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
kompoz [17]
3 years ago
6

The management of Salem Corporation is considering the purchase of equipment costing $109,000, which has an estimated life of 3

years and no salvage value. The net after tax cash flow from the project for each of the three years is expected to be $45,000. The company's cost of capital is 10%. Compute the net present value of the equipment. (Present value of $1 due in three years, discounted at 10%, is 0.751; present value of $1 received annually for three years, discounted at 10%, is 2.487).
A. $3,616.
B. $2,548.
C. $2,915.
D. $3,213.
Business
1 answer:
Andrej [43]3 years ago
8 0

Answer:

Net present value of the equipment =  $2,915

Explanation:

Given:

Equipment cost = $109,000

Estimated life = 3 years

Annual cash flow = $45,000

Discounted rate = 10% (3 year discount factor = 2.487)

Find:

Net present value of the equipment = ?

Computation:

Net present value of the equipment = Present value of Annual cash flow - Equipment cost

Net present value of the equipment =  [Annual cash flow × discount factor] - Equipment cost

Net present value of the equipment =  [$45,000 × 2.487] - $109,000

Net present value of the equipment =  $111,915 - $109,000

Net present value of the equipment =  $2,915

You might be interested in
Number sixxxxxxxxxxxx
Licemer1 [7]

Answer:

bachelor degree in film

5 0
3 years ago
Read 2 more answers
A(n) ____ model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations perfor
Svet_ta [14]
A(n) (transection)  model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations performed by the application.(transection
7 0
3 years ago
59. What is a contingency? a. An existing situation where certainty exists as to a gain or loss that will be resolved when one o
Vera_Pavlovna [14]

Answer:

Correct option is D.

Explanation: A contingency is an existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur.

In business, a contingency plan is a plan or course of action a company would implement if an unexpected event occurs. Basically, what this means is that a company is preparing for any outcome.

6 0
3 years ago
The price (P) of designer jeans is affected by the supply (S) and the demand (D).
monitta
The price of designer jeans would likely increase if its demand increases and there is no changes in supply.
5 0
3 years ago
Read 2 more answers
Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank em
DiKsa [7]

Answer:

Westbank Real Estate, Inc. and Hardell Lumber Co.

2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)

3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PERFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)

4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.

5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)

6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.

7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)

8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)

9. Who signed the emails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)

10. What type of signature must be on an email in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)

11. Does the electronic memorandum have the parties' typed names? (YES/ NO)

12. Does the electronic memorandum describe the property involved?(YES/ NO)

13. Is it likely a court would find that the electronic memorandum satisfied the statute of frauds? (YES/ NO)

14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.

Explanation:

The memoranda exchanged between Westbank Real Estate and Hardell Lumber Co provides the evidence of their oral contract. The statute of fraud covers most oral contracts, especially those involving real property or sale of land.  It is important to note that land includes all its permanent attachments.

5 0
3 years ago
Other questions:
  • What is the best way to finance your own business?
    7·1 answer
  • One way that criminal law differs from civil law is that it: provides remedies for violations of private rights. must yield a un
    11·1 answer
  • Individuals who wait until they turn 65 to apply for medicare will cause a delay in the start of part b coverage, because they w
    5·1 answer
  • Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops,
    10·1 answer
  • Which of the following is an example of a shortage?
    10·1 answer
  • The government of Diamza recently passed a law making it mandatory for any foreign company that wants to do business in its coun
    15·1 answer
  • CompuTop Company sells toy laptop computers for $30 each. If the variable cost for each laptop is $20 and fixed costs total $25,
    8·1 answer
  • What was the value proposition of Maggi in India which made it a success but not in Pakistan? What is the better value propositi
    10·2 answers
  • For accounting purposes, postdated checks (checks payable in the future) are considered to be
    10·1 answer
  • What results when work seeps into non-work time?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!