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Anastasy [175]
3 years ago
10

The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

p". As a result, the cemetery project will provide a net cash inflow of $101,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. The project requires an initial investment of $1,540,000.
a-1
What is the NPV for the project if Yurdone's required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))



NPV $


a-2
If Yurdone requires a return of 12 percent on such undertakings, should the firm accept or reject the project?

Reject
Accept


b.
The company is somewhat unsure about the assumption of a 3 percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of 12 percent on investment? (Round your answer to 2 decimal places. (e.g., 32.16))



Constant growth rate %

Business
1 answer:
jenyasd209 [6]3 years ago
5 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Where Is Monetary Policy​ Stronger? In an open​ economy, changes in monetary policy affect both interest rates and exchange rate
mihalych1998 [28]

Answer:

First of all, Switzerland has one of the most open and free market economies in the world, while the US government says that our economy is open but compared to other capitalistic countries, the American economy is a very closed one.

The effects of any change in monetary policy will be more significant in a small open economy like Switzerland since foreign trade is very important to them.

An increase in the money supply will depreciate the currency of a country, and any effect on the exchange rate will affect more an open economy.

5 0
2 years ago
Match the below mention description with given terms. If there is no match then write "No match"
Serggg [28]

Answer:

1. No match.

2. Rebate.

3. No match.

4. No match.

5. Lease.

Explanation:

1. No match: This is the worth of the leased asset after the lease period expires.

  • The worth of the leased asset after the lease period expires is known as Residual value.

2. Rebate: This is a partial refund offered to attract the buyer to purchase the vehicle.

3. No match: This is the price of an asset being leased as specified in the lease agreement, which includes the negotiated cost of the vehicle and any applicable fees and taxes.

  • Capitalized cost refers to the price of an asset being leased as specified in the lease agreement, which includes the negotiated cost of the vehicle and any applicable fees and taxes.

4. No match: This is the advertised retail price listed on a particular vehicle for sale.

  • Sticker price is the advertised retail price listed on a particular vehicle for sale.

5. Lease: This is a contract which allows the lessee (consumer) to use the asset, such as car, land, services etc., in return for a specific amount paid periodically.

5 0
3 years ago
___competition is a competitive advantage based on factors other than price.
Degger [83]
The blank should have “nonprice competition” the answer is C.
5 0
3 years ago
Why is it important for managers to pay close attention to their organization’s production system if they wish to be responsive
Marina86 [1]

Explanation:

The production system consists of all integrated activities and operations for the production of goods and services.

Organizational capacity is measured by the set of effective actions of coordination and control of the production system. Therefore, active management of systems monitoring will determine key factors for better meeting consumer demands and needs through continuous improvement in the quality of manufacturing processes, innovations, reduction of waste and unnecessary spending, which enables greater transfer to the customer a product with quality and low cost and represents for the organization gains of competitive and strategic advantages.

8 0
3 years ago
Wizard Co. purchased two machines for $250,000 each on January 2, 2005.
Vikki [24]

Answer:

B. $275,000

Explanation:

The second machine will be depreciate over time as it can later be used for operational purposes or another research projects. The first, as can only be used for a  research project It should be considered expenses for the entire amount regardless of the useful life.

Machine B useful life 10 years

depreciation expense: cost / useful life

250,000 / 10 = 25,000

machine A 250,000 + 25,000 depreciation for machine B = 275,000 total

7 0
2 years ago
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