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givi [52]
3 years ago
13

The project involves an initial investment of $100,000 in equipment that falls in the 3-year MACRS class and has an estimated sa

lvage value of $15,000. In addition, the company expects an initial increase in net operating working capital of $5,000 which will be recovered in year 4. The cost of capital for the project is 12 percent. What is the project’s net present value
Business
1 answer:
nlexa [21]3 years ago
3 0

Answer:

NPV -87,259.64

Explanation:

P0   -100,000

Salvage Value 15,000

operating working capital realese 5,000

We will calculate the present value of the salvage value and the working capital realese

\frac{Principal}{(1 + rate)^{time} } = PV

\frac{5,000}{(1 + 0.12)^{4} } = PV

3,177.59

\frac{15,000}{(1 + 0.12)^{4} } = PV

9,532.77

NPV = investment - cash flow discounted

NPV = -100,000 + 9,532.77 + 3,177.59 = -87,259.64

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Answer:

Problem Recognition.

Information Search.

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Explanation:

1. Problem Recognition: This relates to the existence and realization of the  <u>need gap</u> between what they have and what they want.

2. Information Search: This is the next stage where the consumer begins to search for how to close the need gap.

3. Evaluation of Alternatives: After searching for  available information on potential way(s) to meet the existing need, the product of the search could reveal numerous alternatives from which a choice will be made after thorough evaluation

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Post-Purchase Evaluation: After a purchase decision, it is imperative that the customer gives feedback on whether or not they are satisfied with the decision that was made or not, to buy the product.

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3 years ago
Green Grocer and Futurity Farms enter into an agreement whereby Futurity will supply Green Grocer with 200 dozen eggs every two
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Answer: a, provides 30 days' notice to futurist of its desire to terminate.

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Madison Company issued an interest-bearing note payable with a face amount of $30,600 and a stated interest rate of 8% to the Me
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Answer:

a. $0

b.  $31,620

Explanation:

a. Notes Payable do not fall under Operating activities in the cashflow statement but rather under Financing Activities which is where cash transactions that provide the business with capital and liability funds are accounted for.

The Operating activity balance from this is therefore $0.

b. The liabilities will include the Note and the interest accumulated at year end.

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Answer:

B. targeting strategy and marketing mix

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In business, Targeting strategy refers to a strategy that a company implemented to sell their product to specific group of consumers.

In pepsi's case, they focus their targeting strategy toward the consumers who want a refreshing drink.

Marketing mix is a marketing strategy that is revolved around  product, price, place, and promotion. Companies could utilzie this 4 factors to create a business model that can make their targeting strategy succesful.

In pepsi's case:

They sold their product in almost every convenience store <u>(place) .</u> Making it easier for consumers who currently crave refreshing drinks. The <u>price </u>of Pepsi's product is very affordable.

<u>They designed and promote their produc</u>t to obtain a reputation as refreshing  a product that can relinquish your thirst.  You can see it in most of their advertising. Most of it consist of people in a hot weather that craves something cold and refreshing.

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