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
mafiozo [28]
4 years ago
14

A company is evaluating an expansion. This capital investment will require a cash outflow today of $6,500,000. The firm estimate

s that the investment will pay out a cash flow of $900,000 per year for the next 12 years, and then nothing after. The risk adjusted discount rate required on this project is 8%, calculate the net present value of this investment.
Business
1 answer:
Inga [223]4 years ago
8 0

Answer:

Net present value of this project is $282470.22

Explanation:

Present value of inflows = Cash Inflow * Present value of discounting factor(rate%,time period)

=900,000/1.08+900,000/1.08^2+900,000/1.08^3+900,000/1.08^4+900,000/1.08^5+900,000/1.08^6+900,000/1.08^7+900,000/1.08^8+900,000/1.08^9+900,000/1.08^10+900,000/1.08^11+900,000/1.08^12

=6782470.22

NPV=Present value of inflows-Present value of outflows

=6782470.22-6,500,000

=$282470.22

You might be interested in
The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, i
photoshop1234 [79]

Answer:

The remaining part of the question is:

McDonald's trademarked name and menu items represent, in essence, which form of market entry?

A) joint ventures

B) franchising

C) 100% ownership

D) exporting

E) acquisition

Correct Answer:

B) <u>franchising </u>

Explanation:

Franchising is a business model whereby a company that their specialty is in retailing industry, as well as the fast-food industry, adopts a global expansion through other companies by licensing their business name and trademarks to them.

6 0
4 years ago
On January 1, 2020 (the date of grant), Concord Corporation issues 2,300 shares of restricted stock to its executives. The fair
ioda

Answer:

Explanation:

Date. Description/Account. Debit. Credit.

1/1/2020. Unearned Compensation. $69,000

Paid - in Capital in Excess of Par. $69,000

Common stock. $10,000

12/31/2020 Compensation Expense. $23,000

Unearned Compensation. $23,000

5 0
3 years ago
Josh is a technological expert whose work with advanced broadband systems has made him one of the most high-profile figures at T
Sliva [168]

Answer:

visibility.

Explanation:

In this scenario, Josh is a technological expert who has carved a niche for himself in working with advanced broadband systems. Thus, Josh is one of the most high-profile figures due to his expertise at his work at Takemodo Telecommunications, one of the world’s leading technology companies.

Josh has his picture on the cover of magazines and his name popping up in several blogs all over the Internet.

This ultimately implies that, Josh has a high degree of visibility, which gives him influence over others.

Visibility simply means being famous and well known to many people across the world on several communication and media channels.

6 0
3 years ago
In January, Dieker Company requisitions raw materials for production as follows: Job 1 $970, Job 2 $1,700, Job 3 $790, and gener
Mekhanik [1.2K]

Answer:

Dr Work in Process Inventory $3460

Cr Manufacturing Overhead $660

Cr Raw materials Inventory $2,800

Explanation:

Preparation of a summary journal entry to record raw materials used.

Based on the information given the summary journal entry to record raw materials used will be:

Dr Work in Process Inventory $3460

($970+$1700+$790)

Cr Manufacturing Overhead $660

Cr Raw materials Inventory $2,800

($3460-$660)

(To record raw materials used)

3 0
3 years ago
As a company manager for Claimstat corporation, there is a 0.40 probability that you will be promoted this year. There is a 0.72
kipiarov [429]

Answer:

(1) If you get a promotion, what is the probability that you will also get a raise?

25% or 0.25

(2) Are getting a raise and being promoted independent events? Explain using probabilities.

yes, they are independent events because you a given one probability for getting a raise (40%) and another one for getting both a raise and a promotion (25%). If they were dependent events, the probability would be the same but they are not.

(3) Are these two events mutually exclusive? Explain using probabilities.

No they are not, again the probability of getting both a raise and a promotion is 25%.  

3 0
3 years ago
Other questions:
  • Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct compe
    5·1 answer
  • Charles and Joan Thompson file a joint return. In 2015, they had taxable income of $98,620 and paid tax of $16,604. Charles is a
    10·1 answer
  • One of the best methods for understanding a company's policies and procedures is
    13·2 answers
  • The CFO of a certain company always wears his green suit on a day that the firm is about to release positive information about h
    8·1 answer
  • Which of the following is not one of the typical sources of competitive pressures, according to Michael Porters five factor mode
    15·1 answer
  • If you are refused credit because of information contained in your credit report you will be unable to dispute the information.
    5·1 answer
  • Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The compan
    15·1 answer
  • Another company has been offered a four-year contract to supply the computing requirements for a local bank. Assume a 14% discou
    12·1 answer
  • What is your opinion on the saying "If it doesn't challenge you, it doesn't change you"?
    11·1 answer
  • If the government reduces some of the national debt and as a result households have more money to spend, this can result in: Gro
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!