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
Mars2501 [29]
3 years ago
6

Third State Bank wants to add a new branch office. It has determined that the cost of construction of the new facility will be $

1.5 million with another $500,000 in organizational costs. The bank has estimated that it will generate $319,522 per year in net revenues for 20 years. If Third State requires a 17% return on its money, what is this project's net present value?
Business
1 answer:
Gnesinka [82]3 years ago
8 0

Answer:

$298,206

Explanation:

The computation of the Net present value is shown below  

= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment  

where,  

The Initial investment is $1,500,000

All yearly cash flows would be

= Annual net operating cash inflows × PVIFA for 20 years at 17%  

= $319,522 × 5.6278

= $1,798,206

Refer to the PVIFA table

Now put these values to the above formula  

So, the value would equal to

= $1,798,206 - $1,500,000

= $298,206

You might be interested in
Paid $1,300 towards principal of the notes payable<br> What is the credit and debit for this?
Roman55 [17]
Credit $1300 from you cash or bank account and Debit $1300 to Principal account.
4 0
3 years ago
Between _________, it is estimated that Spanish America produced 150,000 tons of silver (including gold converted into silver we
liq [111]

Answer:

1550 - 1750

Explanation:

The primary mining centers in colonial Spanish America were Potosi in southern Bolivia, and Zacatecas and Guanajuato in northern Mexico. Measured in current dollars, silver worth tens billions of dollars was extracted and shipped to Europe during colonial times, but currently those places are extremely poor.  

8 0
3 years ago
Based on the circular flow of business, what are two ways that households impact the economy? A) They provide wages and products
bonufazy [111]

Answer:

D. They provide the four factors of production and spend money on the product market.

Explanation:

In circular flow of business, all the players namely; household, government agencies, firms and others in an economy have an important role to play.

The level of a nation's employment status, price level and income are determined as a result of various interactions among firms/businesses, household and government agencies.

When a unit spends money, it becomes the income of another unit. Household goes to market with their monies to buy goods and services, while firms goes to the factor market to buy the resources, which are owned by the household, to produce the goods and services.

As for the government agencies, they collect taxes on the goods and services produced and on income(both household and firms) . Government also buys goods and services inorder to produce specialize goods.

Through these interactions, money and business changes hands from the household to the firm and then to government. It goes back to the household and the list goes on and on.

7 0
4 years ago
Heather Oak is trying to prepare a personal budget and has identified the following list of monthly costs. Identify each cost as
worty [1.4K]

Answer:

Cost                     Nature            Cost driver

Rent                     Fixed                Area per ft

Utilities                 Variable             Units used per activity

Car Payment        Variable             Km. run

Cell phone bill      Variable             Charges peer min of usage

Gasoline               Variable             Usage per in ltr.

Cable Bill              Fixed                 Number of connected devices

Groceries             Variable               Usage per day

Dining Out            Variable              Number of days dined out

7 0
4 years ago
The aggregate demand curve would shift to the right as a result of A. tax increases. B. a drop in the price level. C. a drop in
UNO [17]

Answer:

. C) a drop in the foreign exchange value of the dollar.

Explanation:

An aggregate demand curve can be regarded as a curve that display total spending that is available

domestic goods/services with respect to their price level. the horizontal axis provide the real GDP while price level is displayed by vertical axis. It should be noted that The aggregate demand curve would shift to the right as a result a drop in the foreign exchange value of the dollar.

6 0
3 years ago
Other questions:
  • Sarah's divorce was finalized on March 4, 2019. As ordered in the divorce decree, Sarah received $14,000 in alimony for the year
    5·1 answer
  • are the two ways firms can obtain new products. A. New product development and existing product modification B. Acquisitions and
    14·2 answers
  • Current Attempt in Progress The following information is available for Zoe’s Activewear Inc. for three recent fiscal years. 2022
    12·1 answer
  • A 6.5 percent coupon bond with 14 years left to maturity is priced to offer a 7.2 percent yield to maturity. You believe that in
    6·1 answer
  • Movie stars such as Salma Hayeck, Samuel L. Jackson, Dwayne Johnson, and Jennifer Lawrence are paid millions of dollars per movi
    9·1 answer
  • A nightclub has several types of employees, each with a specialized task. Bartenders make drinks, bouncers check identification,
    10·1 answer
  • How to get a refund on Brainly
    7·2 answers
  • Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 30%. The T-bill rate
    5·1 answer
  • 1. In your opinion, what do you think are the common thing that is found in all the elasticity
    7·1 answer
  • ______________________ increased visibility of purchasing from the mid 70s to the mid 80s.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!