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borishaifa [10]
3 years ago
5

Bruno's Lunch Counter is expanding and expects operating cash flows of $26,900 a year for 6 years as a result. This expansion re

quires $92,700 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $6,600 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 13 percent?
Business
1 answer:
8090 [49]3 years ago
4 0

Answer:

Net present value of this expansion project is 8234.

Explanation:

To get the net present value,  we make a cash-flow in excel. See document attached.

At moment 0 the investment is =$(92.700), also we consider the working capital =(6.600)

Moment 1 to 6 = $26.900

We calculate the Net cash flow (that is the difference between benefits and cost).

To get net present value, we use VNA formula.  ( =VNA(required rate of return; Net cash flow from moment 0 to moment 6) +Net cash flow at moment 0)

Net present value is 8234

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Answer:

Price of bond is = $ 1057

Explanation:

As we know that;

Price of bond = C * [1-(1+r)∧-n] / r  +   F / (1+r)∧n

where C = periodic coupon payment = 1000 * 6%= 60

         F = Face value of bond = 1000

        r = yield to maturity = 5% = 0.05

        n = number of periods till maturity = 7 years

         Putting values;

              = 60 * [ 1- (1+ 0.05)∧-7 ]/ 0.05  +  1000 / (1+0.05)∧7

              = 60 * (0.2893 / 0.05) +   710

             =  60 * 5.786 +  710

              =  347.16 +710

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6 0
3 years ago
A local clinic (institution) in need of more Purell antibacterial soap might purchase from Target, which is a ______ of soap, wh
oksano4ka [1.4K]

Answer:

The target is a re-seller

McGraw-Hill is a manufacturer

Explanation:

Purchasing Purell antibacterial soap from a target is re-seller, meaning the target is neither the producer nor the distributor of products but haven given name of such company like McGraw-Hill, one will know that McGraw-Hill is major publisher of books and their books are well local high school around the world. This makes the local high school that might bought from McGraw-Hill buying from a manufacturer

7 0
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James borrows $300,000 for a home from Bank A. Bank A resells the right to collect on that loan to Bank B. Bank B securitizes th
sattari [20]

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D) AIG

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We went back in time to 2008 and we are in the middle of the subprime mortgage crisis. This is an example of how mortgage backed securities and collateralized debt obligations worked.

The problem with this scenario is that in order for every company involved to be able to make a profit, the mortgages' interest rates skyrocketed which made it harder for families to pay back their loans. This eventually made the families lose their houses and that was the end to the housing bubble and the whole economy collapsed.

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True or False. Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (F
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True

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Plz mark brainliest thxxx :) hope it helps

5 0
3 years ago
Read 2 more answers
The next 5 questions use the same below information. Company C had the following investment. Help them determine the financial s
valentinak56 [21]

Answer:

$143,600

Explanation:

Calculation for What is net income for 20X1 assuming the investment is short-term

Using this formula

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Let plug in the formula

Net income for 20X1 = $1,670,200 - $1,536,600 + $10,000

Net income for 20X1= $143,600

Therefore the net income for 20X1 assuming the investment is short-term will be $143,600

7 0
3 years ago
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