1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iragen [17]
3 years ago
13

A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to

increase cash flows in the first year by $25,000 and in the second year by $30,000. The firm’s current fixed costs are $9,000 and current marginal cost are $15. The firm currently charges $18 per unit. ​ If the cost of capital is 5% then the net present value of the investment is a. ​$10,000 b. ​-$7,380.95 c. ​$7,380.95 d. ​$6,020.41
Business
1 answer:
Alex787 [66]3 years ago
5 0

Answer:

$51,020.41

Explanation:

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

PV = FV × (1 + r) ^ (-n) 

PV = 25,000 (1 + 5%) ^ (-1) + 30000 (1 + 5%) ^ (-2)

= 51020.41

Where PV = present value

FV = Future value = 25,000 In year 1 and 30,000 In year 2

I = interest rate = 5%

N = time = 1 ,2

I hope my answer helps you

You might be interested in
Suppose that, in an attempt to combat severe unemployment, the government decides to increase the amount of money in circulation
ELEN [110]

Answer:

increases

higher

more

lower

lower

Explanation:

If the money supply is increased. individuals would have more money and consumption would increase. Increase in consumption would lead to a rise in demand.

when demand exceeds supply, prices rise,

When there is a rise in price, it encourages producers to increase production in order to increase their profit margin.

In order to expand production, more factors of production would be needed. So, more labour would be hired. thus, unemployment would fall.

it can be seen that higher inflation lowers unemployment

5 0
3 years ago
Please help worth 100 points
UNO [17]

Answer:

19.) b, d

20.) d, a

21.) d, c

22.) a

23.) c

Hope This Helps!  Have A Nice Day!!

4 0
3 years ago
Read 2 more answers
Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value,
elena-14-01-66 [18.8K]

Answer:

2.11%

YTM 0.089142162

YTC 0.068070103

Difference: 0.021072059 = 0.0211 = 2.11%

Explanation:

To calculate each rate we must solve for a rate at which the future coupon payment and maturity (or call value) equals the market price:

This is solve for excel and goal seek tool

It could also be solve with a financial calculator

YTC:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment: $ 120

time 5 yeaars

rate 0.068070103 (solved with excel)

120 \times \frac{1-(1+0.0680701028057608)^{-5} }{0.0680701028057608} = PV\\

PV $494.5766

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity: $ 1,050 (call price)

time   5.00

rate  0.068070103

\frac{1050}{(1 + 0.0680701028057608)^{5} } = PV  

PV   755.42

PV c $494.5766

PV m  $755.4235

Total $1,250.0002

YTM:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Cuopon payment: $ 120

time 15 years

rate 0.089142162 (solved with excel)

120 \times \frac{1-(1+0.0891421622982136)^{-15} }{0.0891421622982136} = PV\\

PV $972.2006

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity $ 1,000.00

time   15 years

rate  0.089142162 (solved with excel)

\frac{1000}{(1 + 0.0891421622982136)^{15} } = PV  

PV   277.80

PV c $972.2006

PV m  $277.7995

Total $1,250.0001

6 0
3 years ago
How many calories per day would be need to allow a one pound increase in lean body weight per week during a resistance training
kari74 [83]
In order to add one pound a week, you need to approximately consume 500 more calories per day.
On top of that, you need to at least eat 1 gram of protein per your body weight, gradually increase the amount of resistance in your training and limit your cardiovascular activities to the minimum.
8 0
3 years ago
Read 2 more answers
Is sears going out of business
Sphinxa [80]
It wasn't fully announce that Sears is going out of business but rather, they are just going to close 150 of its branches this year 2017. This is according to Business insider. <span>Most of the stores will start liquidation sales on Jan. 5 and will go </span>out of business<span> in March and April. Hope this helps.</span>
7 0
3 years ago
Other questions:
  • For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian
    14·1 answer
  • What is a trade union?
    6·2 answers
  • Which of the following statements is correct?
    14·1 answer
  • Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 11,400
    6·1 answer
  • If Starbucks raises its price by 5 percent and McDonald’s experiences a 0.5 percent increase in demand for its coffee, what is t
    13·1 answer
  • When analyzing a price-earnings ratio:_________.
    6·1 answer
  • Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income sta
    5·1 answer
  • Wasson Widget Company is contemplating the production and sale of a new widget. Projected sales are $300,000 (or 75,000 units) a
    6·1 answer
  • An economic term for any person who uses goods or services. Sometimes a consumer buys a good or service. Sometimes, the goods or
    12·1 answer
  • In order to qualify as a REIT, A) at least 90% of the assets must be invested in real-estate related assets. B) a mortgage REIT
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!