All categories

3 years ago

The following data pertain to an investment proposal (Ignore income taxes.):

Business

1 answer:

Viefleur [7K]3 years ago

4 0

Answer:

The closest answer is option A,$7649

Explanation:

The net present value of the investment is the present value of annual cost savings minus the initial cost of investment.

present of cash flow=cash flow/(1+r)^n

r is the discount rate of 12%

n is the year the cash flow relates to ,for instance year zero for the initial investment

NPV=-$54,000+$16,000/(1+12%)^1+$16,000/(1+12%)^2+$16,000/(1+12%)^3+$16,000/(1+12%)^4+($16,000+$7,000)/(1+12%)^5=$ 7,648.41

note that the project gives $7,000 in salvage value in year 5

You might be interested in

Why is the relational approach to leadership useful for leading sustainability in an organisation? Please indicate 3 reasons.

Alisiya [41]

Answer:

The understanding including its context has been explained throughout the explanation segment elsewhere here.

Explanation:

The relational leadership style wants to replicate the understanding that organizational culture ultimately resulted from those throughout the actions including its exemplary entrepreneur with either the perspective that leadership moves away from relations between people, gatherings.
Relational leadership acknowledges that perhaps the performance of the connections clients construct seems to be the surprise to relevance and success.
This methodology takes time to build as well as accomplish the goals of organizations, requirements, standards of practices, and so much more. Relational leadership could sometimes be extremely successful, especially whether it is accurate, caring, and compassionate, strengthened by hand movements of companionship but instead embodied mostly in the cultural values of an organization.

4 0

3 years ago

If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the result

Anna [14]

Answer:

d. The price will stay the same, but the quantity will increase.

Explanation:

When the demand and supply both fall, the equilibrium quantity will definately fall but the price will remain the same. The new supply adapts to the reduction of the demand.

6 0

3 years ago

According to the rational choice decision-making process, the first step in solving this problem would be:

ser-zykov [4K]

Answer:

The correct answer is: identifying the problem or opportunity.

Explanation:

Identifying the problem or opportunity is the first step in the rational decision-making process. To know which direction the firm is going to take, the main issue must be pointed out so based on the possible solutions the company can provide, the first steps can be taken towards achieving the solution.

4 0

3 years ago

A personal business letter should begin with the

Harlamova29_29 [7]

You start a business letter with your adress

7 0

3 years ago

You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock

iogann1982 [59]

Answer:

dividend payment = $6

Explanation:

given data

sell = $65

pay = $65.74

require a return = 8%

solution

we will use here present value formula that is express as

current stock price ( present value ) = $\frac{future\ value}{1 + rate}$ ........................1

$65.74 = $\frac{65+d}{1+0.08}$

here d is dividend

solve it we get

d = $6.00

so dividend payment = $6

6 0

3 years ago