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Naddik [55]
4 years ago
9

$400,000 capital investment proposal has an estimated life of 4 years and no residual value. The estimated net cash flows are as

follows: Year Net Cash Flow 1 $200,000 2 150,000 3 90,000 4 80,000​ The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively.​ Determine the net present value.
Business
1 answer:
Brilliant_brown [7]4 years ago
6 0

Answer:

Net present value =  $13,110

Explanation:  

The computation of the net present value is shown below:

Years           Cash flows            Present value factor           Present value

0                 -$400,000                  1                                       -$400,000 (A)

1                   $200,000                0.893                                 $178,600                

2                 $150,000                 0.797                                  $119,550

3                 $90,000                   0.712                                   $64,080

4                 $80,000                   0.636                                  $50,880

Net present value                                                                    $13,110 (B - A)

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Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.
zavuch27 [327]

A shift in the sales mix could result in both a higher break-even point and a lower net income.

The relative proportions in which a company's products are sold are referred to as the sales mix.

If the sales mix shifted from high contribution margin products to low contribution margin products, the break-even point would rise and net operating income would fall.

Such a shift would cause the company's average CM ratio to fall, resulting in less total contribution margin for a given amount of sales.

As a result, net operating income would fall.

The break-even point would be higher with a lower contribution margin ratio because more sales would be required to cover the same amount of fixed costs.

Hence, a shift in the sales mix could result in both a higher break-even point and a lower net income.

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2 years ago
All parties need to communicate about strategy and schedule. which communication channel is most likely to meet their needs? mul
Nina [5.8K]
The most suitable strategy for all parties to communicate is by using a videoconference in which allows all of the people to have a meeting and to be able to see each of the people involved in a meeting. Using a conference call may also be useful but the lacking of it is that you may not be able to see the people you're talking to. Other choices aren't suitable as this will not allow you to talk to everyone all in the same time.
3 0
3 years ago
Do you think that higher pay caused higher productivity and lower turnover for Aetna?
antiseptic1488 [7]

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7 0
3 years ago
Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,900 6,600 6
Nana76 [90]

Answer:

Units to be produced          6,075

Explanation:

July production budget

sales for the period           5,900

desired ending inventory

25% of next month

25% of August

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The slope of the budget line is: negative, since to purchase more of one good means giving up some of the other good. zero, sinc
34kurt

Answer:

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