $274,000
Business
1 answer:
AnnZ [28]3 years ago
3 0

Answer:

$(28,022)

Explanation:

The computation of the net present value is shown below:

Year Particulars Cost PV Annuity factor of $1 at 16% PV of cash flows

0 Initial machine Cost        ($440,000) 1.000 ($440,000.00)

1 - 7  Labor and other cost Saving $102,000 4.039  $411,978.00

Net Present value                                                     (28,022.00)

Refer to the PVIFA factor table

Since the net present value is negative so the project should not be accepted

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For tax reasons, your client wishes to purchase an annuity that pays $100,000 each year for 6 years, with the first payment in o
Ne4ueva [31]

Answer:

the  amount that should be invested now is $476,654

Explanation:

The computation of the amount that should be invested now is shown below:

= Payment made each year × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest

= $100,000 × [1 - (1 + 7%)^-6] ÷  7%

= $476,654

hence, the  amount that should be invested now is $476,654

5 0
2 years ago
The liabilities of Wildhorse Company are $113,000 and the owner’s equity is $235,000. What is the amount of Wildhorse Company’s
kirill [66]

Answer:

$122,000

Explanation:

i dont know i just subtracted ¯\_(ツ)_/¯

8 0
3 years ago
A home buyer can afford to spend no more than $1500/month on mortgage payments. Suppose that the interest rate is 6%, that inter
krok68 [10]

Answer:

20 years mortgage:

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interest paid     $  150,628.84

30 years mortage

maximum loan  $ 250,187.4216

interest paid     $  289,812.58

Explanation:

20 years mortgage:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,500.00

time 240 (20 years x 12 months)

rate 0.005 ( 6% annual / 12 months per year)

1500 \times \frac{1-(1+0.005)^{-240} }{0.005} = PV\\

PV $209,371.1575

Quota x number of cuotas - principal = total interest

1,500 x 240 - 209,371.16 = 150628.84

30 years mortgage

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,500.00

time 360

rate 0.005

1500 \times \frac{1-(1+0.005)^{-360} }{0.005} = PV\\

PV $250,187.4216

Quota x number of cuotas - principal = total interest

1,500 x 360 - 250,187.42 = 289,812.58

8 0
3 years ago
Bill Buckely has​ split-limit 50​/100​/20 automobile liability insurance on his 2012 Subaru. Driving home from work in a​ snowst
iren2701 [21]

Answer: The answer is given below

Explanation:

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For every accident, three dollars amount are being applied. The first limit is simply a per person limit which is the maximum amount that one injured person will get. The second limit is simply the per occurrence limit which is the maximum amount that all the injured persons will get while the third limit applies during the claim of property damage as it is the maximum amount that will be paid for damages by an insurer to property that results from the accident.

since the split is 50/100/20, it implies that $50,000 medical coverage for every injured person, $100,000 injury coverage for all accident victims and then $20,000 for property damage.

1. Bill's insurance company will pay $20000.

2. Amount Bill will pay:

= ​$17,603​ + ​$3,136​ + ​$9,659 - $20,000

= $30,398 - $20,000

= $10,398

7 0
3 years ago
The foreign corrupt practices act (fcpa) makes it illegal for us citizens to bribe high-ranking foreign officials to acquire new
Lady bird [3.3K]

<span>Proof beyond a reasonable doubt.</span>

The prosecutor bears the burden of proof and is required to demonstrate the version of their events to this standard. The prosecutor will be required to present evidence that shows beyond any reasonable doubt that the defendant is guilty before they can get a conviction.

7 0
3 years ago
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