Answer:
b
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-38,000.
Cash flow in year 1 - 4 = $11,600
I = 12%
NPV = $(2,767).
To find the NPV using a financial calculator:
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
Answer:
I believe that the answer would be true
Explanation:
Answer:
The consumption and GDP will increase.
Explanation:
Consumption can be defined as the purchase of final goods and services with the motive to derive utility or satisfaction. Consumption expenditure is included in the GDP of an economy.
If an American student purchases a personal computer made by a company located in California, it will be recorded as consumption.
This will cause consumption to increase. Since consumption is included in GDP, the GDP will increase as well.
Answer:
d. If the manager invests in the additional project, residual income of the division will increase.
Explanation:
RI = Operating Income - (Operating Assets x Minimum Required Rate of Return)
with adding the additional project
Operating Income: $60000 +6000 =$66000
Operating Assets: $375000+$40000 =$415000
Residual income =$66000-14%*$415000 =$7900
Consider the attached information.
Answer:
$ 201
Explanation:
Thinking process:
The par value = $ 1 000
time = $ 10 years
rate = 8 %
= 0.08
The amount at a time T is given by the formula:
for $ 1 000, the amount will be:
The amount will be $ 1 006
for $ 8 00 it will be =
the amount will be $ 805
therefore, the net gain will be $ 1 006 - $ 805
= $ 201