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OleMash [197]
3 years ago
14

If a company has a required rate of return of 15%, should the following project be accepted based on these expected cash flows b

elow?Year 0 1 2 3 4 5 6 Cash Flow (274,000) 68,000 73,000 76,500 78,000 82,500 77,000 Please explain why or why not the company should move forward with this endeavor.
Business
1 answer:
Citrus2011 [14]3 years ago
8 0

Answer:

Yes

Explanation:

In order for deciding whether the company should forward or not, we have to find out the net present value which is shown below:

Year              Cash flows             Discount factor       Present value  

0                        -274000                      1                        -274000

1                           68000                    0.8696                   59130.43

2                          73000                    0.7561                    55198.49

3                           76500                    0.6575                   50299.99

4                          78000                      0.5718                   44596.75

5                          82500                     0.4972                   41017.08

6                           77000                     0.4323                    33289.22

Total present value                                                           283531.97

Net present value                                                                9531.97

Since the net present value comes in positive so the project should be accpeted

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Which of the following is least likely a function of the centeral bank in an economy? 1. Managing the country's foreign exchange
Pavlova-9 [17]

Answer:

the rigt answer is A.

Explanation:

One of the main functions of the central bank is to manage and protect gold and foreign exchange reserves in the country.

5 0
3 years ago
Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His
damaskus [11]

Answer:

That is $2,000 loss

Explanation:

After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.

According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.

That is

Gain or loss = amount paid by insurance company- cost of replacement property

Gain or loss= 140,000- 142,000

Gain or loss= -$2,000

That is $2,000 loss

8 0
3 years ago
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ruslelena [56]

<span>A company wins a contract to be the sole provider of phone and cable television service for a city.</span>
4 0
3 years ago
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Jenny manages sales dealership of high-end luxury brand of automobile. Her target market is limited to a specific social class,
Alborosie

Answer:

The correct answer is letter "A": cheapening his brand .

Explanation:

Businesses of luxury objects such as advanced-technology vehicles have a differential advantage related to other carmakers. Most of their customers prefer those cars because they give them a certain status in society and are accessible to a few people because of the high prices.

Then, <em>if Jeff's companies decide to manufacture cars for the middle class, the dealer risks cheapening the brand but the number of customers could exponentially increase.</em>

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An information technology analyst believes that they are losing customers on their website who find the checkout and purchase sy
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Two questions:

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For instance, if the p-value were .240 and the alpha was .05 you would reject the null hypothesis and say that the ads may have had an effect on the outcome.

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