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
wolverine [178]
3 years ago
6

Norman Co. wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end net cash flows are $12

,000 in each of the first three years, and $16,000 in the fourth year. What is the machine's net present value (round to the nearest whole dollar)?
Business
1 answer:
umka21 [38]3 years ago
7 0

Answer:

Year      Cashflow    [email protected]%           PV                    

                   $                                  $                                                                                                                    

0                (40,000)     1              (40,000)                                                                                                                                                                                                    

1                   12,000      0.9259      11,111      

2                  12,000      0.8573       10,288

3                  12,000      0.7938        9,526                                                                                                                                    

4                  16,000      0.7350        <u>11,760</u>

                                             NPV   <u> 2,685</u>

<u />

Explanation:

Net present value is the difference between present value of cash inflows and initial outlay. The present value of cash inflows were obtained by multiplying the cash inflows by discount factors.                                                                                                                                                                                                                                                            The discount factors were calculated  using the formula (1 + r)-n,  where n represents number of years and r denotes discount rate.                                      

You might be interested in
Reuben forces his way into the house of an elderly couple. He tells the lady that if she does not help him in carrying out a ban
Paul [167]

Answer:

Duress/Coercion/Compulsion

Explanation:

Duress or Coercion or Compulsion: This type of defense involves someone else threatening to use force or violence to get you to do something against your better judgment. Essentially, it means you were forced to commit a crime. In this case, Reuben want to entangle the elderly lady into the crime of bank heist by threatening to shoot her husband.

For a defense of Duress/Coercion/Compulsion: the person must be forced to commit the offence. The person under duress (illegal coercion usually through being threatened or the use of violence) must be present when the offence is committed. The person must believe that the threat will be carried out.

4 0
3 years ago
Read 2 more answers
Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following i
Oxana [17]

Answer and Explanation:

The preparation of the operating activities section is shown below:

                                         Rodriguez Company

                             Statement of Cash Flows (partial)

Cash flows from operating activities:  

Net loss $ (6,400)  

Adjustments  

Add: Depreciation expenses $4,500

Add: Amortization of copyright $200

Add: Decrease in accounts receivable $5,000  

Add: Increase in salaries payable $11,000  

Less: Decrease in other current liabilities -$1,800

Net cash flow from operating activities $12,500

The negative sign reflects the cash outflow and the positive sign reflects the cash inflow

3 0
3 years ago
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices,
Svetlanka [38]

Answer: a) $30,400

b)$10,394

c)$16,830

d)$8,015

e)$76,626

Explanation:

When a credit term such as 2/10, n/30 is given, it means that the buyer is liable for a 2% discount if they pay within 10 days otherwise they must pay within 30 days.

Discounts are applied AFTER returns are subtracted.

Also any freight charges are charged to the buyer.

With that said, let's calculate this with gusto

a) No discount. Returns of $1,600

= 32,000 - 1,600

= $30,400 is amount to be paid.

b) Freight charges of $300. 2% discount. Returns of $2,500

= (1-0.02)*(12,800 - 2500) + 300

= $10,394 is amount to be paid.

c)Discount of 1%. Returns of $4,000.

= (21,000-4000) * ( 1 - 0.01)

= $16,830 is amount to be paid.

d) Freight charges of $175. Returns of $1,000 and discount of 2%.

= (9,000 - 1,000) * (1 - 0.02) + 175

= $8,015 is amount to be paid.

e) Discount of 1%. No returns.

= 77,400 ( 1 - 0.01)

= $76,626 is amount to be paid.

8 0
3 years ago
Diego's company was bidding on the construction of a new penguin display at a zoo. When putting together his bid, Diego began by
lisov135 [29]

Answer:

Target costing

Explanation:

Target costing is a demand-based pricing strategy in which the budget is determined based on a target cost that is stablished according to the customer's willingness to pay. The cost of production added to the desired profit margin should not surpass the customer's willingness to pay in order for this method to be applied.

6 0
3 years ago
Suppose a small country has a comparative advantage in the production of consumer electronics, and it has one major electronics
zlopas [31]

Answer:

Imports create greater competition in the domestic marketplace.

Explanation:

Comparative advantage is defined as the ability of a company to produce goods at a lower opportunity cost than other competitors. They can now sell the goods at lower prices.

If the company in this scenario have competitive advantage in producing electronics then it is xheap for them to produce.

When they export electronics and import again, it can only mean that the imported electronics have a competitive edge that the company wants to take advantage of. For example higher quality than what is available locally.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in
    9·1 answer
  • Julia is preparing the balance sheet for her company. building and land are the only two assets classified as property, plant, a
    9·1 answer
  • Engaging directly with the customer costs a business less in advertising then using traditional channels such as magazines and b
    15·1 answer
  • Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc, as she attempts to make sales to food
    7·1 answer
  • (Last Word) From 2006-2010, the federal government paid $600 million in retirement benefits to deceased federal employees, with
    8·1 answer
  • I need help with these questions.
    11·1 answer
  • Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback
    11·1 answer
  • Historically, a factory has been able to produce a very specialized nano-technology component with 35% reliability, i.e., 35% of
    12·1 answer
  • Case A.
    15·1 answer
  • The old Gross National Product (GNP) measurement was replaced by the newer Gross Domestic Product (GDP) definition in 1992. What
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!