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Travka [436]
3 years ago
8

SAP Inc. received a $1.5 million grant under its Small Business Innovation program. SAP invested the grant money and developed a

system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends $500,000 a year on storm water clean-up efforts. If SAP is able to sign up and retain four shipyards in the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for SAP is 14% per year? Assume a cost of operations and other costs for SAP equal 50% of revenue.A) $4.80 million
B) $5.64 million
C) $4.51 millionD) $5.93 million
Business
1 answer:
MrRa [10]3 years ago
7 0

Answer:

B) $5.64 million

Explanation:

SAP inc can receive $500,000/ shipyard and 4 shipyards a year yields gross cash flows of  500*4 = $2,000,000. Half of these are costs that give us a Net cash flow of $1,000,000/ year.

Since there is no maturity of the project we calculate present value of cash flow with the following formula

PV of cash flow = 1,000,000/0.14 = $7.14 million rounded off

NPV = 7.14-1.5 = 5.64 million

Hope that helps.

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The price elasticity of demand for a particular cancer drug is zero and the price elasticity of supply is 0.50. If a $1 excise t
Ede4ka [16]

Answer:

$1 or 100% of the tax

Explanation:

When the price elasticity of demand is 0, it means that the good or service will be purchased regardless of its cost. Very few things have such a low price elasticity, and the fact that this is drug for treating cancer is the reason why that happens. Anyone that can purchase a drug that will keep you alive, will do so as long as you have enough money to do so. Another good with a very low price elasticity, but not 0, is gasoline with a 0.02 to 0.04, and gasoline is a basic necessity also.

The curve for a perfectly inelastic good is vertical. So any increase in taxes will be paid by the customers.

7 0
2 years ago
Where do you think the biggest hole is in the registration statement?
Alex17521 [72]
In the United States, a registration statement is a set of documents, including a prospectus, which a company must file with the U.S. Securities and Exchange Commission before it proceeds with a public offering.

Not that sure though
Best luck with your studying
8 0
2 years ago
The lowest tier of the federal court system is the:
igomit [66]
I believe the lowest tier is District Court.
5 0
2 years ago
In ________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.
belka [17]

Answer:

Multi-level marketing.

Explanation:

A business organization that is run with multi-level marketing strategy typically has 3 sources of income:

- The amount of money that each person have to pay in order to gain the membership status.

- The amount of money that memberships owners have to pay to be a distributor of their product

- The amount of money that they get from the sales of their product.

Most multi-level marketing companies will provide their members with some sort of 'Reward' if they managed to convert other people into purchasing memberships to organization. So, the more their members convert other people, the more wealthy that members will be. This will create a hierarchy like within an organization where the members who bring the most memberships place at the top of the hierarchy.  

5 0
2 years ago
a company has a retained earning statement that shows that it did not pay a dividend to shareholders last year. this may lead a
kumpel [21]

According to a company's retained earning statement, it did not distribute a dividend to shareholders last year. A potential investor might draw the conclusion from this that management might be concentrating on a growth strategy.

<h3>Enlist the types of dividend.</h3>

In general, a dividend is viewed as a cash payment made to the owners of firm stock.

  • Of all the dividend forms, cash dividends are by far the most prevalent. The board of directors decides to pay a certain dividend amount in cash to shareholders who held the company's stock on the day of declaration.
  • A stock dividend is the free distribution of common shares by a firm to its common shareholders.
  • Scrip dividends, which are effectively promissory notes (which may or may not include interest) to pay shareholders at a future date, are sometimes issued by companies that may not have enough cash on hand to pay dividends in the near future. A note payable is created by this dividend.
  • A liquidation dividend is declared when the board of directors wants to return the capital that shareholders initially invested as a dividend. This action could signal that the company will eventually close.
  • An organization may choose to distribute a non-cash dividend to investors rather than paying out in cash or stock. Record this distribution at the assets that were distributed's fair market value. The fair market value of the assets is probably going to differ significantly from their book value, thus the corporation will probably record the difference as a gain or loss. This accounting rule may occasionally cause a company to purposefully pay property dividends in an effort to change its reported and/or taxed income.

To know more about, dividend, visit :

brainly.com/question/2960815

#SPJ4

4 0
1 year ago
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