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
GalinKa [24]
3 years ago
14

Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of $14,900, has predicted

cash inflows of $4,000 per year for 12 years, and has no salvage value. (a) Using a discount rate of 14 percent, determine the net present value of the investment proposal. (Round to the nearest whole number.)
Business
1 answer:
marishachu [46]3 years ago
4 0

Answer:

Year      Cashflow     [email protected]%      PV

                  $                                  $

0             (14,900)          1            (14,900)

1-12          4,000          5.6603    <u>22,640</u>

                                   NPV        <u> 7,740</u>

                                                                                                                                   

Explanation:

In this respect, we need to calculate the discount factor of annual cash  inflows for 12 years at 14 discount rate. For this purpose, present value annuity interest factor will be used since the cash inflows are constant. Then, we will multiply the annual cashflows  by the discount factor so as to obtain the present value of cash inflows. Then, we will deduct the initial outlay from the present value of cash inflows  in order to obtain the net present value of the proposal.  

You might be interested in
Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 9,800
Kobotan [32]

Answer:

Total overhead= $137,210

Explanation:

<u>First, we need to deduct the depreciation expense from the fixed overhead. Depreciation is not a cash cost.</u>

<u></u>

Fixed overhead= 117,440 - 10,610= $106,830

<u>Now, the cash disbursement for total overhead:</u>

Variable overhead= 3.1*9,800= 30,380

Fixed overhead= 106,830

Total overhead= $137,210

5 0
2 years ago
Which is true about the interest on corporate bonds?
shusha [124]
Interest corporate bonds is taxed as an income tax but can also be tax as capital gain. Usually the interest itself is considered as state income tax. For gain and losses, that's the time it will gain capital gain if the if is redeemed before its maturity stage.
5 0
3 years ago
Select the correct answer from each drop-down menu.
guajiro [1.7K]

Answer: 1

Explanation:

6 0
2 years ago
What are some things that affect consumers buying Decisions?​
labwork [276]
I’d say increasing prices, certain preferred brands, and the quality of the item.
5 0
2 years ago
An automobile dealer expects to sell 1250 cars a year. The cars cost $9000 plus a fixed charge of $1000 per delivery. If it cost
Brilliant_brown [7]

Answer:

Order size = 50 cars

The number of orders=25

Explanation:

<em>The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.  </em>

It is computed using the formulae below  

EOQ = √ (2× Co× D)/Ch  

Co- Ordering cost, Ch- Carrying cost - D- Annual demand  

EOQ= √2× 1000× 1250/1000= 50

Number of cars to be ordered per time, i.e optimal order size= 50 cars

Order size = 50 cars

b)

The number of times orders should be placed per year would be calculated as follows:

The number of orders = Annual demand/ order size

The number of orders= 1250/50 = 25

The number of orders=25

4 0
2 years ago
Other questions:
  • Morgan Sondgeroth Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations
    8·1 answer
  • Prepare journal entries to record the following four separate issuances of stock.
    11·1 answer
  • The campus barber faces stiff competition from the large number of shops that surround the campus area, and for all practical pu
    12·1 answer
  • Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers,
    15·1 answer
  • Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her
    15·1 answer
  • When partners own different portions of the business, the terms should be stated clearly in what document?
    6·2 answers
  • Beatrice invests $1,410 in an account that pays 3 percent simple interest. How much more could she have earned over a 4-year per
    13·1 answer
  • Which of the following illustrates Forward Vertical Integration? a. Subway sandwich company buying a bakery to make the bread fo
    15·1 answer
  • Apr. 8 Sold merchandise for $9,500 (that had cost $7,021) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4%
    7·1 answer
  • In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume t
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!