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
dimulka [17.4K]
3 years ago
15

An investment has an installed cost of $534,800. The cash flows over the four-year life of the investment are projected to be $2

14,850, $231,450, $198,110, and $146,820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV
Business
1 answer:
ale4655 [162]3 years ago
5 0

<u>Solution and Explanation:</u>

(a)-<u>NPV if the Discount Rate is Zero </u>

If the Discount Rate is Zero, the NPV of the Project is the sum of the Future cash flows deducted by Initial Investment

Net Present Value (NPV) =-\$ 534,800+\$ 214,850+\$ 231,450+\$ 198,110+\$ 146,820

= $256,430

If the Discount Rate is Zero, The NPV will be $256,430”

(b)-<u> NPV If the discount rate is infinite </u>

If the Discount Rate is Infinite, the NPV of the Project is the Initial Investment

NPV = -$534,800 (Negative)

You might be interested in
On January 1, Year 1, Frost Co. entered into a 2-year lease agreement with Ananz Co. to lease a new computer. The lease term beg
satela [25.4K]

Answer:

Frost (Lessee) and Ananz (Lessor)

The circumstance that would require Frost to classify and account for the arrangement as a finance lease is:

c. The economic life of the computers is three years.

Explanation:

a) Data:

Annual lease payments = $8,000

Present value of the minimum lease payments = $13,000

Fair value of the computer = $14,000

The economic life of the computers = 3 years

The lease period = 2 years

b) One of the conditions for classifying the lease arrangement as a finance lease is that the lease term of 2 years forms a significant part of the asset's useful life of 3 years.  Other conditions include:

Firstly, ownership of the asset is transferred to the lessee at the end of the lease term.  The second condition is that the lessee can purchase the asset below its fair value.

5 0
3 years ago
Charles Johnson has to make a deposit in his savings account. He has one $20 bill, two $5 dollar bills, seven $1 bills, six quar
ivolga24 [154]

Answer:

Total deposit is $39

Explanation:

Given

\$20\ bills = 1

\$5\ bills = 2

\$1\ bills = 7

Quarters = 6

Dimes = 5

Required

Determine the total

To do this, we simply multiply each dollar bill or coin with its frequency and add up the results.

i.e.

Total = 1 * \$20 + 2 * \$5 + 7 * \$1  + 6 * Quarters + 5 * Dimes

Total = \$37  + 6 * Quarters + 5 * Dimes

1\ quarter = \$0.25

1\ dime = \$0.1

So:

Total = \$37  + 6 * \$0.25+ 5 * \$0.1

Total = \$37  + \$2

Total = \$39

8 0
3 years ago
Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $44,000 to J.D. His
Serjik [45]

Answer:

-$8,600

Explanation:

Data provided in the question:

Distributions = $44,000

Basis = $42,000

Amount of ordinary income allocated = $10,600

Now,

Capital gain from distribution in excess of basis

= Distribution - Basis -  Amount of ordinary income allocated

= $44,000 - $42,000 - $10,600

= -$8,600

here, negative sign depicts there is a capital loss

8 0
3 years ago
Two years ago, you invested $3,000.00. Today, it is worth $3,750.00. What rate of interest did you earn?
enot [183]

The annual interest rate is 11.803%.

Assumptions:

- Interest is compounded annually.

4 0
3 years ago
A data model can __________: A. Illustrate return-on-investment, break-even point, and economic feasibility B. Represent actions
fredd [130]

Answer:

The correct answer is C

Explanation:

Data model is the model which is represented the data in a formal way and that could be used as well as created through the business system. This model organize the data elements and also standardize how they link or allocate to one another and to the properties of the entities.

This model states the logical inter- relationship and the flow of data among different elements of the data comprised in the information world.  And this model could be used for analysis in the logical data model and for design as a physical data model.

5 0
3 years ago
Other questions:
  • Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases. Regan can produce 3 times as man
    5·2 answers
  • Total revenue equals A)price per unit times change in quantity sold. b)price per unit times quantity supplied. c)change in price
    15·1 answer
  • Who is responsible for applying skills, knowledge, and project management tools and techniques to project activities to successf
    15·1 answer
  • Kaila, the owner of a costume shop, has a three-year strategic goal to serve 15 percent more customers and increase margins by 5
    11·1 answer
  • Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of Glacier Travel Ser
    15·1 answer
  • Please help me to solve this.
    6·1 answer
  • n preparing its cash flow statement for the year ended December 31, 2022, Reyes Co. gathered the following data: Gain on sale of
    8·1 answer
  • Is it good or bad to have lots of layers in a business<br> and why? What can be done?
    14·1 answer
  • On January 1, 2016, Hage Corporation granted incentive stock options to purchase 21,500 of its common shares at $10 each. The op
    12·1 answer
  • All _____________must become part of the federal reserve system.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!