To complete the above question, please see below:
Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)
<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
Answer:
1350
Explanation:
(300 x 0.70) + (300 x 0.80) + (300 x 26)
= 210+240+7800
=8250
8250- (300 x 23)
8250-6900 = $1350
Therefore his total return for this investment is 1350
Answer:
The market structure that Keith's company uses is monopolistic competition.
Explanation:
In monopolistic competition, there are many firms in the market, the price is mostly determined by market forces, and as a result, the companies try to sell products that are different in some way.
In this case, Keith's company competitors are trying to use a pricing strategy to increase their market share. They are trying to compensate loss of revenue from the lower prices, with a higher sales volume.
Answer:
Which element can be used as a hook in an essay?
The element that is used as a hook in an essay is called main idea
Explanation:
Main idea is used as an hook in writing essay because it gives the reader an idea of the message being passed by the writer.
Answer: c. Ten years, because maintenance costs don't increase.
Explanation:
With the maintenance costs constant at $24,000 a year, the machine is still expected to go 10 years before it's x-ray source is depleted and it has to be scrapped.
This means that the useful life is therefore 10 years because the maintenance cost will not increase but will still keep the machine going for 10 years.
