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nikklg [1K]
3 years ago
11

A project will produce cash inflows of $5,400 a year for 3 years with a final cash inflow of $2,400 in Year 4. The project's ini

tial cost is $13,400. What is the net present value if the required rate of return is 14.2 percent?
Business
1 answer:
rewona [7]3 years ago
8 0

Answer:

Net present value = $506.80

Explanation:

Provided details are

Cash outflow at present = $13,400

Present value will be same as is incurred today.

Cash inflow = $5,400 for 3 years and $2,400 in 4th year

Rate of required return = 14.2%

Present value factor for 3 years cumulative = 2.314

Present value factor for 4th year = 0.588

Present value of cash inflow = $5,400 \times 2.314 + $2.400 \times 0.588

= $12,495.60 + $1,411.2 = $13,906.80

Thus, net present value = Present value of cash inflow - Present value of cash outflow

= $13,906.80 - $13,400 = $506.80

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6 0
2 years ago
At the end of the year, Sheffield Co. has pretax financial income of $616,000. Included in the $616,000 is $78,400 interest inco
SVEN [57.7K]

Answer:

$173,820

Explanation:

pretax financial income $616,000

- interest income on municipal bonds ($78,400)

+ depreciation ($67,200 - $50,400) = $16,800

+ fine for dumping hazardous materials $25,000

taxable income = $579,400

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3 0
3 years ago
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Arada [10]
Translation

At a shipbuilding and repair company, products are subject to VAT, and VAT is calculated according to the withholding PP. Enterprises import welding rods directly from Kim Tin Co., Ltd.

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* During the period, there were arising economic transactions as follows:
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4. Export 1,600kg KT421 - 2.5 welding rod, 500kg KT6013 - 4.0 welding rod for SG125 shipbuilding
5. KT421 - 3.0 welding rod for SG130 shipbuilding is 500 kg; 50 kg used for repair workshop.
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