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brilliants [131]
3 years ago
12

The Horizon Company will invest $84,000 in a temporary project that will generate the following cash inflows for the next three

years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 22,000
2 34,000
3 58,000

The firm will also be required to spend $10,000 to close down the project at the end of the three years.

Compute the net present value if the cost of capital is 8 percent.
Business
1 answer:
GarryVolchara [31]3 years ago
7 0

Answer:

The net present value is $3,624

Explanation:

Net present value is the sum of all cash inflows and outflows in present value terms. It is calculated by discounting each cash flow with given interest rate and for specified period of time.

Net present value of this project is $3,623.84

All the workings and calculations are made in an MS Excel File which is attached with this answer.

Download xlsx
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What’s the answer ?intro to business
kiruha [24]

Answer:

Here Hope has missed clicking the Header Row Options.

Explanation:

Here Hope has missed clicking the Header Row Options, that's why the row of Gas an Percentage has gone to the third number. He has chosen the Ascending Order Button, that's why all the data has been arranged in the alphabetically ascending order, which consequently has dislocate the Main heading of Gas and Percentage from the top.

It should be like as shown below (After clicking Header Row Option):

Gas                        Percentage

Argon                          0.93

Carbon Dioxide          0.04

Nitrogen                      78.00

Oxygen                       21.00

Other Gases               0.03

5 0
3 years ago
Uptown Men's Wear has accounts payable of $2,214, inventory of $7,950, cash of $1,263, fixed assets of $8,400, accounts receivab
Jlenok [28]

Answer:

The value of the net working capital to total assets ratio is 0.5067≅0.51

Explanation:

Given Data:

Accounts payable =$2,214

Inventory= $7,950

Cash=$1,263

Fixed Asset=$8,400

Accounts receivable=$3,907

Long-term debt=$4,200

Required:

The value of the net working capital to total assets ratio=?

Solution:

Net working Capital=Inventory+Cash+Accounts receivable-Accounts payable

Net working Capital= $7,950+$1,263+$3,907-$2,214

Net working Capital= $10,906.

Total assets=Inventory+Cash+Accounts receivable+ Fixed assets

Total assets= $7,950+$1,263+$3,907+$8,400

Total assets=$21,520

Ratio=\frac{Net\ working\ Capital}{Total\ assets}

Ratio=\frac{\$10,906}{\$21,520} \\Ratio=0.5067

The value of the net working capital to total assets ratio is 0.5067≅0.51.

6 0
3 years ago
Global Petroleum negotiated a deal with Saudi Arabia in which Global Petroleum would build several refineries in Saudi Arabia an
Lostsunrise [7]

Considering the situation described above, when Global Petroleum negotiated a deal with Saudi Arabia, this is an example of <u>Bartering</u>.

<h3>What is a Bartering?</h3>

Bartering is a transaction agreement whereby both parties agree to pay with goods or services without using money.

Therefore, in this situation, when Global Petroleum negotiated with Saudi Arabia to receive oil as partial payment over 20 years. This is an example of <u>Bartering</u>.

Hence, in this case, it is concluded that the correct answer is <u>Bartering</u>.

Learn more about <u>Bartering</u> here: brainly.com/question/1462751

7 0
3 years ago
You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.2 million Czech koruna today i
fredd [130]

Answer: The value of this exchange is $8,816.05.

Explanation:

The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that

k = koruna

b = baht

Step 1:

Sales Revenue = k2,200,000

(To get USD amount : \frac{2,200,000}{25.36}=$86,750.7886

Purchase Cost = b3,200,000

(To get USD amount : \frac{3,200,000}{41.06}=$77,934.7297

Step 2:

Profit = Sales Revenue - Purchase cost

         = $86,750.7886 - $77,934.7297

         = $8,816.0589

The value of this exchange is $8,816.05.

4 0
4 years ago
ExxonMobil reports total assets of $188 billion and total liabilities of $87 billion. Citigroup reports total liabilities of $1,
Alexus [3.1K]

Answer:

$101 billion

Explanation:

The computation of the amount of stockholders' equity of ExxonMobil is shown below:

As we know that

Total assets = Total liabilities + stockholder equity

where,

total assets is $188 billion

And, the total liabilities is $87 billion

So, the stockholder equity is

= $188 billion - $87 billion

= $101 billion

8 0
3 years ago
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