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
BartSMP [9]
3 years ago
7

Random Co. purchased a machine for $400,000 that has a five year life and will produce annual net cash inflows of $110,000 per y

ear over the life of the machine. The present value of an annuity for 5 years at an 8% cost of capital is 3.993. Calculate the Net Present Value and Payback Period of this investment.
Business
1 answer:
inysia [295]3 years ago
5 0

Answer:

NPV = $39,230

Payback period = 3.64 years

Explanation:

The net present value (NPV) = (net annual cash flow x interest factor) - investment

NPV = ($110,000 x 3.993) - $400,000 = $439,230 - $400,000 = $39,230

The payback period = investment / net annual cash flow = $400,000 / $110,000 = 3.64 years or 3 years, 7 months and 19 days

You can also calculate the PV of each annual cash flow which will give you a more precise result, but the variation is minimal:

PV = ($110,000 / 1.08) + ($110,000 / 1.08²) + ($110,000 / 1.08³) + ($110,000 / 1.08⁴) + ($110,000 / 1.08⁵) = $439,198

and the NPV = $39,198

You might be interested in
Which type of store has high sales volume, little service, and prices 20-40 percent lower than supermarkets?
enot [183]
Gas stations. That would be that.
6 0
3 years ago
1) Which of these is a social goal of any economic system?
vichka [17]

<u>A social goal of any economic system:</u>

All economic systems' broad goals saw as key to the U.S. economy are soundness, security, economic freedom, equity, economic growth, efficiency, and full employment.

Accomplishing these objectives is troublesome in light of the fact that—despite the fact that the objectives supplement each other now and again—by and large, there are exchange offs to confront. To keep up a solid economy, the national government looks to achieve three approach objectives: stable costs, full business, and financial development.

Notwithstanding these three arrangement objectives, the central government has different destinations to keep up the sound financial strategy. Monetary objectives are not in every case commonly perfect; the expense of tending to a specific objective or set of objectives is having fewer assets to focus on the rest of the objectives.

7 0
3 years ago
What does a balanced lifestyle look like? choose a job you would like to have and describe how you could keep your life balanced
Stels [109]

Balance life is the ability to manage one's life effectively, given attention to all that is needed.

<h3>What is balance lifestyle?</h3>

Balanced lifestyle occurs when an individual is able to manage all aspect of life without affecting each other.

The individual is able to work effectively and still have a good time with his or her family.

An individual with a personal business can have a flexible schedule to accommodate all that matters to his lifestyle.

Therefore, Balance life is the ability to manage one's life effectively, given attention to all that is needed.

Learn more about balance life here,

brainly.com/question/17760650

#SPJ4

8 0
2 years ago
Two years ago, the de Castellane Manufacturing Company included its employees in a profit-sharing plan in which workers receive
lina2011 [118]

Answer:

The correct answer is operant conditioning.

Explanation:

Operative conditioning is a form of incentive, whereby a group of individuals are more likely to repeat forms of behavior that carry positive consequences and less likely to repeat those that carry negative consequences. In this case, by involving the company's employees in productivity gains, the positive behavior that leads to this happening is rewarded.

Have a nice day!

5 0
3 years ago
Without _____, no company can survive over the long run.
yuradex [85]
Hi there! Thanks for asking a question here on Brainly. 

<span>Without innovation, no company can survive over the long run. Innovations provide new ideas, methods, and advances to a company.

Answer: Letter D </span>✅ <span>

</span>Hope that helps! ★ If you have further questions about this question or need more help, feel free to comment below or post another question and send the link to me. -UnicornFudge aka Qamar
3 0
3 years ago
Other questions:
  • What would be the best answer
    5·1 answer
  • Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be
    11·1 answer
  • Grouper Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
    6·1 answer
  • Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a
    14·1 answer
  • Who is harmed the MOST during periods of unexpected inflation? A) 1 B) 1 and 3 C) 1, 2, and 3 D) 2 and 4
    15·2 answers
  • The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ¥100 = $1.00. What is the euro-yen cross rate
    10·1 answer
  • This refers to dividing responsibility among specific units or departments.
    14·1 answer
  • shhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeesssssssssssssssssssssssssssssssssssssssssssshhhhhh
    8·2 answers
  • the commercial banking system borrows from the federal reserve banks. as a result, the checkable deposits
    7·1 answer
  • If a client has critical complaints such as discrimination, unfair practices or false advertising, what should i do?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!