Net Present Value is the difference between the present value of cash flows and the initial investment.
Net Present Value = Present Value of cash flows - Initial Investment
The following image shows the Net Present value of the cash flows:
Net Present Value = $122,142 - $120,000
Net Present Value = $2,142
Answer:
Assertion: When radius of a circular wire carrying current is doubled, its magnetic moment becomes four times.
Reason: Magnetic moment depends on area of the loop.
(a)A
(c) C (d) D
(b) B
Answer:
1. What was the product's operating income(loss) last year = $90,000 loss
2. What is the product's Break even point in unit sales and dollars
• Break even sales in units 18,000
• Break even i n sale dollars $1,260,000
3. Maximum annual profit given an increment of 5,000 units and reduction of sales price per unit by $2.
• Net profit of $20,000
4. What would be the break even point in unit sales and dollars using the selling price that you determined in requirement 3.
• Break even sales units 19,285.7
• Break even in sales dollars $1,311,427.6
Explanation:
Please see attached detailed solution to the above questions and answers.
Answer: $5,000
Explanation:
Per the requirements of qualified plans that permit loans, the maximum amount that an individual can withdraw is whichever is lesser between $50,000 and 50% of their Vested Account Balance.
Vance in this scenario has a vested account balance of $40,000.
50% of that would be $20,000.
That means that he can be loaned $20,000. However, he already has an outstanding loan balance that must be accounted for of 15,000.
Subtracting those figures we have,
= 20,000 - 15,000
= $5,000
The maximum loan that Vance can take from the qualified plan is $5,000
Answer:
Option B, IRR is 14.42%
Explanation:
The IRR is the rate of return that equates the cost of the project to the present value of cash flows receivable from the project in future.
Using an excel approach, the formula formula IRR is given as:
=irr(values)
The values in this case are
-$1300 in year 0
$450 in year 1
$450 in year two
$450 in year 3
$450 in year 4
The irr gives 14.42% as shown in the spreadsheet attached
The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return
