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juin [17]
3 years ago
15

What would be the net present value of a microwave oven that costs $167 and will save you $76 a year in time and food away from

home? Assume an average return on your savings of 5 percent for 5 years. (Hint: Calculate the present value of the annual savings, then subtract the cost of the microwave.) Use Exhibit 1-D. (Round PVA factor to 3 decimal places and final answer to 2 decimal places.)
Business
1 answer:
Luda [366]3 years ago
4 0

Answer:

NPV of the microwave: 162.04

Explanation:

we will calcualte the present value of the microwave cost savings of 76 dollars per year using the annuity formula:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 76 dollars

time  5 years

rate   0.05

76 \times \frac{1-(1+0.05)^{-5} }{0.05} = PV\\

PV $329.0402

The net present value will be the present value less investment

329.04 - 167 = 162.04

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Bristo Corporation has sales of 1,000 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expe
Misha Larkins [42]

Answer:

3.60

Explanation:

Given that,

Sales units = 1,000

Sales price per unit = $60

Variable expenses = 40% of the selling price

Total Fixed cost = $26,000

Contribution margin per unit:

= Selling price - Variable cost

= $60 - ($60 × 40%)

= $60 - $24

= $36

Total contribution:

= Contribution margin per unit × Sales units

= $36 × 1,000

= $36,000

Profit = Total contribution - Fixed cost

         = $36,000 - $26,000

         = $10,000

Degree of operating leverage:

= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)

= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)

= 36,000 ÷ 10,000

= 3.60  

8 0
3 years ago
Complete the following sentence.
tiny-mole [99]

Answer:

Auditor

Explanation:

If an interviewer has suspicions of fraud, the interviewer may call on a fraud AUDITOR to assess the situation.

This is because a FRAUD AUDITOR is a type of auditor who based on his experience and background, works as a professional in the gathering of verifiable evidence in terms of fraud and eventually serves as an expert witness during the legal proceeding of such cases.

8 0
3 years ago
Suppose Piranha sells 3,500 books on account for $17 each (cost of these books is $35,700) on October 10, 2018 to The Textbook S
Natali5045456 [20]

Answer:

1. 10 Oct 2018     Inventory        $59500 Dr

                                Accounts Payable      $59500 Cr

2. 13 Oct 2018    Accounts Payable   $1700 Dr

                                Inventory                     $1700 Cr

Explanation:

1. The Textbook store is purchasing the books at $17 per book and in total 3500 books are purchased on credit. So, we debit the inventory account by 59500 (3500 * 17) and credit the Accounts Payable by 59500.

2. This transaction relates to Purchases return which in this case is our inventory of books. Textbook store will record this transaction in its books by debiting the Accounts Payable account by the value of the books returned 1700 (170* 100) and credit its inventory by 1700. The last line pertains to total estimation of sales returns by Piranha so we do not need to consider that while preparing transactions in Textbook store's books.

5 0
3 years ago
Suppose you invest today and receive in five years. a. What is the internal rate of return​ (IRR) of this​ opportunity? b. Suppo
denpristay [2]

Answer:

the numbers are missing, so I looked for a similar question:

  • investment today = $3,000
  • receive $10,250 in 5 years

a) I will use the future value formula to determine the internal rate of return:

future value = present value x (1 + r)ⁿ

  • future value = 10,250
  • present value = 3,000
  • n = 5

10,250 = 3,000 x (1 + r)⁵

(1 + r)⁵ = 10,250 / 3,000 = 3.4166667

⁵√(1 + r)⁵ = ⁵√3.4166667

1 + r = 1.27855826

r = 0.27855826 = 27.86%

b) assuming a $3,000, 27.86%, 5 year annuity, the annual payment will be:

annual payment = principal / FV annuity factor, 27.86%, 5 periods

  • principal = $10,250
  • PV annuity factor, 27.86%, 5 periods = 8.67633

annual payment = $10,250 / 8.67633 = $1,181.38

8 0
4 years ago
In the early days of television, the production and content of most television programs was the responsibility of Group of answe
Natasha_Volkova [10]

In the early days of television, the production and content of most television programs was the responsibility of the <u>(C) corporations that sponsored the shows.</u>

<u />

Explanation:

Advertising is a marketing strategy that  involves  paying for space to promote a product, service, or a social  cause.

The actual promotional messages are called advertisements, or ads (In short).

The goal of advertising is to reach the general  masses most likely who are willing to pay for a company's products or services and it encourages  them to buy.

The first television advertisement was that of a Bulova Watch which was board caste on 1 July 1941.This was the first advertisement not only in US but also in the world

4 0
4 years ago
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