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
Allisa [31]
3 years ago
11

Poe Company is considering the purchase of new equipment costing $90,000. The projected net cash flows are $45,000 for the first

two years and $40,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine.
Business
1 answer:
Ludmilka [50]3 years ago
4 0

Answer:

NPV = $45,472.30

Explanation:

<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.  </em>

<em>NPV of an investment:  </em>

NPV = PV of Cash inflows - PV of cash outflow  

PV of cash inflows = 45,000  ×1 .1^(-1) +  45,000 × 1.1^(-2) +  40,000 × 1.1^(-3) +  40,000 × 1.1^(-4)= 135,472.3038

Initial cost = 90,000

NPV = 135,472.3038  - 90,000 =$45,472.3038

NPV = $45,472.30

                             

You might be interested in
Lobbyists are hired by companies to influence legislation to meet a company's goals. They ask for things needed to program plans
masha68 [24]

Answer:

It is A hope this helps

8 0
2 years ago
One advantage of modularization is that it simplifies the ____.
Basile [38]
One advantage of modularization is that it simplifies its own manufacturing systems. With this, companies can separate their material cost and product development, and they can also optimize their total product cost through increasing the potential of the variety of products, having a fast product development and upgrade, having a better time-to-market, service support, aftermarket, and lastly, enabling continuous market and product improvement. 
5 0
2 years ago
Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures
Svetlanka [38]

Answer: Materiality

                   

Explanation: In simple words, materiality refers to the accounting concept which states that only those transaction should be recorded in the financial statements which are important to the stakeholders.

In other words, the transactions should be recorded in such a way that it gives some value to the stakeholders.

Therefore, in the given case, steve reported two expenditures in the fiancial statement as the amount is significant, thus,must be holding the value to stakeholders.

Hence the correct option is D.

5 0
3 years ago
What are some of the troubles that could occur in the economy if inflation rate got as high as 8% or 10% per year?
andrezito [222]

Answer:

Some of the troubles that could occur in the economy if inflation rate get as high as 8% or 10% per year are:

1) Foreign investors will avoid the country.

2) Money losses value very fast causing an increase in the prices of goods and services.

3) The economy becomes unstable making the the government leaders to loose credibility.

Explanation:

The type of inflation that gets as high as 8% or 10% is called Galloping inflation.

Some of the troubles that could occur in the economy if inflation rate get as high as 8% or 10% per year are:

1) Foreign investors will avoid the country.

2) Money losses value very fast causing an increase in the prices of goods and services.

3) The economy becomes unstable making the the government leaders to loose credibility.

4 0
3 years ago
I got called a street walker for this outfit,makeup and jewelry that i didn't even want to wear by my stepfamily when my cousin
yuradex [85]
You look like a burned victim
4 0
3 years ago
Other questions:
  • Cory Bash has been a private company for all of its business life. The owners long to expand their vision around the world, but
    5·1 answer
  • Which of the following choices is not an example of a transferable skill
    6·1 answer
  • If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labo
    8·1 answer
  • What tendency is most likely manifest in the following situation? An engagement team performed a substantive analytical procedur
    15·1 answer
  • Knight Company reports the following costs and expenses in May. Factory utilities $16,120 Direct labor $69,685 Depreciation on f
    15·1 answer
  • On May 1, 2016, Meta Computer, Inc., enters into a contract to sell 5,000 units of Comfort Office Keyboard to
    5·1 answer
  • Waterway Company on July 15 sells merchandise on account to Carla Vista Co. for $4600, terms 3/10, n/30. On July 20 Carla Vista
    11·2 answers
  • A. Suppose there is a surge in consumer confidence, creating an increase in aggregate demand in the economy. The Federal Reserve
    5·1 answer
  • The idea of rational expectations suggests that :_________
    11·1 answer
  • The six steps for recording a business transaction in the general journal are shown below, out of order. In your working papers
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!