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Nutka1998 [239]
3 years ago
15

A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.6

0 today. The system is expected to generate net cash flows of $13,000 per year for the next 35 years. The investment has zero salvage value. QS 24-15 Net present value LO P3 The company requires an 8% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted?
Business
1 answer:
tatyana61 [14]3 years ago
4 0

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80  

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20  

The investment has a positive NPV,hence should be accepted

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Answer:

$12.53

Explanation:

Data provided in the question

Par value = $1,000

Coupon rate = 2.5%

Reference CPI = 204.89

Now CPI = 205.44

By considering the above information, the correct calculation of the current interest payment is

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= $1,000 × 205.44 ÷ 204.89 × 2.5% ÷ 2

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2 years ago
The Boeing Company buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of
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Answer:

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Value added is the difference between the price of product or service and the cost of producing it.

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3 years ago
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<u>Portals.</u>

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In order to function effectively a portal must be designed to withstand the large amount of user access, so that it works properly without slow system and damage to users. As a portal is a channel especially for commercial websites, it is imperative that the team of contributors who feed the portal have access to the large amount of structured and unstructured information, so that there is better organization and search accuracy and prevention of misfortune, such as failures on commercial sites such as a paid purchase that is not registered and ends up lost or a customer unable to access the site information screen.

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The Perez Lumber Company sells boards in a perfectly competitive market. The current marginal cost of boards at the current outp
mafiozo [28]

Answer:

c. decrease monthly output to 200 board feet.

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If the firm wants to maximize profit it should decrease monthly output to 200 board feet demand by doing so , vital rate  will ultimately increase the cost of the product and shift them to the profit. The correct answer is C.

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