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
Nadusha1986 [10]
3 years ago
5

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate

of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation:
Year Income from Operations Net Cash Flow
1 $18,750 $93,750
2 18,750 93,750
3 18,750 93,750
4 18,750 93,750
5 18,750 93,750
The net present value for this investment is:__________.
A) Negative $19,875
B) Positive $118,145
C) Positive $19,875
D) Negative $118,145
Business
1 answer:
MaRussiya [10]3 years ago
6 0

Answer:

C) Positive $19,875

Explanation:

The computation of net present value for this investment is shown below:-

Net present value = present value of cash inflows - Present value of cash outflow

= Annual cash inflow × present value annuity factor for 5 years at 6% - $375,000

= ($93,750 × 4.212) - $375,000

= $394,875 - $375,000

= $19,875

Therefore for computing the net present value we simply applied the above formula.

You might be interested in
It is reasonable for a company's management team to abandon efforts to win contracts to supply private-label footwear to chain r
mote1985 [20]

When the benchmarking data in the most recent FIR shows that the majority of sellers of Private-Label footwear had a margin over direct costs per pair sold that was below $5, It Is reasonable for a company's management team to abandon efforts to win Contracts to supply private-label footwear to chain retailers in a given year.

<h3>What is private label and private label retail?</h3>
  • A contract or third-party manufacturer creates a private label product, which is then marketed and sold by a retailer.
  • The retailer, decide everything about the product, including what goes inside.
  • How it is packaged, and how it looks on the label.
  • Also pay to have it made and shipped to your store.

To know more about Private label check this out:

brainly.com/question/28154878

#SPJ4

8 0
2 years ago
According to the Small Business Administration, the percentage of businesses that
Oksi-84 [34.3K]

Answer:

50%

Explanation:

7 0
3 years ago
Cynthia was charged $300 for specialist office visit her and indemnity policy will pay $125; what amount will she have to pay?
almond37 [142]
<span>Cynthia will have to pay the $175 that was not covered by her indemnity policy. An indemnity policy typically pays a fixed amount for qualified medical services, with the policy-holder responsible for the balance.</span>
5 0
4 years ago
The three contemporary management perspectives are the ______ viewpoints.
Anastaziya [24]
The answer to this question is: <span>Sytems viewpoint, contingency viewpoint, and quality management
</span>System viewpoint refers to an approach to problem-solving that see the problem at a whole. Contingency viewpoint is a developmental effort that made into managerial approach, and quality management refers to the effort to maintain the standard result of our tasks
6 0
3 years ago
Read 2 more answers
Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Its inventory at that date w
Murrr4er [49]

Answer: $603,500

Explanation:

Ending inventory in 2014;

= Ending inventory balance 2013 + ((\frac{Inventory current price 2014}{Price index 2014} * 100) - ending inventory 2013)) * Price index 2014/100

= 550,000 + ((\frac{642,000}{107}* 100) - 550,000)) * 107/100

= $603,500

3 0
3 years ago
Other questions:
  • Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits o
    15·1 answer
  • What fee may be collected prior to delivering required disclosures?
    9·1 answer
  • 2. If a plant asset costs $6,000.00, has accumulated depreciation of $5,000.00, and is sold for $1,200.00, the gain or loss on d
    7·1 answer
  • To join together against and have nothing to do with a person, business, nation, employer, or anything else in order to coerce o
    15·1 answer
  • A company makes a purchase for which the invoice is dated may 3 and shows terms of 3/10 1/20 n/45. what isthe last date by which
    8·1 answer
  • Describe how an unrelated tenant in common or joint tenant should protect him- or herself from potential liability (for negligen
    12·1 answer
  • 1. Critical analysis Q2 Suppose that college students in your town persuaded the town council to enact a law setting the maximum
    9·1 answer
  • Suppose ABC Bank offers to lend you $1,000 at a nominal rate of 8%, compounded monthly. The loan (principal plus interest) must
    13·1 answer
  • Please give a complete answer to all questions, citing the legal principle to support your answer.
    10·1 answer
  • Which employee had the highest earned commission? What specifically was their commission amount?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!