The net present value of the proposed project is closest to -$80,822.
Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :
PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r
PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09
PVIF of an annuity = 3.240 (rounded to three decimals)
PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)
NPV = PV of cost savings - Value of investment
NPV = 2,59,178
- 3,40,000
Answer:
correct option is a. decrease by $80,000
Explanation:
given data
stock dividend = 10%
common stock = $5
Chief = 80,000 shares
market value = $10
to find out
Chief's retained earnings will
solution
here retaining earning will be decrease by the maount of stock dividend that is
retaining earning = $80,000 × 10 % × $10
retaining earning = $80,000 × 0.10 × $10
retaining earning = $80000
so here correct option is a. decrease by $80,000
already answered this question for you in a previous post.
Answer:a. an upward-sloping short-run aggregate supply curve
Explanation:
variable a represent an upward sloping short run aggregate supply curve.
The slope of the supply curve is positive which tells us that the quantity supplied has a positive relationship with Price.When price increases the quantity supplied will increase because the law of supply states that more quantity is supplied at a higher price
