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
SVEN [57.7K]
4 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]4 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  

You might be interested in
Which result is a positive aspect of globalization
xxTIMURxx [149]
More efficent markets
8 0
4 years ago
Read 2 more answers
A firm currently sells $1,500,000 annually of an expensive product line. That firm is considering a similar, less expensive, dis
Vesna [10]

Answer:

$120,000

Explanation:

Calculation to determine the incremental revenue associated with the discount product line

First step is to calculate the lost revenue due to erosion

Lost revenue due to erosion=$1,500,000-$1,320,000

Lost revenue due to erosion=$180,000

Now let calculate the Incremental revenue

Using this formula

Incremental revenue=Discount line revenue -Lost revenue due to erosion

Let plug in the formula

Incremental revenue=$300,000-$180,000

Incremental revenue = $120,000

Therefore the incremental revenue associated with the discount product line is $120,000

3 0
3 years ago
Andrews and Bates have a written contract in which Bates promises to sell Andrews a piece of real estate. Bates refuses to compl
Nikolay [14]

Answer:

Equitable relief

Explanation:

Equitable relief is defined as a remedy provided by a court that requires a party to act or prevents a person from acting.

It is usually granted in relation to contracts that have been breached.

When equitable relief is sought there is no monetary compensation, rather the plaintiff is requesting the court to ensure an action is performed.

In this instance Andrews and Bates have a written contract in which Bates promises to sell Andrews a piece of real estate. When Bates refuses to fulfill his obligation Andrews can seek for equitable relief from the court.

Forcing Bates to sell the piece of real estate as agreed in the contract.

7 0
4 years ago
Who is responsible for compiling the risk management statement?
motikmotik
The Project Manager is responsible for compiling the risk management statement

7 0
3 years ago
What do you think would make women's contributions to entrepreneurship more visible and less surprising to people?
ohaa [14]

Answer: They must continue with their work, which goes beyond being housewives.

Explanation: Today women have achieved a lot to be seen as beings who have the ability to undertake large-scale projects. Women should continue working, positioning themselves in direct positions, undertaking, and above all, supporting each other. Women must continue to demonstrate that they too are capable of occupying positions that have been seen only for men. Today we have women presidents of nations, CEOs and giving more contributions to society.

3 0
3 years ago
Read 2 more answers
Other questions:
  • In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at
    12·1 answer
  • In the five forces model, the __________ that companies compete against one another for customers, the _________ the level of pr
    15·1 answer
  • The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin
    10·1 answer
  • ​Lori's Company has the following​ items: cash in a checking​ account, $ 6 comma 000​; cash in a savings​ account, $ 1 comma 000
    14·1 answer
  • [The following information applies to the questions displayed below.] Pacific Ink had beginning work-in-process inventory of $74
    12·1 answer
  • Erica decides to spend $50 on a ticket to a concert with friends instead of buying a new pair of jeans. What is the opportunity
    10·2 answers
  • ________ have over 85% of the l,669 federally designated mental health professional shortage areas.
    14·1 answer
  • Starbucks coffee corporate structure involves three regional divisions: the americas, china and asia-pacific, and europe, middle
    5·1 answer
  • Suppose that the u.s. government doubles its spending on health care. the _____ curve shifts _____, output _____, and prices ___
    6·1 answer
  • identify four service industries that, according to your textbook, are expected to have the greatest employment potential?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!