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mezya [45]
3 years ago
15

MC Qu. 112 A company is considering... A company is considering the purchase of new equipment for $105,000. The projected annual

net cash flows are $41,000. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 8% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 8% 1 0.9259 2 1.7833 3 2.5771 What is the net present value of this machine assuming all cash flows occur at year-end
Business
1 answer:
Alina [70]3 years ago
3 0

Answer:

Net Present Value =  $660.98  

Explanation:

<em>The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite. </em>

NPV of an investment:  

NPV = PV of Cash inflows - PV of cash outflow  

<em>PV of cash inflow = A× (1- (1+r)^(-n))/r </em>

A- annul cash inflow, r- 8%, n- 3

PV of cash inflow= 41,000× (1- 1.08^(-3))/0.08

=   105,660.98  

Initial cost = 105,000

NPV =  105,660.98  - 105,000

= $  660.98  

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The three primary policy tools available to those officials in charge of our country's monetary policy are a reserve requirement
Olenka [21]

Answer:

a. reserve requirements, the discount rate, and open-market operations.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

Additionally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).

The three (3) primary policy tools available to the governmental officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.

3 0
2 years ago
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uysha [10]

Answer:

1,               Compass Point Wireless

                  Balance sheet (partial)

Current Liabilities:                                $

Accounts Payable                            71,000

Interest Payable                               17,000

Salaries Payable                               10,500

Unearned Revenue                          2,400

Current Portion of Bonds payable  24,000

Total current Liabilities                 $ 124,900

Long term Liabilities                               $

Mortgage Payable                              80,000

Bonds Payable                                    64,000

Premium on Bonds Payable               10,000

Total long term liabilities                 $154,000

Total liabilities = Total current Liabilities + Total long term liabilities

=  $ 124,900 + $154,000

= 278900

2. Debt        Stockholders' equity           Debt to equity ratio

 278,900             160,000                             1.74

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3 years ago
Recommend further strategies companies woolworths in south africa may use to protect the environment
djverab [1.8K]

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We care about the environment and strive towards a zero net impact and transition to a low-carbon future. We care about how our products are made and are committed to a completely transparent, traceable, and ethical supply chain.

Conclusion Woolworths has a potential customer retention marketing strategy. Geographic segmentation is the company's greatest strength. However, the price competition facing the organization in the Australian market is very dominant.

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3 0
1 year ago
A straight-line production possibilities frontier assumes Group of answer choices the more resources a society uses to produce o
liubo4ka [24]

Answer:

the opportunity cost of producing a good is constant as more and more of that good is produced

Explanation:

In the case of the  production possibilities frontier i.e. on the straight line presumes that the opportunity cost for generating the good should be the similar or constant when the more and more goods are generated or produced

So as per the given options, the above statement should be selected

And, the same is to be relevant

5 0
2 years ago
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Harrizon [31]

Answer:

B) a decentralized structure.

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In a decentralized organizational structure, many decision making responsibilities are delegated from upper management to middle and lower management. Most normal day-to-day decisions are made by entry level employees and lower management. The company's organizational structure is not rigid and most decisions can be made rather quickly.

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