All categories

3 years ago

The following present value factors are provided for use in this problem.

Business

1 answer:

Sati [7]3 years ago

8 0

Answer:

$7,213.40

Explanation:

The computation of the net present value is shown below:

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

where,

Initial investment is $50,000

And, the present value till 3 year would be

= Annual cash flows × PVIFA factor for 3 years at 12%

= $18,000 × 2.4018

= $42,232.40

And, the present value for fourth year would be

= Annual cash flows × present value factor

= $22,000 × 0.6355

= $13,981

So, the total present value would be

= $43,232.40 + $13,981

= $57,213.40

Since the annual cash flows are same for the three years so we use the PVIFA table

Refer to the PVIFA table

Now put these values to the above formula

So, the value would be equal to

= $57,213.40 - $50,000

= $7,213.40

You might be interested in

A project has cash flows of −$161,900, $60,800, $62,300, and $75,000 for Years 0 to 3, respectively. The required rate of return

Degger [83]

Answer:

Therefore, the internal rate of return is lower than the expected return, for this the project must be rejected

Explanation:

Solution

Given that

The cash flow of a project consists of the following amount from year 0 to 3 = −$161,900, $60,800, $62,300, and $75,000

The rate of return required = 13%

Now,

Let the Internal rate of return be y%

Thus,

At internal rate of return, the value of present inflows is the same as the value of present outflows.

So,

Internal rate of return = Value of present inflows = Value of present outflows

=161900 =60800/1.0y +62300/1.0 y ^2 + 75000/ 1,0 y^3

Therefore, y = internal rate of return 10.41%

7 0

2 years ago

What are the benefits of "inventory pooling"? Establishing pools of inventory at each supplier and customer locationsCentralizes

PolarNik [594]

Answer:

The benefits of Inventory Pooling includes:

centralizing inventory into fewer locations thus reducing safety stocks and the amount of inventory needed in the supply chain.
Pulling back inventory when firms have too much at retail level.

Explanation:

inventory pooling is an operational strategy used to increase efficiency in stock management and analysis.

It is a supply chain tool that consolidates multiple inventory locations into a single one.

It is a centralized system that helps with stock keeping. It makes projections easier and helps manage shortfalls that may arise due to demand uncertainty.

It is cost effective by reducing cost of employing more staff and reduces the percentage error due to the centralized portal.

By reducing operational costs, profit is maximized.

8 0

3 years ago

Shareholders' equity is equal to: Group of answer choices total assets plus total liabilities. net fixed assets minus total liab

faust18 [17]

Shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.

Shareholders' equity refers to the amount owners of a company have invested in the said company:

Shareholders' equity includes the money they've directly invested and the accumulation of income that has been accrued in the name of the company as earned since the start of the investment and reinvestment.
It refers to the ownership of assets that may have liabilities or debts connected to them.
Shareholder's equity is equal to the net fixed assets of the company subtracted from the long-term debt and added to the net working capital.
Another way to ascertain shareholders' equity is by subtracting total assets from total liabilities.

Therefore, shareholders' equity is equal to net fixed assets minus long-term debt plus net working capital.

Learn more about shareholders' equity here: brainly.com/question/14032844

#SPJ4

3 0

2 years ago

__________ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes b

photoshop1234 [79]

Answer:

Risk capital

Explanation:

Risk capital relates to funds allocated to risky operation and used to invest heavy-risk, elevated-reward.

Diversification is key to a successful risk capital investment, because the prospects of each investment appear to be undetermined in nature, although the yields may be far above average when an investment is successful.

5 0

3 years ago

Professional organizations provide reliable nutrition information. which professional organization is the largest organization o

sesenic [268]

Nutrition professionals working in the nutrition education.The American Dietetic Association (ADA) is the organization, this organization of food and nutritional professionals is committed to improving the nation's health. And this is the large organization of food and nutrition professionals.

6 0

3 years ago