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zubka84 [21]
3 years ago
12

An investment project has an initial cost of $260 and cash flows $75, $105, $100, and $50 for Years 1 to 4, respectively. The co

st of capital is 12 percent. What is the discounted payback period? 3.76 years never 3.42 years 3.68 years 3.92 years
Business
2 answers:
Free_Kalibri [48]3 years ago
6 0

Answer:

never

Explanation:

the solution is shown in the file attached

Download docx
ivolga24 [154]3 years ago
4 0

Answer:

Check the explanation

Explanation:

Year  Cash flows  Present value at 12%  Cumulative Cash flows

0              (260)                   (260)                           (260)

1                  75                    66.96                         (193.04)

2               105                     83.71                          (109.33)

3               100                      71.18                           (38.15)

4                50                      31.78                          (6.37)(Approx).

therefore: the discounted Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).

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Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen
Kaylis [27]

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

5 0
3 years ago
Net present value LO P3 Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the follow
Marysya12 [62]

Answer:

$20,996.49

Yes

Explanation:

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

NPV can be found using a financial calculator.

Cash flow in year 0 = $-250,000

Cash flow in year 1 = $83,000

Cash flow in year 2 = $43,000

Cash flow in year 3 = $76,000

Cash flow in year 4 = $127,000

Cash flow in year 5 = $49,000

I = 12%

NPV = $20,996.49

The company should accept the project because the NPV is postive.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

8 0
3 years ago
Read 2 more answers
v91. If a U.S. dollar purchases 4 Argentinean pesos, and a gallon of milk costs $3 in the U.S. and 6 pesos in Argentina what is
Alla [95]

The real exchange rate is 1 dollar = 2 Argentine pesos

The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:

  • 1 Dollar is equivalent to 4 Argentine pesos

However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:

  • 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.

In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.

Learn more in: brainly.com/question/15169469

6 0
3 years ago
identify the reason(s) that accountants use a sales returns and allowances account: multiple select question.
Sloan [31]

The reason(s) that accountants use sales returns and allowances account to keep a complete record of sales returns and allowances to calculate operating efficiency.

An accountant is a practitioner of accounting or accountancy. Accountants who have verified competency through their expert associations' certification exam ·​rely on ·​ing ə-: the device of recording and summarizing commercial enterprise and monetary transactions and reading, verifying, and reporting the effects. also: the principles and tactics of this gadget. they studied accounting as a freshman. : work executed in accounting or by using accountants.

An Accountant facilitates agencies making critical monetary decisions by collecting, tracking, and correcting the corporation's budget. they may be accountable for economic audits, reconciling financial institution statements, and making sure financial information is correct for the duration of the yr.

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5 0
1 year ago
Consumers planning to buy recreational equipment tend to buy higher quality,
Nady [450]

Answer:

The answer is: B) In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas.

Explanation:

Usually a sustained economic growth would lead to an increase in the sales of high quality products. Hill and Dale sell high quality expensive products, so the only thing that could hurt their sales is that people don't go camping anymore. The only option that could lead to lower demand is that Boravia's economy is doing so well that its citizens can now afford to travel to other countries instead of camping.  

7 0
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