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lyudmila [28]
3 years ago
12

Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur

n on investment. The expected year-end net cash flows are $12,000 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?
Business
2 answers:
Nookie1986 [14]3 years ago
7 0
The machine's net present value is $3,481. The net present value is a method of calculating the present value of return of an investment either in capital purchases or projects. The net present value amount is acquired by subtracting the $ 37,000 initial investment from the net present value of $12,000 net cash flow for four years plus the present value of $1000 salvage value at the end of the 4th year.

Net Present Value = Present value of net cash flow + Present value of salvage value - Initial investment

$3,481 = $39,746 + $735 - $37,000
anastassius [24]3 years ago
6 0

Answer:

The answer is $3,481.

Explanation:

We have the net present value of the machine is the sum of present value of the below cash flows discounted at the required rate of return 8%:

Cash outflow at Year 0: Cost of purchasing machine $37,000

4-year annuities from net cash inflow every year: $12,000 each year.

Salvage value recovery at the end of year 4: $1,000.

So the net present value is calculated as below:

-37,000 + (12,000/8%) x [ 1 - (1+8%)^(-4)] + 1,000/(1+8%)^4 = -37,000 + 39,745.52 + 735.03 = $3,480.55

So, the net present value of the machine is $3,841 ( round to the nearest whole dollar).

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Clark Company's master budget reflects budgeted sales information for the month of June, 2019, as follows: Budgeted Quantity Bud
lesya [120]

Answer:

Total sales variance    $87,340   Favorable

See report below

Explanation:

The sales budget for the month of June would like as follows:

Budgeted Sales

Product                 units        Price     Total($)

A                        40,000       $7          280,000

B                         39,000    $9            351,000

Actual sales

Product                 units        Price     Total($)

A                        39,000       $7.10         276,900

B                        49,600       $8.90         441440

Sales Budget Report for the month of June 2019

                                Budget           Actual           Variance ($)

A                        280,000                  276,900         3,100      Unfavorable

B                        351,000                   441,440            <u>90,440  </u>favorable

   Total sales variance                                          <u>  87,340   Favorable</u>

5 0
2 years ago
g Cabal Products is a division of a major corporation. Last year the division had total sales of $10,333,500, net operating inco
timama [110]

Answer:

2.49

Explanation:

The division’s turnover is computed using the formula of turnover ratio. Divide the total sales portion of the division with the average operating assets that gives the division’s turnover.

Division Turnover= Sales / Average Operating Cost

DT= $10,333,500 / $4,150,000

DT= 2.49

The division's turnover is closest to 2.49

6 0
3 years ago
The ___ style of advertising shows ordinary people clearly using a product in a normal setting
Paha777 [63]
The answer is: SLICE OF LIFE
8 0
3 years ago
Put the following steps of the problem solving process in correct order. Question 2 options: Implement the Model Identify what i
netineya [11]

Answer:

I. Identify what is the problem

II. Acquire the data

III. Develop the model

IV. Implement the Model.

V. Do the results look right.

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

Hence, the fundamental steps of the problem solving process in the correct order are;

I. Identify what is the problem

II. Acquire the data

III. Develop the model

IV. Implement the Model.

V. Do the results look right.

7 0
2 years ago
Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter Silvia, in the event of his death. T
Anit [1.1K]

Answer:

Invalid

Explanation:

Since it is stated in the will, that upon his death should the assets be transferred, it means that Silvia doesn't get anything until Mr Jacob ceases to be alive.

With the new development as regards Mr Jacob living for 6 more months before dying, Silvia has no assets yet and as such cannot transfer anything to Jacob Jnr.

Cheers

8 0
3 years ago
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