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ra1l [238]
3 years ago
7

You are making a $120,000 investment and feel that a 15% rate of return is reasonable, given the nature of the risks involved. Y

ou expect to receive $48,000 in the first year, $54,000 in the second year, and $76,000 in the third year. You expect to pay out $12,000 as a disposal cost in the fourth year. What is the net present value of this investment given your expectations
Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer:

$5,681.08

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator

Cash flow in year 0 = $-120,000 

Cash flow in year 1 = $48,000

Cash flow in year 2 = $54,000

Cash flow in year 3 = $76,000

Cash flow in year 4 = $-12,000

I = 15%

NPV = $5,681.08

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, truck
Contact [7]

Answer:

Volatility

Explanation:

Volatility of industrial demand is the uncertainty in demand for product or parts by consumers. Companies need to adequately prepare for these changes in demand by the consumer so as to adequately provide the inventory or product to the customer.

In the given scenario Toyota is manufacturing product for all demands in the market place so as to capture all market shares.

They are producing both traditionally furled cars and the Mirai (a car that uses electricity). By this move they are appealing to both demand for normal fuel cars and those that want to use alternative energy sources

8 0
2 years ago
This year Randy paid $29,050 of interest on his residence. (Randy borrowed $464,000 to buy his residence, and it is currently wo
Luden [163]

Answer:

the last part of the question is missing, so I looked for it:

a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.

b. Randy had no investment income this year, and his AGI is $75,000.

a) Randy can deduct $31,575:

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b) Randy can deduct $29,050

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5 0
3 years ago
An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly reg
Lemur [1.5K]

Answer:

B.

Explanation:

The investor should consider that they may find that the restaurant's financial statements undervalue the true value of its resources. If this were to be the case then the investor would have made a lot of money since they would have paid face value for the restaurant when in actuality it was massively undervalued and is worth a lot more, meaning he would make a large profit on his investment from the beginning.

8 0
3 years ago
"The price (P) of designer jeans is affected by the supply (S) and the demand (D).
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3 0
3 years ago
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Twenty years ago, a family purchased a vacant lot for $26,500. they made no improvements during the time they owned the property
KonstantinChe [14]
To find the gross profit margin found by:
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Revenue = $62,275
Cost of goods sold (purchase price) = $26,500

= (62,275 - 26,500)/62,275
= 35,775/62,275
= 0.57 x 100
Percentage of gross profit = 57%
3 0
3 years ago
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