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
Natali5045456 [20]
3 years ago
5

Management Theories, Inc. at a cash price of $1.5 million. Management Theories, Inc. has short-term liabilities of $500,000. As

a result of acquiring Management Theories, Inc., Marketing Concepts, Inc. would acquire the copyrights to a national best-seller which would provide an estimated cash flow of $300,000 for the next five years. The firm has a cost of capital of 20 percent. The approximate net present value of this acquisition is
Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer:

$1,102,820

Explanation:

 The computation of the net present value is shown below:

= Present value of yearly cash inflows - initial investment

where,

Present value of yearly cash inflows is

= Annual year cash inflows × PVIFA factor

= $300,000 × 2.9906

= $897,180

And, the initial investment is

= $1,500,000 + $500,000

= $2,000,000

So the net present value is

= $897,180 - $2,000,000

= $1,102,820

You might be interested in
Chris would like to conduct a study on the effectiveness of a new substance-abuse treatment program. He has a sample of particip
Agata [3.3K]

Answer:

The correct answer is letter "A": nonequivalent group.

Explanation:

While conducting studies, nonequivalent groups are those where the target audience is not selected randomly. Instead, the participants are chosen generating another group represented by all those individuals who match the research criteria but, because of a reason, were not selected.

<em>There are different types of nonequivalent groups such as posttest only nonequivalent groups or pretest-posttest nonequivalent groups, for instance.</em>

7 0
3 years ago
If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 uni
Lyrx [107]

Answer:

a) True

Explanation:

Sales = Opening + Production - Closing

$200,000 = $22,000 + Production - $24,000

Production = 202,000 Units

Hence, the answer is a. True

4 0
2 years ago
The following is an example of _____ stop by our store this Saturday between 2 and 4 to get a free gift
Y_Kistochka [10]

Answer: a call to action

Explanation:

6 0
3 years ago
The federal reserve's target rate for the federal funds rate is an extra policy tool for the central bank, in addition to and in
blondinia [14]

Answer:

Commits the fed to set a particular money supply so that it hits the announced target

Explanation:

The target rate and money supply need to be alligned for the FED to achieve its goals.

8 0
3 years ago
the amount of goods and services produced by an economy divided by the amount of resources used to make those goods and services
Elenna [48]
Gross dometic product
3 0
3 years ago
Other questions:
  • Costs that can be traced are considered to be:
    11·1 answer
  • If the donor dies in the year in which a gift is made, the gift tax return
    9·1 answer
  • Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is increased with $140,000 of direct mate
    7·1 answer
  • Managers use a predetermined overhead rate for which of the following reasons?
    6·1 answer
  • By january 2014 the us population had grown to 317.3 million and the us federal debt was a reported $17.3 trillion. calculate th
    9·1 answer
  • In 2018, Bratten Fitness Company made the following cash purchases:
    12·1 answer
  • The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $125 per share for months, and you believ
    8·1 answer
  • One of the following is not involved in CVP analysis. a. sales mix. b. unit selling prices. c. fixed costs per unit. d. volume o
    10·1 answer
  • Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per
    10·1 answer
  • How to calculate a trial balance​
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!