Answer:
-$414,444.44
Explanation:
The computation of the net present value is shown below:
Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)
= -$1,570,000 + $104,000 ÷ (12% - 3%)
= -$1,570,000 + $1,155,555.56
= -$414,444.44
Hence, the net present value is -$414,444.44
Since the net present value comes in negative so the project is rejected
Answer: check the attached file for the answer
Explanation:
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Answer:
$120 per unit
Explanation:
The computation of minimum acceptable transfer price is shown below:-
If the division of the transferor does not have spare capacity, the minimum transfer price is equal to variable cost per unit and the contribution margin per unit
Minimum transfer price = Variable cost per unit + (Selling price to outside customers - Variable cost per unit)
= $72 + ($120 - $72)
= $72 + $48
= $120 per unit
Therefore for computing the minimum transfer price we simply applied the above formula.
Answer:
We to invest <em> $ 17,213 per year to buy the car in seven years from now</em>
Explanation:
<u><em>First, we solve for the future value of the car:</em></u>
Principal 83,800.00
time 7.00
rate 0.10000
Amount 163,302.49
<u><em>Then, for the PTM to achieve tham amount in 7 years:</em></u>
FV 163,302
time 7
rate 0.1
<em>C $ 17,212.981 </em>
