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
Artemon [7]
3 years ago
15

Dunay Corporation is considering investing $750,000 in a project. The life of the project would be 11 years. The project would r

equire additional working capital of $25,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $160,000. The salvage value of the assets used in the project would be $35,000. The company uses a discount rate of 18%. (Ignore income taxes.)Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.Required:Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Business
1 answer:
photoshop1234 [79]3 years ago
7 0

Answer:

The Net Present Value is - $20324

Explanation:    

We can use our financial calculator to work out the NPV using the cashflows from the different periods and using the discount rate given. Which is 18%.

We have 11 periods. Starting off with CF 0. ( CF = cashflow ) We will work in Thousands to make it easier to read and compute. $ ' 000

CF 0 Machine Investment (750) Working Capital Investment (25) Total=(775)

CF 1 160 inflow

CF 2 160 inflow

CF 3 160 inflow

CF 4 160 inflow

CF 5 160 inflow

CF 6 160 inflow

CF 7 160 inflow

CF 8 160 inflow

CF 9 160 inflow

CF 10 160 inflow

CF 11 160 inflow. 35 salvage value from machine. Working capital 25. Total Cashlow = 220

We now use our financial calculator and input these amounts into the calculator.

We start of by entering the data and hitting ENT and do so for every Cash flow. At the end we press 2nd function CFI on our calculator. We then enter the discount rate of 18%. and press down button to get to NPV and then press COMP.

We get an answer of -20,32400407

We now need to put the amount into thousands. Thus = -20324,004

rounded to the nearest dollar we get - $ 20324

You might be interested in
An agent wants to sell a highly valuable unregistered, nonexempt security to a customer. The agent has the client sign a waiver
xxTIMURxx [149]

Answer:

D) illegal because provisions of the Uniform Securities Act cannot be waived

Explanation:

According to the Uniform Securities Act, it refers to that act in which there is a uniform law or the same law that is to be followed state to state

Since in the question it is mentioned that the agent wants to sell a highly valuable i.e not registered also there is a client sign so it would be sold as per the act but this scenario represents the illegal act and also it could not be waived off.

6 0
3 years ago
Is Ann Wood a high-involvement manager? If so, provide evidence. If not, how well do you think she’ll perform in her new job as
Soloha48 [4]
Yes she is










Search it on google
5 0
3 years ago
Gross profit is equal to a. sales plus cost of goods sold b. sales less selling expenses c. sales less cost of goods sold d. sal
alexdok [17]

Answer:

sales less cost of goods sold

Explanation:

Gross profit is the profit earned after after deducting the costs of goods sold from revenue

I hope my answer helps you

8 0
3 years ago
how do i go about getting a job i have applied to multiple places so many times and i never get a call back
Aneli [31]

keep trying and call every once or twice a time in the week

3 0
3 years ago
Cassie is going to join a gym because new membership is very cheap. When she gets there, she discovers that there are added cost
siniylev [52]

Available options are:

a. Normative influence

b. Door-in-the-face

c. Foot-in-the-door

d. Lowballing

Answer:

Option D. Lowballing Strategy

Explanation:

Lowballing strategy is when an organization advertises its low cost product or service and doesn't advertises the hidden costs to attract customers. The customer when interacts the company the sales team most likely make sales due to their experience. Such type of marketing products is common in printers whose cost is kept low whereas the tuner price is kept high which helps them to earn profit.

8 0
3 years ago
Other questions:
  • Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES
    15·1 answer
  • Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Pensacola State Colle
    15·1 answer
  • You had your first child recently. You would like to set aside some funds so that your child will be able to attend the Universi
    8·1 answer
  • ABO purchased a truck at the beginning of 2018 for $140,000. They sold the truck at the end of 2019 for $95,000. If the expected
    7·1 answer
  • Inflating your expenses for a company-sponsored conference that discredits the profession is a violation of what ethical​ standa
    11·1 answer
  • The opportunity cost of a decision is measured in terms of
    11·1 answer
  • What do you think are the most important values and attitudes to have in order to suucessful in a job? why?
    10·1 answer
  • Assume a company sold a piece of equipment for $3,000. The original cost was $15,000 and the accumulated depreciation prior to t
    15·1 answer
  • Lin Co., a distributor of machinery, bought a machine from the manufacturer in November for $10,000. On December 30, Lin sold th
    14·1 answer
  • What is your favorite food?<br><br>do you love pets?<br><br>do you make good grades?
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!