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Zigmanuir [339]
3 years ago
6

Apricot Corporation has decided to buy a new glazing machine for its factory. The machine's cost is $50,000 and the expected inc

ome from the machine for next 3 years are $19,000, $25,000 and $30,000. If the machine's expected rate of return is 8%, then its net present value is _____.
Business
1 answer:
Kisachek [45]3 years ago
5 0

Answer:

$12,841.03

Explanation:

Given:

Initial Investment = $50,000

1st year expected income = $19,000

2nd year expected income = $25,000

3rd year expected income = $30,000

Expected rate of return = 8% = 8/100 = 0.08

Net present value = ?

Computation of net present value:

Net present value = C0 + \frac{C1}{(1+r)^1}+ \frac{C2}{(1+r)^2}+ \frac{C3}{(1+r)^3}

50,000 + \frac{19,000}{(1+0.08)^1}+ \frac{25,000}{(1+0.08)^2}+ \frac{30,000}{(1+0.08)^3}\\\\50,000 + \frac{19,000}{(1.08)^1}+ \frac{25,000}{(1.08)^2}+ \frac{30,000}{(1.08)^3}\\\\50,000 + \frac{19,000}{(1.08)}+ \frac{25,000}{(1.1664)}+ \frac{30,000}{(1.259712)}\\\\50,000 + 17,592.5926+ 21,433.4705+ 23,814.9672\\\\112,841.03\\\\

Net present value = $112,841.03

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Answer:

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Hence, it is the right answer.

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faltersainse [42]

Over the last several decades, the United States has usually had a trade deficit.

When the U.S. 2008 recession began, the trade deficit increased.

When net exports increase, GDP increases.

Trade deficit is when the import of an economy is greater than the export of the economy. Import are goods that are bought from foreign countries. Export are goods that are sold to foreign countries. As at August 2021, trade deficit in the United States was  $73.3 billion. This is higher than the forecasted amount of $70.5 billion.

During the 2008 recession, trade deficit increased by 3% to $920.7 billion.  One of the reasons for this was the increase in the price of crude oil which is a major consistent of import of the United States.

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Which of the following statements regarding direct selling is most accurate? Multiple Choice Unlike other forms of nonstore reta
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Direct selling succeeds because it provides customers with a social shopping experience.

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SVETLANKA909090 [29]

Answer:

) $275,000

Explanation:

The charge per square foot is $5.

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=275ft x 200ft

=55,000 square ft.

The total cost of the annual rent is

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=$275,000

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2 years ago
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