1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Morgarella [4.7K]
3 years ago
7

DON Corp. is contemplating the purchase of a machine that will produce net after-tax cash savings of $20,000 per year for five y

ears. At the end of five years, the machine can be sold to realize after-tax cash flows of $5,000. Interest is 12%. Assume the cash flows occur at the end of each year.
Required:
Calculate the total present value of the cash savings.
Business
1 answer:
Allushta [10]3 years ago
3 0

Answer:

$74,932.66

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow from year 1 to 4 = $20,000

Cash flow in year 5 = $25,000

I = 12%

Present value = $74,932.66

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

You might be interested in
A recession within a nation will _________ imports directly, but the impact on the national economy is negative.
katen-ka-za [31]

A recession within a nation will <u>reduce</u> imports directly, but the impact on the national economy is negative.

Monetary policy. monetary policy consists of the steps the central bank of a nation can take in order to regulate the nation's money supply. For example, a central bank might reduce interest rates during a recession in order to make loans more readily available to other banks and thus stimulate economic recovery.

During a recession, the economic struggles, people lose work, companies make fewer sales, and the country's overall economic output decline. The point at which the financial system officially falls right into a recession relies upon an expansion of things.

Monetary policy can offset a downturn due to the fact that decreased interest rates reduce consumers' cost of borrowing to shop for large-ticket objects such as cars or homes. For firms, the economic policy also can reduce the value of an investment.

Learn more about Monetary policy here brainly.com/question/13926715

#SPJ4

4 0
2 years ago
Which of the following refers to a process of developing distribution​ objectives, evaluating internal and external environmenta
german

Answer:

The correct answer is E. Distribution planning.

Explanation:

Distribution planning refers to the development of objectives from production to putting the product on the counter. This process includes the entire chain from when the raw material to produce is entered, and the logistics necessary to transport the product to the final supplier. This process must evaluate external and internal problems in order to make it as expeditious as possible and the times are met in order to avoid product shortages.

5 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t
Roman55 [17]

Answer and Explanation:

The preparation of the income statement is presented below:

<u>Particulars        Amount </u>

Revenue           $160,000

Less:

Rental Costs       $30,000

Variable Costs     $50,000

Depreciation       $10,000

Profit before tax $70,000

Tax at 35%     -$24,500

Net Income     $45,500

Hence, the net income is $45,500

6 0
2 years ago
Spokes Bikes has 18 different bicycle models that can be created in over 2 million combinations. Each combination is designed to
vampirchik [111]

Answer:

Correct option is (C)

Explanation:

Mass customization refers to manufacturing products suited for individual needs and preferences at the same time producing huge amount of products at low cost offering value to customers.

Customers are allowed to make modifications as per their requirements in the basic model offered by the organization. So customer is free to pick the color, design and model of their choice.

Spokes bikes is therefore using mass customization.

3 0
3 years ago
Plzzzz ill give 25 points <br>asap plzzz I luv u for who ever does it​
Alika [10]

Answer:

can you please tell me the question because it's kind of blurry and I will be glad to answer it if I can

4 0
2 years ago
Other questions:
  • Why my questions never get answer. I feel unappreciated. Going to brainly x'd x'd
    9·1 answer
  • During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021,
    9·1 answer
  • Partner Industries sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $15 per unit when antic
    15·2 answers
  • Tesla wanted to break into the electric vehicle (EV) marketplace with a luxury sports model. At that time, economic value was mo
    13·1 answer
  • Sales Tax Transactions Journalize the entries to record the following selected transactions: a. Sold $62,800 of merchandise on a
    9·1 answer
  • The owner of bobcats r us paid his personal mastercard bill using a company check. the correct entry to record the transaction i
    6·2 answers
  • Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15
    13·1 answer
  • You describe your interview subject’s perspective on the value of education, and you compare those ideas to the views of other p
    14·1 answer
  • The following is the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections fro
    11·1 answer
  • Smart tips for selling to business customers include all the following except: a. Emphasize various benefits that meet the diffe
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!