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larisa [96]
3 years ago
5

Webster, Inc. is considering an eightminusyear project that has an initial afterminustax outlay or afterminustax cost of​ $180,0

00. The future afterminustax cash inflows from its project for years 1 through 8 are the same at​ $35,000. Webster uses the net present value method and has a discount rate of​ 12%. Will Webster accept the​ project?
Business
1 answer:
Basile [38]3 years ago
4 0

Answer:

No

Explanation:

The estimation of the net present value is shown below:

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

where,  

The Initial investment is $180,000

All yearly cash flows would be

= Annual cost savings × PVIFA for 8 years at 12%  

= $35,000 × 4.9676

= $173,886

Refer to the PVIFA table

Now set these values to the formula above

So, the value would equal to

= $173,886 - $180,000

= -$6,134

Since the net present value is negative, so the project should not be accepted

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2 years ago
Name and explain money notes<br>​
Alborosie

Answer:

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6 0
2 years ago
Trading securities are a.reported as unrealized gains or losses on the income statement b.reported at fair value in the balance
dedylja [7]

Answer:

c.reported at fair value on the balance sheet and as unrealized gains or losses on the income statement

Explanation:

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5 0
2 years ago
Assume the money supply is $800, the velocity of money is 8, and the price level is 2. Using the quantity theory of money: a. De
KengaRu [80]

Answer:

3200

Explanation:

The computation of the level of real output is given below;

We know that

Money supply × velocity of money = Price level × Real output

And,  

Nominal output = Price level ×  real output.

Now  

a) level of real output = money supply × velocity of money ÷  price level

= 800 × 8 ÷ 2

= $6400 ÷ 2

= 3200

3 0
2 years ago
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