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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)

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A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if inves
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Answer:

. $11.98

Explanation:

D1 = D0(1+g)

D0 = Last dividend

r = Required rate of retrun

g = Growth rate

Stock price formula = D1/(r-g)

Stock price = D0(1+g)/(r-g)

Stock price = 1*(1+0.054) / (0.142-0.054)

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Stock price = 11.97727273

Stock price = $11.98

4 0
3 years ago
Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $
nikitadnepr [17]

Answer: Sell before assembly, the company will be better off by $1 per unit.

Explanation:

To solve the above question, we need to calculate the incremental profit or loss first. This will be:

= After assembling sales value - Unassembled unit sales value - Coat if further processing

= $87 - $62 - $26

= -$1

Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".

7 0
3 years ago
Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the pro
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Answer:

correct option is A. ​$331,000

Explanation:

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Direct materials =  ​$86,000

Direct labor ​= 130,000

Variable factory overhead = ​57,000

Fixed factory overhead ​= 135,000

Total costs = ​$408,000

avoidable =  $58,000

to find out

highest price that McMurphy should be willing to pay for​ 12,000 units of the part is

solution

we get here highest price that McMurphy should be willing to pay for​ 12,000 units of the part that is express as

highest price  = Direct material + Direct Labor + variable factory overhead + avoidable fixed overhead   .....................1

put here value we get

highest price  = $86000 + $130000 + $57000 + $58000

highest price  = $331,000

so correct option is A. ​$331,000

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3 years ago
Gina is working as a marketing trainee for a streaming video company. Her boss called a meeting for next week with one thing on
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Answer:

C) Create a customer-driven environment where we constantly try to create customer value.

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A competitive advantage basically refers to offering a better service at the same price as your competition, or offering the same service as your competition but at a lower price. In this case, Gina's idea focuses on offering a differentiated and better service than the competition, and hopefully be able to sell it at the same price.

In order to create a customer driven environment, the company must identify its customers's needs and it must do everything it can to satisfy those needs. This will increase both the perceived quality of the service and consumer satisfaction.

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4 years ago
What is the amount of money you still owe to their credit card company called? A. credit card interest B. credit card balance C.
Snezhnost [94]

The amount of money that you still owe to the Credit card Company is called Credit card balance.

Credit card balance refers to the amount of money one has spent on their card and they haven’t paid back to the Credit card Company.

<h2>Further Explanation </h2>
  • A credit card is a card in which any payment made by the card holder using the card, then it means they have borrowed money from the Card Company to pay at a later date.
  • In other words, unlike debit cards, credit cards allows customers to borrow money from the Credit Company or the card issuer for the purposes of making purchases up to a certain limit.
<h3>Credit card balance </h3>
  • Credit card balance is the money that has been spent by the card holder and have not been paid back to the card issuer. For instance, if an individual spends $ 550 to make purchases of items, and they have not paid back, then the credit card balance will be $550.
<h3>Terms Associated with Credit Cards </h3><h3>Credit card limit  </h3>
  • Credit card limit refers to the maximum amount of money that the card holder is allowed to borrow on the card. The can holder, cannot make purchases exceeding the Credit card limit.
  • If the Card limit is exceeded then the Card issuer charges an over-limit fee depending on the agreement between the card holder and the card issuer.  
<h3>Credit card fee </h3>
  • Credit card fee is the annual fee that the card issuer or the card Company charges the card holder for the privilege of using the credit card. This fee may be also called participation fee or the membership fee.  
<h3>Credit card interest  </h3>
  • Credit card interest may be referred to as the Annual percentage rate, which is the annual rate of interest that includes the fees and the costs incurred to get a loan.  

Keywords: Credit card, Credit Card Company, Credit card limit, credit card holder.

<h2>Learn also about: </h2>
  1. Debit card and its advantage: brainly.com/question/1006222
  2. Difference between Credit card and debit card: brainly.com/question/10163886

Level: High school

Subject: Business

Topic: Trade  

Sub-topic: Modes of payment

3 0
3 years ago
Read 2 more answers
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