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3 years ago

7

$2000 a year is deposited into an annuity for a child from its birth until it is 18 years old. The rate of interest is at 7%. Wh

at will the annuity be worth in 18 years?

1 answer:

Vitek1552 [10]3 years ago

6 0

I think the annuity will be worth about 41,146 in 18 years, I hope this helped :)

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At an activity level of 9,200 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $825,

dybincka [34]

Answer:

variable per unit $ 89.72

fixed cost per unit $ 26.5

total unit cost $ 116.22

Explanation:

Variable cost per machine-hour

825,420 / 9,200 = 89.72

This will keep constant at unit level thus, at 9,400 the variable cost will still be 89.72

Now fixed cost: 249,100 / 9,400 output = 26.5

This is the fixed cost per unit considering a 9,400 untis output

Now, we add them to get the total unit cost:

89.72 + 26.5 = 116.22

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3 years ago

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goblinko [34]

Answer:

npv = $92,531.34

NPV = -$13,206.90

Project A should be chosen because it has a higher NPV

Explanation:

Here is the full question :

Perit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $210,000 $0 Working capital investment required $0 $210,000 Annual cash inflows $30,000 $52,000 Salvage value of equipment in six years $9,100 $0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 15%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: a. Calculate net present value for each project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).) b. Which investment alternative (if either) would you recommend that the company accept? Project B Project A

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

NPV can be calculated using a financial calculator

Project A

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 5 = $30,000

Cash flow in year 6 = $30,000 + $9100 = $39,100

I = 15%

npv = $92,531.34

Project B

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 6 = $52,000

I = 15%

NPV = -$13,206.90

Project A should be chosen because it has a higher NPV

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3 years ago

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Answer:

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MaRussiya [10]

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