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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

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MakcuM [25]

Considering the available options, the statements that will likely lead to cost-push inflation include <u>"An increase in the price of oil has reduced supply of all goods and services that use oil as an input."</u>

The other options that will likely lead to cost-push inflation are "<u>Consumers become more comfortable with debt, increasing their spending as they take on more loans.</u><u>"</u>

<h3>What is Cost-Push inflation?</h3>

Cost-Push inflation is a type of inflation caused by the rise in the cost of wages and raw materials.

This implies that the rise in wages allows the consumers to spend more money on limited supply.

Also, when the rise in the cost of materials reduced the supply of all goods and services.

Hence, in this case, it is concluded that the correct answer is options A and E.

Learn more about Cost-Push inflation here: brainly.com/question/4540785

4 0
2 years ago
A company creates 40 units of a product using 30 hours of labor and 15 sheets of paper. Labor costs $10/ hour and paper costs $5
Scorpion4ik [409]

Answer:

0.038 units per $ of factor costs

Explanation:

Labor cost for 40 units  = 30 hours × $10/hour = $300

Cost of paper for 40 units = 15 sheets × $50/sheet = $750

Output = 40 units

Multi factor productivity is expressed as;

Multi factor productivity = Output/Total Factor cost

Multi factor productivity = 40 units/$1050 = 0.038 units per $ of factor cost

Multi factor productivity is a measure that depicts units produced for every $ of factor products used. In the above case 2 factors i.e labor and paper are used.

8 0
3 years ago
Assume that the real GDP in Year 2022 is $8000 and the GDP deflator is 200. Calculate the Nominal GDP. Show your work. *
zloy xaker [14]

Answer:

i dont k but I needed points

Explanation:

sorry

6 0
3 years ago
Part-time workers who want full-time work are counted as: A.) fully employed and therefore the official unemployment rate may ov
Vesnalui [34]

Answer: B

Explanation:

6 0
3 years ago
2.1: A debit is A : a decrease to an account. B : an entry on the left side of an account. C : an entry on the right side of an
Luba_88 [7]

Answer:

B : an entry on the left side of an account.

Explanation:

There are two terms i.e debit and credit.  

The accounts that reported as an expense, losses, assets are recorded in the left-hand side of an account as it contains the debit balance.

While the account reported as a revenue, gains, liabilities & stockholder equity are recorded in the right-hand side of an account as it contains the credit balance.

7 0
3 years ago
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