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IgorLugansk [536]
3 years ago
12

9. Mackenzie PLC is considering expanding a production line. The new equipment for the line will cost $255,000. In addition, the

cost of delivery is $12,250 and there is an annual maintenance contract for $1,500. The new line is expected to generate cash flows for the next four years of 65,000; 98,000; 126,000; and 132,000. Mackenzie's discount rate for the project is 9 3/8%. The net present value of the project is closest to:
Business
1 answer:
NNADVOKAT [17]3 years ago
8 0

Answer:

Net Present Value = $59,632.78

Explanation:

<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project. </em>

<em>NPV = PV of cash inflow - PV of cash outflow </em>

Present value of cash inflow:

65,000 × (1.09375)^(-1) + 98000 ×(1.09375)^(-2)+ 126,000 ×(1.09375)^(-3)+  132,000 × (1.09375)^(-4)= 326882.7792

PV of annual maintenance cost :

=1,500 × (1- 1.09375^(-4))/0.09375

=4819.84773

NPV = 26882.7792  - 4819.84773 - (255,000+12250)

= 59,632.78

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2.The core capabilities of Google, Walmart and Amazon include: excellent work culture, buying power, supply chain management, excellent use of information technology to support business, logistical superiority and international growth.

3. There are new market to which these companies could creatively apply their core capabilities. For example, Amazon can start offering assistance to researchers to write their scientific journals and to help them market it. Walmart can carve out a new market for itself by allowing customers to leave a list of what is needed every month. Walmart will then be supplying these to the people on a regular monthly basis. Google can expand its business to remote countries of the world, where internet access is not known yet by facilitating such in those areas. Google can also offer to help people search for what they need for payment.
6 0
3 years ago
During 2019, its first year of operations, Bento Steel Corporation reported a net operating loss of $500,000 for financial repor
erastovalidia [21]

Answer:

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Explanation:

Pretax accounting income for 2020 = $100,000

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Therefore, The amount of net income reported in 2020 income statement would be $75,000.

8 0
3 years ago
Ellen supports her family as a self-employed attorney. She reports $90,000 of income on her Schedule C and pays $8,000 for healt
stepladder [879]

Answer:

$14500

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Explanation:

3 0
3 years ago
The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Demand for the planters is stable and aver
Korolek [52]

Answer:

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EOQ = 5,000 units

6 0
2 years ago
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5 0
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