1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IRISSAK [1]
3 years ago
5

Pls help with this!!!!

Mathematics
1 answer:
motikmotik3 years ago
6 0

Answer:

Step-by-step explanation:

You might be interested in
A company is planning a four-year project, with an initial cost of $1.67 million. This investment cost is amortised to zero over
yaroslaw [1]

Answer:

The Net Present Value =  $451180.733

Step-by-step explanation:

Given that:

the initial cost of the project is $1670000

the initial increase in working capital is $198000

The total investment will be ; initial cost of the project + initial increase in working capital

The total investment = $1670000 + $198000

The total investment = $1868000

So, This investment cost is amortised to zero over four years; This implies that the project will depreciate in four years;

Now; lets determine the rate of the annual depreciation

The annual depreciation = \dfrac{Initial \ cost \  of \  project }{life \ of \ project}

The annual depreciation = \dfrac{1670000}{4}

The annual depreciation = $417500

Over to the annual operating cash flow; the annual operating cash flow can be calculated as follows:

annual operating cash flow = (sales - cost) × (1 - tax rate )+ (annual depreciation × tax rate )

Given that the tax rate = 21% = 0.21

annual operating cash flow = (1850000 -1038000)×(1-0.21)+(417500× 0.21)

annual operating cash flow = 812000 × 0.79 + 87675

annual operating cash flow = 641480 +  87675

annual operating cash flow = $729155

So; let's calculate the after tax salvage value for the project

We know that the sales values for the project in four years is $435,000 (i.e the disposal rate of the asset after four years)

Thus; the book value is zero

The after tax salvage value for the project can now be determined by the relation:

after tax salvage value = sale value - tax (sale value - book value)

after tax salvage value =  435000  - 0.21 (435,000 -0)

after tax salvage value = 435000 - 91350

after tax salvage value = $343650

Similarly; given that the recovering rate of the project is $198000;

The cash flow in year 4 will be: annual operating cash flow + after tax salvage + recovery working capital

cash flow in year 4 = $(729155 + 343650 + 198000)

cash flow in year 4 = $ 1270805

This implies that the cash flow from year one to three is : 729155

the cash flow in year four is : 1270805

Given that the Required return rate = 16.4% = 0.164

We can therefore determine the Present cash inflows by using the relation:

Present \ Value = \dfrac{c_1}{(1+r)^1}+ \dfrac{c_2}{(1+r)^2}+ \dfrac{c_3}{(1+r)^3}+ \dfrac{c_4}{(1+r)^4}

Present \ Value = \dfrac{729155}{(1+0.164)^1}+ \dfrac{729155}{(1+0.164)^2}+ \dfrac{729155}{(1+0.164)^3}+ \dfrac{1270805}{(1+0.164)^4}

Present \ Value = \dfrac{729155}{1.164^1}+ \dfrac{729155}{1.164^2}+ \dfrac{729155}{1.164^3}+ \dfrac{1270805}{1.164^4}

Present Value = $(626421.8213 + 538163.0767 + 462339.413+692256.4225)

Present Value = $2319180.733

Finally, The net present value = Present Value - Total Investment

Net Present Value = $(2319180.733 - 1868000)

Net Present Value =  $451180.733

Therefore; The Net Present Value =  $451180.733

5 0
3 years ago
Heyy pls help with these math questions hurry!
horrorfan [7]

Answer:

m=2/5, y=3x7, (7,0), y=x-2, (0,-2)

Step-by-step explanation:

7 0
3 years ago
Find the size of angle BAC. Give your answer to 3 significant figures
Alex777 [14]

Answer:

50.5

Step-by-step explanation:

6 0
3 years ago
Keshon gets a loan for $4,000 to buy a car. It will take him 3 years to pay off the loan He will be charged 6.5% simple interest
Hitman42 [59]

We can use the interest formula:

Let i = interest.

Let p = principal

Let r = interest rate

Let t = time.

I = p × r × t. Plug in our numbers

6.5% = 0.065

I = $4,000 × 0.065 × 3 = $780.

He will pay $780 in interest after 3 years.

6 0
3 years ago
Read 2 more answers
A line passes through the points (2,13) and (9,20). Write a linear function rule in terms of x and y for this line. The linear f
iren [92.7K]

Answer:

y= (9,13)

Step-by-step explanation:

i think im really sorry if im wrong

3 0
3 years ago
Other questions:
  • I'm over this please
    5·2 answers
  • The formula for the volume of a cylinder is three
    14·1 answer
  • HELP PLEASE!
    8·2 answers
  • Two taps A and B can fill a cistern in 20 and 30 minif both are opend simultaneously how long will it take to fill the cistern
    11·2 answers
  • PLEASE ANY REAL PERSON WHO CAN HELP ME IVE BEEN WAITING LIKE 30 MINUTES
    13·1 answer
  • If f(x)=x^2+2x+1<br> Find f^1 (x)
    8·1 answer
  • Wendy Wilson planned to bake a triple recipe of chocolate chip cookies for her office party. If the recipe calls for 2 3/4 cups
    5·1 answer
  • MODELS. a model ship is built to a scale of 1 centimeter. 5 meters. The legthn of the model is 30 centimeters what is the actual
    5·1 answer
  • .104 into a fraction<br>.75 into a fraction​
    12·1 answer
  • (x-1)^3-x^2(x+3)=2<br><br> Find x<br> send help
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!