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djyliett [7]
3 years ago
9

Net cash flows $ 63,000 $ 46,000 $ 83,000 $ 159,000 $ 41,000 $ 392,000 a. Compute the net present value of this investment. b. S

hould Beyer accept the investment?
Business
1 answer:
san4es73 [151]3 years ago
3 0

Answer:

a. $36,310.55

b. Yes

Explanation:

a. The computation of the net present value is shown below:-

Year        Net Cash Flow      PV at 12%            PV of Net Cash Flows

1                $63,000                  0.893               $56,259

2               $46,000                  0.797                $36,662

3                $83,000                  0.712                $59,096

4                $159,000                 0.636              $101,124

5               $41,000                   0.567               $23,247

Total                                                                  $276,310.55  (B)

Invested Amount                                              $240,000  (A)

Net Present Value                                            $36,310.55  (B - A)

b. Since the net present value comes in positive so Beyer should accept this investment

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enyata [817]

Answer: Public assistance programs

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7 0
3 years ago
When Tim earned​ $65,000 he purchased 10 novels a year. His income has just increased to​ $68,000 and he plans to purchase 15 no
trasher [3.6K]

Answer:

8.88

Explanation:

Data provided in the question:

Initial income, I₁ = $65,000

Initial novel purchased, D₁ = 10

Final income, I₂ = $68,000

Final novel purchased, D₂ = 15

Now,

Tim's income elasticity of demand for novels will be

= \frac{(\frac{D_2-D_1}{D_1+D_2})}{(\frac{I_2-I_1}{I_1+I_2})}

on substituting the respective values, we get

= \frac{(\frac{15-10}{10+15})}{(\frac{68,000-65,000}{65,000+68,000})}

= [5 ÷ 25] ÷ [3,000 ÷ 133,000 ]

= 0.2 ÷ 0.0225

= 8.88

5 0
4 years ago
Baldwin Company had 40,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000 sh
Sindrei [870]

Answer:

$56,667

Explanation:

Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.

The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.

To calculate the Diluted Earnings per share,

40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.

7 0
4 years ago
The hernandez family budgets $420 a month for food. last month they spent $413, which creates a?
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A budget surplus of $7

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A budget deficit is the polar opposite of a budget surplus. If a company (or government) has a budget deficit, it signifies that over the given timeframe, it spent more money than it brought in. A business's budget deficit could necessitate a budget reform for the upcoming fiscal year, even though a budget deficit for the government is not always negative for spending.

<h3>What does the term "surplus" mean?</h3>

A surplus is a sign that the government is being run efficiently. When government income is higher than government expenditures for a specific time period, typically a fiscal year, there is a surplus, which is a positive number.

<h3>How is inflation caused by a budget surplus?</h3>

Nevertheless, inflationary pressures can also exist when the economy is struggling. In essence, a rise in the money supply is what causes inflation. In light of the foregoing, a budget surplus will drain funds from the economy, hence lowering the money supply and fostering a deflationary environment.

Learn more about budget surplus:

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6 0
2 years ago
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MA_775_DIABLO [31]

Answer:

b) Tim should be in Governance and Suzette should be in Planning.

Explanation:

Sorry this is a bit late

6 0
3 years ago
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