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IRINA_888 [86]
3 years ago
6

A company is considering the purchase of new equipment for $69,000. The projected annual net cash flows are $27,800. The machine

has a useful life of 3 years and no salvage value. Management of the company requires a 9% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 9% 1 0.9174 2 1.7591 3 2.5313 What is the net present value of this machine assuming all cash flows occur at year-end?
Business
1 answer:
Arisa [49]3 years ago
7 0

Answer:

The correct answer is $1,370

Explanation:

The computation of net present value is shown below:-

For computing the net present value first we need to find out the present value of inflow

Present Value of Inflow of 3 Years at 9% = Net cash flow × Number of years

= $27,800 × 2.5313

= $70,370

Net Present Value = Present value of inflow - Initial Outflow

= $70,370 - $69,000

= $1,370

Therefore for computing the net present value we simply deduct the initial outflow from present value of inflow.

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bagirrra123 [75]

Answer:

The correct answer is letter "C": Environmental scanning.

Explanation:

Environmental scanning refers to an analysis carried out by companies in an immediate and external atmosphere that will allow them to detect threats to counteract or mitigate them and opportunities from which the company can make a profit. Organizations engaged in environmental scanning are constantly reviewing different means of communication and conducting research that will keep them updated on market fluctuations.

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A ________ is any formula, pattern, physical device, idea, process, or other information that provides the owner of the informat
yawa3891 [41]

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8 0
4 years ago
during the trial of a suit concerning liability for an accident involving cartage ltd. and docking inc., the plaintiff’s attorne
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5 0
1 year ago
How much money should be deposited annually in a bank account for five years if you wish to withdraw ​$3 comma 000 each year for
VMariaS [17]

Answer:

The five deposits will be for   $ 1,263.360

Explanation:

at the given rate of 4%

we are going to do 5 deposits.

Then, after 5 years we subtract 3,000 dollar during 3 years:

First, we solve for the PV of tat annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 3,000.00

time 3

rate         0.04

3000 \times \frac{1-(1+0.04)^{-3} }{0.04} = PV\\

PV $8,325.2731

Then, we discount for the 5 years waiting period:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $8,325.2731

time  5.00

rate  0.04000

\frac{8325.27309968139}{(1 + 0.04)^{5} } = PV  

PV   6,842.7676

Now, we solve for which annuity of 5 deposits generates that amount:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\

FV 6,843

time 5

rate    0.04

6842.76763180258 \div \frac{(1+0.04)^{5} -1 }{0.04} = C\\

C  $ 1,263.360

5 0
4 years ago
Studies indicate that married men on average earn more income than unmarried men of the same age and education level. Why must w
icang [17]

Answer:

all of the answers provided are correct

Explanation:

The causation fallacy refers to when a cause is incorrectly identified for a specific effect in a research study. That being said, all of the answers provided are correct. There is no clear indication or proof in this study that shows that "marriage" is the sole factor that causes the difference in pay between the men in question. There can be many other factors in play such as social connections, economic backgrounds, geographic locations, field of work, etc.

7 0
3 years ago
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