1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sertanlavr [38]
3 years ago
6

Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. Th

e present value of the future cash flows generated by the project is $163,000. Should they invest in this project?
A) no, because the rate of return on the project is less than the desired rate of return used to calculate the present value of the future cash flows
B) no, because net present value is +$17,000
C) yes, because the rate of return on the project is equal to the desired rate of return used to calculate the present value of the future cash flows
D) yes, because the rate of return on the project exceeds the desired rate of return used to calculate the present value of the future cash flows
Business
1 answer:
Virty [35]3 years ago
5 0

Answer:

A) no, because the rate of return on the project is less than the desired rate of return used to calculate the present value of the future cash flows

Explanation:

The NPV is calculated by subtracting the initial investment from the Present value of the project's future cashflows;

NPV = 163,000 - 180,000

NPV = -17,000 , this eliminates choice B

NPV and IRR rule always agree on the decision to accept or reject a project so long as the pattern of cashflows is the same.

Since, the NPV is negative, this project will be rejected. For IRR rule to agree with this, the internal rate of return will also be less than the discount rate used to calculate the present value of future cashflows, making choice A correct.

You might be interested in
Which of the following activities are credits? The impact on accounts receivable from a $10 million collection from a customer.
bagirrra123 [75]

i don’t know .........

3 0
3 years ago
The balance sheet of Cattleman's Steakhouse shows assets of $85,900 and liabilities of $13,500. The fair value of the assets is
cestrela7 [59]

Answer:

$7,120

Explanation:

Given that,

Assets = $85,900

Liabilities = $13,500

Fair value of assets = $90,500

Fair value of its liabilities = $13,500

Amount paid to acquire all of its assets and liabilities = $84,120

Net assets:

= Fair value of assets - Fair value of its liabilities

= $90,500 - $13,500

= $77,000

Goodwill = Purchase consideration - Net assets

               = $84,120 - $77,000

               = $7,120

8 0
3 years ago
The Executive Director of Operations has assigned Joe Tanney the role of Team Leader for a high priority project. The task is to
svetlana [45]

Answer: Dysfunctional conflict

Explanation:

This is a team conflicts that have negative consequences on the firm.

The conflict is not multicultural because their cultures doe have an impact on the conflict results, it's equally not functional because it's not bringing in a positive results, Both gender and intergroup do not also have an effect on the conflict.

5 0
3 years ago
After several United Airlines flights were canceled because of bad weather, reservation clerks had to scramble to get passengers
ivann1987 [24]

After several United Airlines flights were canceled because of bad weather, reservation clerks had to scramble to get passengers rerouted to their destinations on other flights and/or airlines.  This is primarily an example of adaptive task performance. This is further explained below.

<h3>What is adaptive task performance.?</h3>

Generally, The capacity of a person to adjust to quickly changing work settings is what is meant by "adaptive performance." Problems can be solved imaginatively, ambiguity can be managed, new tasks can be learned, adaptation in interpersonal relationships can be shown, and emergencies can be handled. These are all aspects of adaptive performance.

In conclusion, Because of the inclement weather, numerous flights operated by United Airlines had to be canceled, and reservation clerks had to work quickly to rebook customers on other flights and/or airlines so that they could reach their final destinations. First and foremost, this is an illustration of adaptable task performance.

Read more about adaptive task performance.

brainly.com/question/14287992

#SPJ1

4 0
1 year ago
A common stock pays an annual dividend per share of $1.80. The risk-free rate is 5%, and the risk premium for this stock is 4%.
ArbitrLikvidat [17]

Answer:

The value of the stock today is $20

Explanation:

Using the CAPM equation, we first calculate the required rate of retunr on the stock.

The equation for CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the risk premium on market
  • Beta * rpM is the risk premium on stock

r = 0.05 + 0.04

r = 0.09 or 9%

The value of the stock can be calculated using the zero growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock. As the dividend from the stock is expected to remain constant through out to an indefinite period, the value of the stock today is,

P0 = Dividend / r

P0 = 1.8 / 0.09

P0 = $20

3 0
2 years ago
Other questions:
  • Thornton, Inc. has budgeted sales for the months of September and October at $ 304 comma 000 and $ 282 comma 000​, respectively.
    5·1 answer
  • Miguel is doing a research paper on new york city's stonewall riots of 1969. he visits the scene of the riots, interviews people
    6·1 answer
  • A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unproces
    12·1 answer
  • Which of the following elements establish an organization's pay structure?A. pay ranges and pay differentialsB. cost control and
    13·1 answer
  • Which of the following is not an interest earning account?
    11·1 answer
  • Juan has an essay due in English en Wednesday and a page of math homework due on Friday how should Juan approach this work
    6·2 answers
  • Suppose you own a small business and have been thinking about expanding production, including hiring more workers. Until recentl
    8·1 answer
  • Self talk, our inner voice, can be negative or positive depending on the situation.
    10·1 answer
  • Sales Mix and Break-Even Analysis Michael Company has fixed costs of $2,313,840. The unit selling price, variable cost per unit,
    13·1 answer
  • Colfax Corporation's financial statements for the current year include the following: Income from continuing operations before t
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!