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scoundrel [369]
3 years ago
6

Vextra corporation is considering the purchase of new equipment costing $44,500. the projected annual cash inflow is $12,900, to

be received at the end of each year. the machine has a useful life of 4 years and no salvage value. vextra requires a 12% return on its investments. the present value of an annuity of $1 for different periods follows: periods 12% 1 0.8929 2 1.6901 3 2.4018 4 3.0373 what is the net present value of the machine?
Business
2 answers:
Fed [463]3 years ago
3 0
Net present value is
Present value of annual cash flows-project investment

Net present value
12,900×3.0373−44,500=(5,319)
Mashutka [201]3 years ago
3 0

Answer: ($5,318.83)

Explanation:

Net present value is the difference between the present value of cash inflows and the present value of cash outflows resulting from the project.

<u>Types of Cash flows</u>

1. Annuity: where payments last for a certain period

2. Perpetuity: whereas for perpetuity, they continue indefinitely

The only difference between annuity and perpetuity is the ending period.

In case of Annuity, Present value of cash inflows will be calculated as follows:

Present value = Annual Cash Inflow x Relevant Annuity Factor

                       = $12,900 x 3.0373

                       = $39,181.17

Net Present Value = Present Value of Cash Inflow - Initial Investment

                               = $39,181.17 - $44,500

                               = (5,318.83)

If present value of cash inflow is less than present value of cash outflow, the net present value is said to be negative and the investment proposal is rejected.

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Which workplace trait means fulfilling your commitments in time or in advance?
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I believe the answer is Time management
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Both the Onus ferry operator in the monopoly market and each of the Yuri ferry operators in the perfectly competitive market wil
Lisa [10]

Answer: Please refer to Explanation.

Explanation:

Monopoly.

The 2 reasons why the monopoly’s marginal revenue will always be less than its price are;

a) Even though Monopolies have very large influence on the prices of goods and services they offer, for a Monopoly to sell more goods, they generally have to lower their prices. This will lead to a situation where Marginal Revenue, which is the additional revenue made per additional unit sold will be less than Price because additional revenue for a new unit will be less than the last one because prices are dropped .

b) A Monopoly's demand schedule is downward sloping. This means that demand rises as prices drop. As prices drop therefore, more goods will be sold but the marginal revenue will be less because prices had to be dropped to get an additional unit to be sold. That unit therefore will bring in less revenue than the last unit.

Perfectly Competitive Market

In such a market, the seller is a Price Taker. This means that sellers in this market do not sell at a price that they want but rather at a price the market has established to be the Equilibrium. This is because of the high competition in the market. Since they are all selling at the same price, this means that every additional revenue they get is the same as the price the market charges. This means that Price equals Marginal Revenue in this market.

3 0
3 years ago
Future Value At age 20 you invest $1,000 that earns 7 percent each year. At age 30 you invest $1,000 that earns 10 percent per y
agasfer [191]

Answer:

In the case of age 30, there will be more money at the age of 60

Explanation:

When person start investing at the age of 20 then total year till 60 years age is  = 40 years.

Interest rate (r ) = 7 percent or 0.07.

Investment amount (Present value) = $1000

Now the total amount at the age of 60 years is calculated below.

Total \ amount = Present \ value (1 + r)^{n} \\= 1000 ( 1 + 0.07 ) ^{40}\\= 14974.4578 \ dollars

Now calculate the total amount at the age of 60 years when he invest at the age of 30 and earns interest rate 10 percent. Now the number of years is 30.

Total \ amount = Present \ value (1 + r)^{n} \\= 1000 ( 1 + 0.1 ) ^{30}\\= 17449.4023 \ dollars

7 0
3 years ago
When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginni
yulyashka [42]

Incomplete question. The full question read;

Malcolm has several receipts from recent transactions that he entered into his records. The receipts include an ATM receipt for an $80.00 deposit, a grocery store receipt for $25.50, and a paycheck deposit slip for $650.00.

When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginning balance, what should his correct balance be?

Answer:

<u>$704.50</u>

Explanation:

First, we need to note which transactions are credit transactions, and which is a debit transaction. <em>Remember</em>, a<u> credit transaction</u> basically means a transaction that brings money into your account, while the latter is a transaction that takes money out of your account.

Malcolm's credit transactions:

  • ATM receipt for an $80.00 deposit
  • paycheck deposit slip for $650.00

Total: <u>$730.</u>

Malcolm's debit transactions:

  • grocery store receipt for $25.50

Total: $25.50

Substracting total debit transactions from credit transactions, Malcolm's correct balance would be = $704.50 ($730-$25.50).

8 0
3 years ago
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