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Natasha_Volkova [10]
3 years ago
11

Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The

cash flows occur evenly throughout each year. Assume that Beyer requires a 12% return on its investments. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $77,000 $54,000 $82,000 $172,000 $38,000 $423,000
a. Compute the net present value of this investment.
Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows
1
2
3
4
5
Totals
Amount invested
Net present value
b. Should Beyer accept the investment?
Yes
No
Business
1 answer:
wlad13 [49]3 years ago
8 0

Answer:

a) Net Present Value = $ 304,495.12  

b) Beyer should accept the investment.

Explanation:

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

Year                                                     PV

1        77,000 × 1.12^(-1)       =  68,750.00  

2        54,000 × 1.12^(-2)    =  43,048.47  

3        82,000 ×  1.12^(-3)  =   58,365.98  

4      172,000 ×   1.12^(-4) =  109,309.11  

5       423,000 ×  1.12^(-5)=  <u>240,021.56  </u>

Total Present Value             519,495.12  

Initial cost                             <u>(215,000)</u>

Net Present Value                 <u>304,495.12 </u>

Net Present Value = $ 304,495.12  

b) Decision :

Beyer should accept the investment. This will increase the wealth of the shareholders by $ 304,495.12

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Answer: The correct answer is False.

Explanation:

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If a business is not ethical, then they need to change the way they work and do business and lead by example.

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A parent sold land costing $400,000 to its subsidiary for $450,000 in 2017. The subsidiary still holds the land at the end of 20
nadezda [96]

Answer:

correct option is a. Land

Explanation:

given data          

land costing =  $400,000        

subsidiary 2017 = $450,000      

land credit = $50,000        

                 

solution            

While when we consolidating  land that will  appear in the group asset at the amount of 450,000.  

so here the appreciation in the value of land is not  realized gain .

so that there will be  credit to land with 50,000

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5 0
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Pierce currently has $10,000. What was the value of his money five years ago if he has earned 5 percent interest each year?. . .
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Amount = $10000
Let us assume the principal = x
Amount of interest = 5%
Time = 5 years
Then
x (1 + i)^t = 10000
x(1 + 0.05)^5 = 10000
x(1.05)^5 = 10000
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x = 10000/1.276281
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Read 2 more answers
If the U.K. exports 14 billion British Pounds of​ products, and imports 10 billion British pounds of​ products, its trade balanc
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Answer:

D) 4 billion British pounds

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Trade balance or balance of trade can be defined as the difference between a country's export and import at a particular period of time.

It could be a deficit or surplus.

Deficit trade balance refers to when the export of a country is less than it's import. This means more products are imported that exported.

Surplus trade balance refers to when export of a country is more than the import.

Import is the bringing in of goods from a foreign country. This means a particular country purchase goods from another country.

Export is the sending out of goods to a foreign country. That is the selling of goods to another country.

Trade balance= Export- Import

=14 billion British pounds- 10 billion British pounds

=4 billion British pounds

The trade balance that occurs here is surplus trade balance where export is more than import.

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Match the academic requirements with the careers :
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Answer:

a. Equal opportunity officer-Bachelors degree

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Explanation:

a. Equal opportunity officer

An equal opportunity officer have the responsibility of formulating and ensuring policies that are not discriminatory and are in line with the best practice at the workplace. As the name suggests, they basically use policies that offer equal opportunity to all individuals without discrimination based on age, sex, religion and race. The following are typical duties and responsibilities of an equal opportunity officer;

1. They support and maintain legislation against workplace discrimination.

2. Offer advice to staff regarding equal opportunity practice at the workplace.

3. They work with other organizations that are also involved in equal opportunities.

4. They make sure that when there is a promotional opportunity, it is handled fairly.

5. Training courses regarding equal opportunities are designed and led by equal opportunity officers.

The minimum academic qualifications for becoming and equal opportunity officer is a Bachelors degree.

b. Court reporter

Court reporters are charged with the responsibility of transcribing oral information during a court session. They are also known as stenographers or steno-type operators. Some court reporters also offer real-time video-captioning for television proceedings. The y have the following duties;

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Court reporting is a hands on career that needs a lot of training in typing and listening. The academic qualifications usually considered here is a Tech program where aspiring candidates are trained on how to be an effective court reporter.

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