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
Arlecino [84]
4 years ago
10

The black horse is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by

$6,500 in year four. the cost of the project is $38,000. what is the profitability index if the discount rate is 7 percent? 0.96 0.99 1.04 1.09 1.12
Business
1 answer:
lara [203]4 years ago
4 0
0.96. 

To best compute this problem, use your financial calculation to input the initial outflow (investment) of $38,000 and the four cash inflows ($12,000 in each of Yr 1, 2, and 3, and $6,500 in Yr 4). Then use the NPV calculation with the 7% discount rate to find the NPV for the project of -$1,549. 

Using this NPV along with the initial investment, compute the profitability index by adding the NPV and the initial investment then dividing this sum by the initial investment. 

profitability index = (NPV + initial investment) / initial investment
0.96 = (-$1,549 + $38,000) / $38,000
You might be interested in
Who knows who bk37613 is?
Usimov [2.4K]

Answer:

Im bk37613... and im ur worst nightmare

Explanation:

<u>JK!!!!!!!!</u>

6 0
3 years ago
Read 2 more answers
What are some ways you deal with stress at school or at home? How could you use those techniques in the workplace? PLZZZZZ!!!!
Gnoma [55]
1. Take a break when needed
2. Reward yourself when you are finshed
3. Spend time with friends and family when you have free time
4. Get 8 hours of sleep a night
5. Always eat breakfast and don’t skip any meals.
6. Meditate
7. Get up and stretch your legs if you have a desk job
8. Deep breathing
9. Play relaxing music
10. Reduce your caffeine intake is a big one


Hope this helps :D
4 0
3 years ago
The employees of neat clothes work monday through friday every other friday the company issues payroll checks totaling 36,000. T
3241004551 [841]

Answer:

Neat Clothes

1. Can you explain how did we get 22,400?

The total wages for 2 weeks or 10 days (5 days each) is $32,000.  For the weeks under review, only 7 days are worked in June, the remaining 3 days are in July.  To calculate June salaries alone the $32,000 is divided by 10 days, to get the wages per day, and then multiplied by 7 days for the seven days in June.

2. Why we divide 7 over 10? What does 7 mean and what does 10 represent?

The 7 means the days of work done in June and 10 represents the 2 weeks for which wages are being calculated.

So, dividing 7 over 10 gives the proportion of June salaries from the total of $32,000.

Explanation:

As above.

6 0
3 years ago
Suppose that you take $150 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio
PilotLPTM [1.2K]

Answer:

The largest amount by which the money supply can increase is $1,875

Explanation:

According to the given data, we have the following:

Checking/Demand Deposit = $150 (which is assumed to be the part of new money supply)

Required reserve ratio = 8% = 0.08

Therefore, first we need to calculate the money supplier as follows:

Money multiplier 1/rr

Money multiplier = 1/0.08

Money multiplier = 12.5

Hence for $150 deposited the money supply will increase by $(150×12.5) =$1,875

The largest amount by which the money supply can increase is $1,875

7 0
4 years ago
Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost
lisabon 2012 [21]

Answer:

Quality modification

Explanation:

Quality modifications can be defined as changes that relate to a product's quality in terms of dependability and durability and are mostly executed by changes in the raw materials or production process and techniques.

4 0
4 years ago
Other questions:
  • Which of the following statements is true? Multiple Choice Passively managed funds do not pay dividends. Passively managed funds
    9·1 answer
  • Lily used to make customized mugs for her customers. She bought regular mugs, painted designs on them, and then resold them. Rec
    11·1 answer
  • A point inside the production possibilities curve represents a combination of goods that is
    6·1 answer
  • The Department of Commerce in Washington D.C. is developing the macroeconomic report for the nations previous economic quarter.
    12·1 answer
  • Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rate
    11·1 answer
  • In what order are the following financial statements prepared:
    11·1 answer
  • BRAINLIEST The process you use to make your business more successful is known as
    6·1 answer
  • Darl is in charge of facilities management at his company. He also believes in helping the environment. He knows the company can
    7·1 answer
  • A firm currently produces 1000 units of output and has total costs of $15,000 and fixed cost of $3,000. What is the firm’s avera
    5·1 answer
  • A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $514, and B for $5
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!