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alex41 [277]
3 years ago
13

A firm is evaluating an investment proposal which has an initial investment of $5,000 and cash flows presently valued at $4,000.

the net present value of the investment is _________.
Business
1 answer:
Anni [7]3 years ago
6 0

Answer:

The net present value of the investment is -$1,000

Explanation:

Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

= $4,000 - $5,000

= -$1,000

Hence, this investment proposal should not be accepted as it has a negative value

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Which one of the following accounts will have a credit balance?
Tems11 [23]

Answer:

Common Stock

Explanation:

We know that

The debit sections track assets, expenses side, and dividend while revenues, stockholder equity, and the liability side are reported in the credit section.

So in the given question, the common stock has credit balance whereas the dividend, supplies, and the salary expense has a debit balance

By proper posting of accounts in the correct columns, the total of debit and credit columns would be matched.

3 0
3 years ago
Physician, veterinarian, and medical laboratory careers are all in the _____ Career Cluster. Government and Public Administratio
Olin [163]

Answer:

health science

Explanation:

took the test

7 0
2 years ago
A new machine comes with 200 free service hours over the first year. Additional time costs $150 per hour. What are the average a
pishuonlain [190]

Answer:

(a) 0; 0

(b) $150 per hour; $16.67 per hour

(c) (b) $150 per hour; $53.57 per hour

Explanation:

(a) Number of hours = 125

Marginal cost = 0 (since service is cost less upto 200 hours)

Average cost = 0

(b) Number of hours = 225

Marginal cost = $150 per hour

Total cost = $150 × (225 - 200)

                = $150 × 25

                = $3,750

Average cost = Total cost ÷ Number of hours

                       = $3,750 ÷ 225

                       = $16.67 per hour

(c) Number of hours = 325

Marginal cost = $150 per hour

Total cost = $150 × (325 - 200)

                = $150 × 125

                = $18,750

Average cost = Total cost ÷ Number of hours

                       = $18,750 ÷ 325

                       = $53.57 per hour

5 0
3 years ago
Arrange the types of investments in the correct order from the least risky to the most risky investment.
Anarel [89]

Bonds will be the least risky since there is no risk involved at all. Bonds give out guaranteed payments and A rated bonds will be even more secure.

The next would be property. Since property is a physical asset, the risk involved is relatively lower than stocks.

The next would be retirement plans which would typically have bonds and stocks.

The most risky would be speculative stocks.

The order from least risky to most risky would be:

1. A rated bonds

2. Property

3. Retirement plans

4. Speculative stocks


3 0
3 years ago
Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40%
defon

Answer:

Its action would be optimal given an ordering cost of $28.31 per order

Explanation:

According to the given data we have the following:

economic order quantity, EOQ= 55 units

annual demand, D=235

holding cost per one unit per year, H=40%×$11=$4.4

ordering cost, S=?

In order to calculate the ordering cost we would have to use the following formula:

EOQ=√(<u>2×D×S)</u>

                (H)

Hence, S=<u>(EOQ)∧2×H</u>

                     2×D

           S=<u>(55)∧2×4.4</u>

                   2×235

          S=<u>13,310</u>

                470

          S=$28.31

Its action would be optimal given an ordering cost of $28.31 per order

4 0
3 years ago
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