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Maru [420]
4 years ago
15

The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for three years as a result. This expansion re

quires $28,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $2,800 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 14%?
Business
1 answer:
Elena-2011 [213]4 years ago
6 0

Answer:

NPV = $40,952.46

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-28,000

Cash flow in year 1 to 3 = $32,500 - $2,800 = $29,700

I =14%

NPV = $40,952.46

To find the NPV using a financial calacutor:

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

I hope my answer helps you

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In 2019, selected automobiles had an average cost of $12,000. the average cost of those same automobiles is now $13,200. what wa
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The rate of increase for these automobiles between the two time periods is  10%

<h3>What is automobiles?</h3>

Automobile is the wheeled vehicle usually having four wheels and generally used for the transportation purposes. For example :- car, buses, trucks, bike etc.

In the above case, the average cost of the automobile is $12000 in 2009 but now it has increased to $ 13200. For the calculation of the increased rate of the auto mobile following formula is used as follows:-

Increased rate = (current value -Initial value )/current value * 100

                         =( $13,200 -  $12,000)/  $12,000 *100

                          =$1200/ 12000 *100

                          = 10%

                           

Therefore, the rate of the increase for these automobile between 2 periods is 10%.

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3 years ago
The rule of equal marginal utility per dollar spent suggests that consumers maximize utility by A. Equalizing across goods and s
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Explanation:

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3 years ago
What is any proprietary software licensed under exclusive legal right of the copyright holder? multiple choice question. closed
Tomtit [17]

A closed source is a proprietary software licensed under the exclusive legal right of the copyright holder.

<h3>What is copyright?</h3>
  • A copyright is a sort of intellectual property that, typically for a certain period of time, grants its owner the sole authority to reproduce, transmit, adapt, exhibit, and perform a creative work.  
  • The creative work could take the form of something musical, artistic, educational, or literary.
  • A creative work's original expression of a concept is what copyright is meant to protect, not the idea itself.
  • Based on criteria of public interest, such as the fair use doctrine in the US, a copyright may be subject to limitations.
<h3>What purpose does copyright serve?</h3>
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6 0
2 years ago
In the bottom of the 9th inning in a tie game, the leadoff batter for the home team hits a double. According to researcher Tom T
den301095 [7]

Answer:

  • <u><em>0.881</em></u>

Explanation:

The <em>minimum probability of a successful bunt that would warrant using the bunt </em>is that probability that, at least, does not decrease the probability of winning after the<em> batter hit </em>the <em>double</em>: <em>0.807.</em>

Call p the probability of a succesful sacrifice bunt.

Using a probability tree diagram:

  • successful sacrifice bunt: p

                                                  - win: 0.830

                                                   - loose: 0.17

  • unsucessful sacfifice bunt: ( 1 - p)

                                                     - win: 0.637

                                                     - loose: 0.363

                           

From that, the probability of winning is 0.830(p) + 0.637(1 - p)

You want to determine p, such that 0.830(p) + 0.637(1 - p) ≥ 0.807

<u>Solve for p</u>:

  • 0.830p + 0.637 - 0.637p ≥ 0.807
  • 0.193p ≥ 0.170
  • p ≥ 0.8808

Rounding to thousandths, <em>the minimum probability of a succesful bunt that would warrant using the bunt is </em><u><em>0.881.</em></u>

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4 years ago
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