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Black_prince [1.1K]
3 years ago
9

Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. I

f Beene demands an annual return of 7% and pays for the project immediately, how much is it willing to pay for the project?
Business
1 answer:
mr_godi [17]3 years ago
8 0

Answer:

$714,980.95

Explanation:

The most it would be willing to pay is the present value of the cash flows

present value is the sum of discounted cash flows from a project

present value can be determined with a financial calculator

Cash flow each year from year 1 to 6 = $150,000

I = 7%

Present value = $714,980.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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B. An online bank has lower operating costs than a retail bank

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Mountaineers Inc. sells its rock-climbing shoes worldwide. Mountaineers Inc. expects to sell 4,000 pairs of shoes for $165.00 ea
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Answer:

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expected sales February, 2,000 pairs of shoes at $220 = $440,000

expected COGS = 75% of expected revenue

expected sales March, 4,600 pairs of shoes at $240 = $1,104,000

ending inventory = $18,000 plus 45% of next month's COGS

<h2>                   <u>Sales budget</u>   </h2>

Month                       January              February             March

Units                           4000                  2000                  4600

Price                           $165                   $220                  $240

Total sales               $660,000         $440,000         $1,104,000

                   

<h2><u>Inventory, Purchases and COGS Budget</u></h2>

                                                       January        February      March

cost of goods sold                        $495,000    $330,000     $828,000

<u>+ desired ending inventory           $166,500    $390,600           ?        </u>

Total merchandise required         $661,500     $720,600           ?

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Fill the blank ("__")
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The free market economy is the one where the buyers & sellers should freely select to buy or make.

The following information related to the free market economy is:

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Therefore we can conclude that the free market economy is the one where the buyers & sellers should freely select to buy or make.

Learn more about the economy here: brainly.com/question/11905095

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The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The r
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Answer:

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