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erastovalidia [21]
3 years ago
14

Using the present value tables in Exhibits 26-3 and 26-4, Assume that the required rate of return for investment projects at Rip

penstock Corporation is 12 percent. One department has proposed investment in new equipment with a 10-year life span and a present value of expected future annual cash flows of $120,000. The equipment’s initial outlay cost is $125,000 and it has a salvage value of $10,000. Will this investment project meet the required rate of return for the company? (Round your "PV factors" to 3 decimal places.)
Business
1 answer:
ehidna [41]3 years ago
5 0

Answer:

No

Explanation:

the required rate of return = 12%

if the present value of the project's cash flows after being discounted at the required rate of return = $120,000, then the net present value (NPV) of the project is negative. Future cash flows are discounted at the company's required rate of return, if they were discounted at a lower rate, their present value would be higher.

Any project with a negative NPV should be rejected because it doesn't provide enough cash flows.

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<span>There are four methods in order for Martha to sell her product to prospective buyers:
</span>1. Know the principal attributes of a product.
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8 0
4 years ago
Over the last week, you had 50 customers who bought a total of 40 hotdogs at $2.00, 10 grilled cheeses at $4.00, and 5 cheesebur
kobusy [5.1K]

$3.20

Take the total sales divided by total customers.

Sales of hotdogs 40* $2 = $80

of grilled cheese 10* $5 = $50

of cheeseburgers 5 * $6 = $30

Total sales $160/50 customer = $3.20/per customer

4 0
3 years ago
Dell Computers wants to reach all potential users of their products, both industrial buyers and final consumers. They would most
Vera_Pavlovna [14]

Answer:

The correct answer is letter "B": national.

Explanation:

National advertising refers to a marketing strategy in which a company aims to offer a good or service in the same proportion all over a country. This advertising is massive and involves promoting the corporation's product through different mediums of communications such as <em>television, radio, newspapers, </em>or <em>billboards</em>. The campaign is directed to individual consumers and organizations.

5 0
3 years ago
Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In s
Rus_ich [418]

Answer:

The correct answer is True.

Explanation:

A perfectly competitive market has the following characteristics:

• There are many buyers and sellers in the

market.

• The goods offered by the different sellers

They are largely identical.

• Companies can freely enter and exit the

market.

As a result of these characteristics, perfectly competitive markets, result in:

• The actions of any buyer or seller

have an insignificant impact on the price of

market.

• Each buyer and seller takes the prices of

Market as dice.

A competitive market has many buyers and sellers trading with identical products so that each buyer and seller is price-accepting.

• Buyers and sellers must accept the price

determined by the market.

6 0
3 years ago
The Vernon Corporation was formed on January 2, 2018. The company sold 20,000 shares of $8.00 par value stock for $20.00 per sha
Ksivusya [100]

Answer:

B) DR Cash 128,000 CR Treasury stock 96,000 CR Paid-in capital from treasury stock 32,000

Explanation:

Based on the information given the correct journal entry to record the resale of treasury stock is to Debit Cash $128,000 Credit Treasury stock $96,000 and Credit Paid-in capital from treasury stock $32,000

DR Cash $128,000

(4000*$32)

CR Treasury stock $96,000

(4000*$24)

CR Paid in capital in excess of par $32,000

(4000*$8)

6 0
3 years ago
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