Answer:
The NPV of the project is $765.91 and option A is the correct answer.
Explanation:
To calculate the initial outlay or cost of the project, we will use the payback period of the project. The payback period is the time taken by the project's cash flows to cover up the initial cost.
A payback period of 2.5 years means that the initial cost was,
Initial cost = 2000 + 3000 + 3000 * 0.5
Initial cost = $6500
To calculate the NPV of the project, we use the following formula,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost
Where,
- CF1, CF2 , ... represents the cash flow in year 1, cash flow in year 2 and so on.
- r is the cost of capital
NPV = 2000 / (1+0.12) + 3000 / (1+0.12)^2 + 3000 / (1+0.12)^3 +
1500 / (1+0.12)^4 - 6500
NPV = $765.9137794 rounded off to $765.91
Answer:
during June balance we need pay or borrow $4100
Explanation:
given data
cash = $11200
cash receipts = $30800
cash payments = $36100
minimum cash balance = $10000
required balance = $10000
to find out
during June balance
solution
so we find balance here as
balance = cash in beginning + cash receipts - cash payments
put here all value
balance = 11200 + 30800 - 36100
balance = $5900
so here we know minimum cash balance require = $10000
so here
required balance = $10000 - $5900
required balance = $4100
so during June balance we need pay or borrow $4100
As Crunch cereal and Trix cereal are substitute goods, then, if the price of Crunch cereal increases, then, we would see that the demand curve for Trix cereals will shift to the left
<h3>What causes
demand curve to shifts to
left? </h3>
In economics, when the demand curve shifts to the left it means that determinant causes demand to drop and less of the good or service is demanded.
In conclusion, if the price of Crunch cereal increases, then, we would see that the demand curve for Trix cereals will shift to the left
Read more about demand curve
<em>brainly.com/question/1979620</em>
Answer:
The company's average days to collect receivables is 18.25 days.
Explanation:
For computing the company's average days to collect receivables, first we have to calculate the account receivable turnover ratio. The formula is shown below
Account Receivable Turnover ratio = Net credit Sales ÷ Average accounts receivable
where,
Net credit sales is given
And, the average accounts receivable = (Year 1 + Year 2) ÷ 2
= ($15,000 + $12,000) ÷ 2
= $13,500
So, Account Receivable Turnover ratio = $270,000 ÷ $13,500 = 20
Now, average days to collect receivables = Number of days in a year ÷ Account Receivable Turnover ratio
= 365 ÷ 20
= 18.25 days
Hence, the company's average days to collect receivables is 18.25 days.
<span>The rent, cable bill, and auto loan are fixed expenses that add up to $1500. $1500 divided by the $4600 total that she has is .326 so Margie spends about 33% of her budget on these fixed expenses. That is about one third of her total budget going to fixed expenses.</span>
