Answer:
a) Net present value of investment = $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Explanation:
Data provided in the question:
Cost of the asset = $215,000
Rate of return = 12% = 0.12
Now,
Present Value of Net Cash Flows = Net cash flow × Present value factor
also,
Present value factor = (1 + rate)⁻ⁿ
here,
n is the year
thus,
Year 1 Net cash flows Present value factor Present value
1 77,000 0.89286 68,750
2 54,000 0.79719 43,048
3 82,000 0.71178 58,366
4 172,000 0.63552 109,309
5 38,000 0.56743 21,562
Total 423,000 301,036
a) Net present value of investment = Total present value - Amount invested
= 301,036 - 215,000
= $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Answer:a url is the address of a World Wide Web page. A URL is a unique identifier used to locate a resource on the internet. It is also referred to as a web address. URLs consist of multiple parts including a protocol and domain name that tell a web browser how and where to retrieve a resource.
Explanation:
Answer:
Total FV= $21,043.97
Explanation:
Giving the following information:
Interest rate= 7% compounded annually
<u>To calculate the total accumulated future value, we need to use the following formula on each deposit:</u>
FV= PV*(1+i)^n
Deposit 1= 3,500*1.07^5= 4,908.93
Deposit 2= 5,300*1.07^4= 6,947.22
Deposit 3= 7,500*1.07^3= 9,187.82
Total FV= $21,043.97
Conduction because heat is directly transmitted through a substance where there is a difference of temp. without movement of material :)
Answer: $14,985
Explanation:
Using the Units-of-Production method means that the asset is depreciated based on how many times it is used.
The formula is;
= ( Cost - Salvage Value)/Total Usage
= (67,600 - 1,000) / 200
= $333 per concert
Equipment depreciates by $333 per concert.
First year has 45 concerts;
= 333 * 45
= $14,985
