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olga55 [171]
3 years ago
14

Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

ompany has mineral rights.
An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:

Cost of new equipment and timbers $275,000
Working capital required $100,000
Annual net cash receipts $120,000
* Cost to construct new roads in year three $40,000
Salvage value of equipment in four years $65,000
*Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth.

The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 20%.
Required:
Determine the net present value of the proposed mining project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).)

Business
1 answer:
ad-work [718]3 years ago
4 0

Answer: $7924. 5

Explanation:

Given the following :

Cost of new equipment and timbers - $275,000

Working capital required - $100,000

Annual net cash receipts - $120,000

Cost to construct new roads in year three - $40,000

Salvage value of equipment in four years - $65,000

Kindly check attached picture for Explanation

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Bond [772]

An increase in aggregate demand when the economy is below potential output increases real output and has little or no effect on price levels.

The Keynesian aggregate supply curve shows that the AS curve is fairly flat. This means that during economic downturns, firms supply the quantity of goods demanded at a particular price level.

The Keynesian zone is on the left side of his SRAS curve and is fairly flat, so movements in aggregate demand affect production but have little effect on price levels.

The Keynesian model suggests that in the short term less flexible wages and prices will push the aggregate supply curve upward. This model makes it more likely that the economy will fall below the full employment level. This means companies can hire new workers and increase production without raising wages or prices.

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2 years ago
Suppose that prices in the United States rise relative to prices in France. We expect that (on the foreign exchange market) the
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Answer:

Decrease , Increase

Explanation:

Rising prices of goods and commodities in the United States would absolutely lead to a decrease in demand of the US dollars. This is principally due to the fact that, elsewhere, there is an alternative that costs lesser and hence, there would be a shift in sourcing, making the US dollars weakens.

Now, it is established that demand and supply are an inverse relationship. Due to the fact that demand is low, there’ would be an increase in supply of the currency in the foreign exchange market died to tube fact that there has been an increase in supply for it

4 0
3 years ago
Ceramic Customs Co. requires a specific type of ceramic to make custom-made tiles. Since only one supplier makes that particular
kramer

Answer:

a. The supplier has more bargaining power than the firm.

Explanation:

This is an example of one of Porters' five forces. The supplier has a monopoly and thus entertains a high market share. This means that the supplier has more bargaining power than the firm as if the firm wants the ceramic there are no alternative options available for the firm; however, if the firm does not want supplies, the supplier can find plenty of firms that may need the ceramic thus making supplier more powerful than the firm.

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Not paying what you owe will add an extra 0.5 percent each month to your overall IRS debt.

If you did not file on time and did not pay any tax you owed, you are subject to both penalties. However, the IRS actually gives you a bit of a break. The maximum penalty that you’ll pay for both in any given month is 5 percent, rather than 5.5 percent.

If you don’t file or pay for five months, the failure-to-file penalty will max out at 25 percent of your unpaid taxes. But the 0.5 percent failure-to-pay penalty will continue to accrue, up to another 25 percent of what you owe, until the tax is paid.

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Explanation:

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