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Virty [35]
2 years ago
9

What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in Year 1, $6,9

80 in Year 3, and $2,750 in Year 4? The discount rate is 12.5 percent.
a) $249.65
b) $68.20
c) $86.87
d) $270.16
e) $371.02
Business
1 answer:
Oksana_A [137]2 years ago
5 0

Answer:

c) $86.87

Explanation:

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after implementation of discount factor - initial investment

The discount factor should be determined by

= 1 ÷ (1 + rate) ^ years

where,  

rate is 12.5%  

Year = 0,1,2,3,4

Discount Factor:

For Year 1 = 1 ÷ 1.125^1 = 0.8889

For Year 2 = 1 ÷ 1.125^2 = 0.7901

For Year 3 = 1 ÷ 1.125^3 = 0.7023

For Year 4 = 1 ÷ 1.125^4 = 0.6243

So, the calculation of a Present value of all yearly cash inflows are shown below

= Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4

= $1,280 × 0.8889 + $0 × 0.7901 + $6,980 × 0.7023 + $2,750 × 0.6243

= $1,137.778 + $0 + $4,902.277 + $1,716.811

= $7,756.87

Therefore, the Net present value equivalent to

= $7,756.87 - $7,670

= $86.87

We take the discount factor's first four digits.

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Toby and Keith are planning to create and jointly own a company that will license their patented technology solely for royalties
Fantom [35]

Answer: Limited liability company

Explanation:

In such a structure the owners and the firm are considered separate. The owners in a LLC could not be held personally liable for the debts and liabilities of their company.

The companies have the limited liability feature of the corporations while the profit distribution method depicts partnership structure.

In the given case, Toby and Keith wants to distribute profit among them and also do not want to raise any outside capital. Also they want limited liability in their organisation.

Hence a Limited liability company is an appropriate choice for them.

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3 years ago
If the Sampson Company, a supplier of wood, understands the needs and requirements for wood for a few firms within a NAICS class
Helen [10]

Answer:

The answer is "Option c".

Explanation:

The customer service must matter arising' needs to fulfill everyone. The Sampson Company, a timber manufacturer, understands the wood specifications or conditions for several firms within the NAICS category. Within this case, the Dunn Company will develop the timber specifications or criteria of all firms underclass.

5 0
2 years ago
What are the issues of integrity, ethics and law posed in the case study? What options does the woman have, and what should she
Dovator [93]

The integrity, ethics, and law issues raised in the case study are illegal and unethical conduct.

The woman must reject the economic proposal made by the company and maintain her complaint so that the executive is judged for what she did because she would avoid future harm to other employees.

<h3>What is ethics?  </h3>

Ethics is a term that refers to moral philosophy. This focuses on the study of human behavior based on right and wrong according to duty. Contemporary ethics is usually divided into three branches which are:

  • Metaethics studies the origin, nature, and meaning of ethical concepts.
  • Normative ethics seeks norms or standards to regulate human conduct.
  • Applied ethics examines specific ethical controversies.

According to the above, it can be inferred that the situation presented is an example of an unethical and illegal act because the company and the executive want to bribe the employee to prevent the executive from being removed from his position and the company from being judged for endorsing that conduct of the executive.

Note: The question is incomplete because the information is missing. Here is the complete information:

Case study 4

A woman is sexually harassed by a top-level senior executive in a large company. She sues the company, and during settlement discussions she is offered an extremely large monetary settlement. In the agreement, the woman is required to confirm that the executive did nothing wrong, and after the agreement is signed the woman is prohibited from discussing anything about the incident publicly. Before the date scheduled to sign the settlement agreement, the woman's lawyer mentions that she has heard the executive has done this before, and the settlement amount is very large because the company probably had a legal obligation to dismiss the executive previously. The company however wants to keep the executive because he is a big money maker for the company.

What are the issues of integrity, ethics and law posed in the case study? What options does the woman have, and what should she do and why?

Lecturer Guidelines

Some of the issues raised by this case study include initial issues of unethical and unlawful conduct, by the executive and the company; whether the company should allow the executive to continue working because of the revenue he generates, in view of his propensity to harm co-workers, and whether this action is ethical or reflects integrity; whether the company should require the woman to state that the executive did nothing wrong as part of the settlement agreement; whether the woman should agree to this settlement in view of the harm future employees are being exposed to; and whether the woman is prioritising justice for herself over harm to future employees in an acceptable way.

Learn more about ethics in: brainly.com/question/2630782

3 0
2 years ago
The abrupt end of long distance cattle drives in 1885 was primarily due toa. the development of railroad cars that could haul ca
vladimir1956 [14]

Answer:

a. the development of railroad cars that could haul cattle.

Explanation:

The abrupt end of long distance cattle drives in 1885 was primarily due to the development of railroad cars that could haul cattle.

It was the advent of expanding rail road lines that terminated the cattle drive through Kansas because the end points of the cattle trail shifted to meet expanding railroad lines.

It was logical that as the railroads expanded to meet the cattle drive, one had to give way to the other because cattle do stray and trains could haul cattle

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prisoha [69]

Answer:

4. Available investments

Explanation:

To enable me estimate my available investments, I need my bank statements, credit statements and record of cash expenses

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