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
malfutka [58]
3 years ago
9

Dip N’ Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the

computation are as follows: Fort Collins Boulder Total present value of net cash flow $607,600 $624,000 Amount to be invested (620,000) (600,000) Net present value $(12,400) $ 24,000 a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places. Fort Collins Boulder Total present value of net cash flow $ $ Amount to be invested $ $ Present value index b. Which location does your analysis support?
Business
1 answer:
Leviafan [203]3 years ago
4 0

Answer:

The correct answer for option (a)  0.98 and 1.04 and for option (b) is Boulder Location.

Explanation:

According to the scenario, computation of the given data are as follows:

A). We can calculate the present value index by using following formula:

Present value index = Total present value of net cash flow ÷ Amount to be invested  

Present value index Ft. Collins = 607,600 ÷ 620,000  = 0.98

Present value index Boulder = $624,000 ÷ $600,000  = 1.04

Fort Collins has 0.98 present value index and boulder has 1.04 present value index.

B). Boulder location should be chosen according to the analysis. Because boulder has the 1.04  present value index which is greater than 1 while fort Collins has value less than 1.

You might be interested in
3. Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $22,000 cash; (b)
Fofino [41]

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $22,000

Accumulated depreciation-machine Dr, $148,800

($201,600 - $23,040 ÷ 6 × 5)

Loss on Sale of Machine Dr, $30,800

                 To Machine $201,600  ($192,000 + $8,000 + $1,600)

(To record Sale of the machine)

2. Cash Dr, $88,000

Accumulated depreciation-machine $148,800

($201,600 - $23,040 ÷ 6 × 5)

          To Gain on Sale of Machine $35,200

          To Machine $201,600

(Being Sale of the machine is recorded)

3. Cash Dr, $32,500

   Accumulated depreciation-machine Dr, $148,800

   Loss on disposal of Machine $20,300

                To Machine $201,600

(Being Sale of the machine is recorded)

7 0
3 years ago
Janice has two sons, Jerry and Barry. Janice is responsible for picking out what cereal Jerry and Barry will eat. Her husband, H
3241004551 [841]

Answer: Decider

Explanation:

Janice functions as a decider her family, where she decides the kind of cereal her children would consume. A decider is simply a person in charge of making decisions on an issue.

5 0
3 years ago
According to the rule of 72, if holly invests $200, $400, and $1000 into three separate accounts with the same interest rate, wh
777dan777 [17]
It will double at the same rate
7 0
3 years ago
Read 2 more answers
You do not need to see proof of cash donations made by taxpayer if you feel that the information is not unusual or questionable.
Sliva [168]

Answer:

The correct answer is letter "A": True.

Explanation:

The Internal Service Revenue (<em>IRS</em>) offers Volunteer Income Tax Assistance (<em>VITA</em>) for elderly people who do not know how to file taxes on their own. The volunteers follow a series of practices during the interview with the taxpayers to gather their taxable information accurately. The principle of Due Diligence allows volunteers to <em>ask for clarification when the taxpayer information seems unclear or inconsistent</em>. However, if the information is not unusual, there is no need to request proof of it.

8 0
3 years ago
Select a local business that doesn’t seem to be thriving. Develop a set of recommendations for how that business could use techn
Phantasy [73]

A local business that doesn't seem to be thriving should analyze its planning to identify marketing strategies to create value and attract customers.

<h3 /><h3>How to develop an effective marketing strategy?</h3>

It is necessary that there is an analysis of the micro and macro environment in which the company is inserted, identifying the needs and desires of consumers, the company's competitive strengths and differentials, to generate value and positioning in the market.

Therefore, it is essential that the company uses the marketing mix and other tools such as SWOT analysis to assist in the strategic direction that will lead it to be successful.

Find out more about marketing mix here:

brainly.com/question/14037774

#SPJ1

3 0
1 year ago
Other questions:
  • The GDP of a country hasnt improved in the past three years. The central bank decided to take a measure that will increase the a
    15·1 answer
  • Dan borrowed $745 for a new coffee table. He will make 10 monthly payments of $85 to repay the loan. How much will he pay
    10·2 answers
  • Complete the statement with correct word in a recent survey. It was observed that many Asian youths have stated watching America
    15·2 answers
  • Katya is developing a business message about a green initiative that her company is hoping to launch. In the process of creating
    10·1 answer
  • All your clients like to be listened to accurately. If your client is culturally different from you, it may be more difficult fo
    12·2 answers
  • The Chattanooga Furniture store gets an average of 50 customers per shift. Marilyn Helms, the manager, wants to calculate whethe
    13·1 answer
  • The wage is currently $20 per hour. There is no non-labor income.
    5·1 answer
  • You are the ceo of a telemarketing company. one of your employees posts political ads in his cubicle. the company has a policy p
    8·1 answer
  • Anyone got discord? I'm 17
    12·2 answers
  • Consumer A and Consumer B live in the same state where a sales taxes increase of 1% on all items has been enacted Consumer A has
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!