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SVEN [57.7K]
3 years ago
10

Turn to Part C of the Systems Analyst’s Toolkit and review the concept of net present value (NPV). Determine the NPV for the fol

lowing: An information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When the system goes online, the company will save $30,000 during the first year of operation. For the next four years, the savings will be $20,000 per year. Assuming a 12% discount rate, what is the NPV of the system?
Business
1 answer:
Tcecarenko [31]3 years ago
5 0

Answer:

$-13,975.91

Explanation:

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

NPV can be calculated using a financial calculator  

Cash flow in year 0 =  $-95,000

Cash flow in year 1 =  $30,000

Cash flow each year from 2 to 5 =  $20,000

I = 12%

NPV = $-13,975.91

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  

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According to the Capital Asset Pricing Model (CAPM), correctly priced securities:
miskamm [114]

Answer:

A) have zero alphas

Explanation:

Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.

This is why the CAPM model only considers beta in its calculation.

5 0
3 years ago
Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D D
vredina [299]

Answer:

minutes of grinding= 60,468 minutes

Explanation:

Giving the following information:

Grinding minutes per unit:  

Product A= 3.80

Product B= 5.30

Product C= 4.30

Product D= 3.40

Monthly demand in units:    

Product A= 4,260

Product B= 4,260

Product C= 3,260

Product D= 2,260

A total of 54,900 minutes is available per month on these machines.

minutes of grinding= Total product A + Total product B + Total product C + Total product D

minutes of grinding=4260*3.80 + 4260*5.3 + 3260*4.3 + 2260*3.4= 60,468 minutes

8 0
3 years ago
Wassamatta University is considering resigning its minimum qualifications for professors from possessing a master's degree to po
bulgar [2K]

Answer:

c. shift the supply curve of professors to the left ceteris paribus

Explanation:

Labour Supply curve shows the labour hours,  employees or workers are willing & able to supply, at given wage rates during a period of time.

The curve is upward sloping due to positive relationship between wage rates & labour. As more labour is supplied at higher wage rate, less labour is supplied at lower wage rates.

Change in any other factor other than wages, changes (shifts) the supply curve. Factor increasing labour supply shifts the supply curve rightwards. Factor decreasing labour supply shifts the supply curve leftwards.

The case given : as increase in the minimum qualifying eligibility for the job, decreases the number of people who are 'able' to supply labour as per the criteria. So, it decreases labour supply & shifts the curve leftwards.

8 0
3 years ago
The American Opportunity tax credit:_____. A. is 50% of the first $1,200 of tuition and fees paid and 100% of the next $1,200. B
mamaluj [8]

Answer:

C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents

Explanation:

American Opportunity tax credit was called the HOPE credit. It is available for the first four years of an individual's post secondary school education.

It covers 100% of the first $2,000 cost for tuition, fees, books, and course material.

Items that do not qualify are room and board, transportation cost and personal expenses.

The tax credit is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.

6 0
3 years ago
The managers at Harris Pizza in Boston have tracked the tips received by their drivers along with the total bill to the customer
Marina86 [1]

Answer:

Scatter Diagram.

Explanation:

Scatter Diagrams are convenient mathematical tools to study the correlation between two random variables. As the name suggests, they are a form of a sheet of paper upon which the data points corresponding to the variables of interest, are scattered.

3 0
3 years ago
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