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klemol [59]
3 years ago
7

A project will produce an operating cash flow of $14,600 a year for 7 years. the initial fixed asset investment in the project w

ill be $48,900. the net aftertax salvage value is estimated at $12,000 and will be received during the last year of the project's life. what is the net present value of the project if the required rate of return is 12 percent?
Business
1 answer:
Leviafan [203]3 years ago
3 0
<span>Answer: The net present value is the sum of the three present values. NPV = PV of initial investment + PV of 7 year annuity + PV of lump sum salvage NPV = -48900 + 14600 x (1 - 1 / (1 + 12%)^7) / 12% + 12000/(1+12%)^7 = 23,159.04</span>
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garik1379 [7]

Answer:

$58,600

Explanation:

Calculation for what Healey Company's direct materials used for the year is:

Using this formula

Direct materials used for the year=Beginning Raw Materials + Raw Materials Purchased - Ending Raw Materials

Let plug in the formula

Direct materials used for the year = $15,200 + $60,000 - $16,600

Direct materials used for the year= $58,600

Therefore Healey Company's direct materials used for the year is:$58,600

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Answer:

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Answer:

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Price: There should be the reasonable price to the customers who will be able to buy your products. Sure, the price is established after the analysis of your costs (fix, variable and etc.). However, you should be careful about your rivals in the price policy. The buyers will have always power on you in this case so they can substitute your product to others.

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3 years ago
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$444.07

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EMI = [P * I * (1+I)^N]/[(1+I)^N-1]

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