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
Agata [3.3K]
3 years ago
15

Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until the end of the 3rd year. From the e

nd of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $34,000. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
a. Calculate the net present value if the cost of capital is 12 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)
b. Should the project be undertaken?
Business
1 answer:
koban [17]3 years ago
7 0

Answer:

NPV = $23,146.99

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The NPV can be calculated using a financial calculator:

Cash flow in year o = $- 130,000 

Cash flow each year in year 1 and 2 = 0

Cash flow each year in year 3 to 12 = $34,000

I = 12%

NPV = $23,146.99

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

You might be interested in
Every one clock this now please!
Yanka [14]

Answer:

ranboo he's so unproblematic and he's so funny

Explanation:

5 0
3 years ago
Read 2 more answers
AHHHHHHHHHHH IDK WHAQT TO DO I HAVE FOUR DAYS TO COMPLETE 12 ASSIGNMENTS AND FIVE MIDTERMS I AM BEYOND STRESS SOMEONE SHOOT ME N
ikadub [295]
Maybe you should start working on them now because if you don’t then it’s going to be on you. And you’ll have to redo whatever the class
8 0
2 years ago
You design HR management and payroll software. At a recent networking event, you met the HR manger at a small local accounting f
ratelena [41]
I believe it is formal
7 0
3 years ago
Cullumber Company bought equipment for $150000 on January 1, 2021. Cullumber estimated the useful life to be 5 years with no sal
Leviafan [203]

Answer:

Annual depreciation 2022= $24,000

Explanation:

Giving the following information:

Purchase price= $150,000

Useful life= 5 years

Salvage value= $0

<u>First, we need to calculate the annual depreciation for 2021:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (150,000 - 0) / 5

Annual depreciation= $30,000

<u>Now, the revised depreciation:</u>

Annual depreciation= (150,000 - 30,000) / 5

Annual depreciation= $24,000

We divide by 5 years because one year has passed.

5 0
2 years ago
Many multinational companies have found that they need to alter their products to meet regulations or consumer preferences in ot
sladkih [1.3K]

Answer:

The correct answer is d) Sell single-serve packets of shampoo or soap at a low price.

Explanation:

When producing a product, companies usually take into account the population towards which it is directed and, through the needs of the client, carry out the products.

For example, in the case of multinational companies that export their products to countries such as Indonesia, Pakistan, and Sri Lanka, they observed that the prices of their products are not accessible to their customers due to the economic factor, so they must take other strategies.

Therefore, through the analysis made by the multinationals to these new products, they consider the sale of shampoo and soap at a more accessible price for the benefit of the clients and the company, so it can continue marketing.

<em>I hope this information can help you.</em>

4 0
2 years ago
Other questions:
  • Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $2.85 dividend every year, in perpetuity. If thi
    11·1 answer
  • Riverboat Adventures pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appra
    7·2 answers
  • Which one of the following is a distinguishing feature of a command system? A. Heavy reliance on markets B. Central planning C.
    6·2 answers
  • Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch
    6·1 answer
  • The rational-ignorance effect refers to the a. lack of incentive voters have to become well-informed about candidates and issues
    10·1 answer
  • What is a trust established while the owner of the trust is still alive
    8·1 answer
  • You work for an airline that is expanding its service overseas and hiring several thousand new employees from the countries that
    12·1 answer
  • According to the traditional approach to capital​ structure, the value of a firm will be maximized when​ ________. A. the financ
    6·2 answers
  • Help help help help help help help help
    15·2 answers
  • How are manufacturers trying to reverse or counteract the negative environmental impacts of manufacturing? (Select all that appl
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!