Answer:
$270,000
Explanation:
The computation of the initial outlay of the project is shown below:
The initial outlay of this project = Purchase Price of the Asset + Installation Costs + Shipping cost + Investment in Working Capital
= $200,000 + $15,000 + $5,000 + $50,000
= $270,000
We simply added the purchased price, installation charges, shipping cost and the investment in working capital so that the initial outlay could come
Answer: 39%
Explanation:
From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.
To calculate its profit margin, we have to divide the net income by the net sales. This will be:
= 7605/19500
= 0.39
= 39%
Answer:
Total PV= $26,176.63
Explanation:
Giving the following information:
Cash flow:
Cf1= $5,700
Cf2= $10,700
Cf3= $16,900
<u>To calculate the price of the investment now, we need to use the following formula on each cash flow:</u>
PV= Cf / (1+i)^n
PV1= 5,700/1.11= 5,135.14
PV2= 10,700/1.11^2= 8,684.36
PV3= 16,900/1.11^3= 12,357.13
Total PV= $26,176.63