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kkurt [141]
3 years ago
7

A department store sells t-shirts for $16.00. Every month that a t-shirt doesn’t sell, the store reduces the selling price by 25

%. Find the selling price of the shirt for three price reductions. A = B = C =
Mathematics
2 answers:
horrorfan [7]3 years ago
8 0

Answer:

The prices for 3 month reduction on a role will $12 to $9 to $6.75

Step-by-step explanation:

The original cost price of the t-shirt is $16

If it does not sell for the 1st month, then 25% reduction will make the new price

(16 × 25)/100 = $4

new price will be 16 - 4 = $12

For the 2nd month, the price will be

(12 × 25)/100 = $3

New price = $12 - $3 = $9

for the third month, new price will be

(9 × 25)/100 = $2.25

New price for the third month is

9 - 2.25 = $6.75

algol133 years ago
5 0

Answer:

Step-by-step explanation:

A = 25% of 16 ==\frac{25}{100}*8=\frac{1}{4}*8=2

Selling price after reduction = 16 - 2 = $14

B= 25% of 14

=\frac{25}{100}*14=\frac{1}{4}*14=\frac{7}{2}

= 3.5

Selling price = 14 - 3.5 = $10.5

C = 25% of 10.5

=\frac{25}{100}*10.5=\frac{10.5}{4}

= 2.625 = $ 2.63

Selling price = 10.5 - 2.63 = $ 7.87

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5 0
3 years ago
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,020,00
tatyana61 [14]

1. The Year-0 net cash flow is -$1,061,500.

2. The net operating cash flows in Years 1, 2, and 3 are as follows:

Year 1: $288,750 ($386,000 x 1 - 0.25)

Year 2: $288,750 ($386,000 x 1 - 0.25)

Year 3: $288,750 ($386,000 x 1 - 0.25)

3. The additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital) is $468,750 {($599,000 x 1 - 0.25) + $19,500}.

4. The NPV of the project is ($13,139).

5. The machine should not be purchased because it does not yield a positive NPV.

<h3>What is the net present value?</h3>

The net present value (NPV) shows the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

It is determined by calculating the present values of cash flows using their present value factors as below:

<h3>Data and Calculations:</h3>

Initial cash outlay = $1,061,500 ($1,020,000 + $22,000 + $19,500)

Salvage value = $599,000

Increase in net working capital = $19,500

Annual savings before tax = $386,000

Tax rate = 25%

Annuial savings after tax = $288,750 ($386,000 x 1 - 0.25)

<h3>Determination of Net Present Value (NPV):</h3>

Year      Cashflows        PV Factor     Present Value

0          -$1,061,500               1             -$1,061,500

1              $288,750          0.901           $260,164

2             $288,750          0.812          $234,465

3             $288,750          0.731            $211,076

3             $468,750          0.731          $342,656

Net present value                                -$13,139

Thus, the project should not be undertaken by The Campbell Company due to the negative NPV that it yields.

Learn more about determining the NPV at brainly.com/question/18848923

#SPJ1

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neonofarm [45]
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