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kiruha [24]
2 years ago
6

Kermit is considering purchasing a new computer system. The purchase price is $133,063. Kermit will borrow one-fourth of the pur

chase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $6,641 at that time. Over the 5-year period, Kermit expects to pay a technician $20,000 per year to maintain the system but will save $61,427 per year through increased efficiencies. Kermit uses a MARR of 12 percent to evaluate investments. What is the net present worth for this new computer system?
Business
1 answer:
lesya [120]2 years ago
7 0

Answer:

NPV =  $20,040.35  

Explanation

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

Annual net cash inflow = Savings - Technician cost = 61,427- 20,000

                                       = $41,427

PV of Cash flow= $41,427  × (1-(1.12^(-5))/0.12=  149,335.06  

PV of salvage value = 1.12^(-5)×$6,641 =  3768.281749

NPV = 149,335.06  + 3,768.281  -133,063= 20,040.35  

             

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a country has national saving of $50 billion, government expenditures of $30 billion, domestic investment of $10 billion, and ne
zubka84 [21]

The supply of loanable funds is $50 billion. Thus, option c is correct.

The supply of loanable funds considers only national savings( public savings + private savings), thus the supply of funds shall be only $50 billion. The national savings is the rate that measures the amount of income that households, business, and the government saves. It looks at the difference between a nation's income and consumption.

The national savings rate is the GDP that is saved rather than spent in the economy. It is an indicator of a nation's health as it shows the trends in savings.

Hence, option c is correct, that is $50 billion.

Learn more about national savings here brainly.com/question/15109837

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8 0
1 year ago
If the price of gasoline increases, most likely, ceteris paribus, the result will
avanturin [10]

Answer:

A

Explanation:

4 0
3 years ago
Read 2 more answers
The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a produ
Naddika [18.5K]

Answer:

\arge\boxed{\large\boxed{\$ 117,788}}

Explanation:

Assume the <em>cost</em> equation to be:

                Cost(x)=Fixed\text{ }costs+Variable\text{ }costs\\\\Cost(x)=A+Bx

Where x is the number of units (wooden baseball bats) produced.

The <em>average cost per unit of production level</em> is the total cost divided by the number of units produced:

              Average\text{ }cost(x)=Cost(x)/x\\\\Average\text{ }cost(x)=(A+Bx)/x\\

You are given that the <em>average cost per unit of a production level of 7,700 bats is $14</em>, then:

             14=(A+7,700B)/7,700

You are also given that the <em>fixed costs</em> are <em>$22,500</em>, thus A = 22,500. Hence, you can substitute the value of A in the previous equation and find B:

              14=(22,500+7,700B)/7,700\\\\14\times 7,700=22,500+7,700B\\\\107,800-22,500=7,700B\\\\85,300/7,700=B\\\\B=11.08

Now you can complete the cost equation:

             

               Cost(x)=\$ 22,500+11.08x

And to predict the total costs for 8,600 bats you must subsitute x with 8,600 in the previous equation:

             Cost(8,600)=\$ 22,500+11.08(8,600)=\$ 117,788

5 0
3 years ago
Sales revenue for a sporting goods store amounted to $528,000 for the current period. All sales are on account and are subject t
weqwewe [10]

Answer:

The answer is A. A debit to Accounts Receivable for $ 586,080

Explanation:

Sales tax is an additional amount of money one pays based on a percentage of the selling price of goods and services that are purchased.

The sales tax amount will be added to sales revenue to form the total bill.

Sales revenue ----------------- $528,00

Sales tax -------------------------- 11%

Sales tax amount

$528,00 x 0.11

= $58,080

Therefore, total bill is:

$528,00 + $58,080

=$586,080.

Debit increases an asset(accounts receivable) while credit decreases an asset(accounts receivable).

Since the accounts receivable will increase, it will be on debit side.

8 0
3 years ago
Wordmill Publications purchased a printing machine for $40,000 on January 1, 20X1. On December 31, 20X5, it sold the printing ma
Diano4ka-milaya [45]

Answer:

d. The gain of $5,000 is deducted in the operating activities section of the statement of cash flows.

Explanation:

Printing machine is fixed Asset and gain on sale of fixed assets are deducted in operating activities before changes in working capital as it is non operating income and these are deducted from the figure of net profit which is shown in operating activities.

8 0
2 years ago
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