One of the advantages of communicating through email rather than through letters and telephone calls is

Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The

Over [174]

Answer:

a) Net present value of investment = $86,036

b) Since the Net present value is positive thus, Beyer should accept the investment

Explanation:

Data provided in the question:

Cost of the asset = $215,000

Rate of return = 12% = 0.12

Now,

Present Value of Net Cash Flows = Net cash flow × Present value factor

also,

Present value factor = (1 + rate)⁻ⁿ

here,

n is the year

thus,

Year 1 Net cash flows Present value factor Present value

1 77,000 0.89286 68,750

2 54,000 0.79719 43,048

3 82,000 0.71178 58,366

4 172,000 0.63552 109,309

5 38,000 0.56743 21,562

Total 423,000 301,036

a) Net present value of investment = Total present value - Amount invested

= 301,036 - 215,000

= $86,036

b) Since the Net present value is positive thus, Beyer should accept the investment

6 0

4 years ago

Explain how a school's published price (also known as<br> sticker price) and net price differs.

miv72 [106K]

Answer:

Sticker price is the published tuition and fees whereas net price is what the student pays after financial aid (much lower than sticker price).

Hope this helped! :)

5 0

3 years ago

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received

ale4655 [162]

Answer and Explanation:

The computation is shown below:

a. The amount that should be paid is

= $4,500 - $1,200 - ($4,500 - $1,200) × 2%) + $140

= $4,500 - $1,200 - $66 + $140

= $3,374

And,

b. The amount that should be paid is

= $7,650 - $450 - ($7,650 - $450) × 1%

= $7,650 - $450 - $72

= $7,128

In this way the amount to be paid in full could be determined

4 0

3 years ago

Materials that are used in manufacturing that cannot be cost-effectively traced to finished goods are called:

andreev551 [17]

Answer:

Indirect Materials. used in manufacturing that cannot be cost-effectively traced to finished goods. (//Often direct materials can be classified as indirect when their costs are very low. Indirect Labor.//)

7 0

3 years ago

Consider two neighboring island countries called Euphoria and Bellissima. They each have 4 million labor hours available per mon

Dominik [7]

From the table given, it can be deduced that Bellissima has comparative advantage in rye while Euphoria had comparative advantage in jeans.

<h3>What is comparative advantage?</h3>

It should be noted that comparative advantage simply means the ability of an economy to produce a good at a lower opportunity cost.

In this case, Euphoria's opportunity cost of rye will be:

= 16/4 = 4 jeans.

Bellisima's opportunity cost of rye will be:

= 12/6 = 2 jeans

Therefore, Bellissima has comparative advantage in rye while Euphoria had comparative advantage in jeans.

When there's complete specialization, Bellisima will produce:

= 6 × 4 = 24 million ryes

Euphoria will produce:

= 16 × 4 = 64 million jeans

After trade, the increase in production of rye will be:

= 24 - 18 = 6 million.

The increase in production of jeans will be:

= 64 - 52

= 12 million

Learn more about comparative advantage on:

brainly.com/question/7045530

8 0

2 years ago