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
Using the percentage-of-sales method, the estimated total uncollectible accounts are $7,322. The Allowance for Uncollectible Acc
xenn [34]

Answer:

B. $9,957.

Explanation:

The computation is adjusted amount for Uncollectible account expense is shown below:

= The estimated total uncollectible accounts + debit balance of Allowance for uncollectible accounts

= $7,322 + $2,635

= $9,957

For computing the adjusted amount we added the estimated total uncollectible accounts and the debit balance of Allowance for uncollectible accounts

8 0
3 years ago
Legal Forces Legal forces are important external forces that international managers need to understand. They are developed at th
torisob [31]

Answer:

1. per se application

U.S. Competition Law

This law checks whether certain parts of a contract or agreement have violated US antitrust laws.

2. Misuse of activity

EU Competition Law

This is part of the European Union's competition law that prohibits the use of activity to try to gain unfair advantges.

3. Extraterritoriality

US and EU

This is a provision in both US and EU anti-competition and anti-trust laws that states that the activities of foreign companies fall under the law if these activities influence the people within the jurisdiction of the US or the EU.

4. Trade obstacle, nontariff

France

These are a part of the French system.

5. Strict liability

U.S. Tort Law

A concept in US Tort law that states that a person is liable for an offence they committed and their state of mind or intent when they committed said offence is irrelevant.

6. Punitive damages

U.S. Product Liability Law

A concept in the US that allows for the extra punishment of the party in the wrong to dissuade others from doing so and to reward the party in the right more justly.

4 0
2 years ago
Sally tends to procrastinate early in a project's development, but she always comes through when the pressure is on. for sally,
iragen [17]

Constructive stress. When stress produces results it is constructive.

7 0
3 years ago
Billy never lets money stay in his pockets, he thinks if it is there he has to spend it. Often he spends it on useless "stuff".
AleksandrR [38]

Answer:

let him put it where he won't see them until It is enough for buying his wants

4 0
3 years ago
Read 2 more answers
Convertible bondsa. have priority over other indebtedness.b. are usually secured by a first or second mortgage.c. pay interest o
zmey [24]

Answer:

d. may be exchanged for equity securities.

Explanation:

Convertible bonds

It is a debt security , which is fixed and which yields the  interest payments , but it can be converted to a predetermined number of the equity shares or common stock .

The bond to stock conversion can be done at a number of times during the life of the bond .

These bonds are mostly issued by the companies which have low credit ratings and have potential of higher growth .

4 0
3 years ago
Other questions:
  • Custom foot operates six retail locations. at first glance, none looks different from a typical boot store. but here the only bo
    12·2 answers
  • You are currently spending much​ time, effort and money on your education. economists call education an investment in
    7·1 answer
  • Accounting standard-setters use the following process in establishing accounting standards:__________. A. Discussion paper, rese
    11·2 answers
  • In marketing, we define new-product development as: The development of original products, product improvements, product modifica
    14·1 answer
  • true or false: M-3 is money that people can gain access to quickly and easily to pay for goods and services.
    8·1 answer
  • Unlike a product/service differentiation competitive strategy, a niche strategy:
    14·1 answer
  • You are offered two jobs, one in Chicago paying $67,000 and one in Dallas paying $58,000. The price index in Chicago is 110.8, a
    9·1 answer
  • The situation described in the first excerpt, what is the inspector's opinion of employer taylor, ibbotson, and co.? what phrase
    15·1 answer
  • Psychologists have observed that: Multiple Choice once investors have made a loss, they become much more willing to take risks.
    11·1 answer
  • ______ costs are costs that make customers reluctant to switch to another product or service. Multiple choice question. Producti
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!