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
almond37 [142]
3 years ago
15

A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be

$274,000. The net aftertax salvage value of $15,000 will be received at the end of the project. The project requires $61,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 10 percent? corporate finance
Business
1 answer:
pashok25 [27]3 years ago
3 0

Answer:

     NPV  =$ 60,311.80

Explanation:

<em>The net present value (NPV) of a project is the present value of cash inflow  less the present value of cash outflow of the project.</em>

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

                                                  0                  1                   2                 3          

Operating cash flow                                136,000     136,000    136,000

Initial cost                              (274,000)

Working capital                     (61,000 )                                          61,000

Salvage value                        <u>               </u>    <u>             </u>      <u>           </u>      1<u>5000  </u>              

Net cashflow                     <u> (335,000)  136,000      136,000      212,000.</u>

PV  inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

       =  395,311.80

NPV =395,311.80 -335,000

       =$ 60,311.80

You might be interested in
The gross requirements of a given component part are determined from ______________________.
il63 [147K]

Answer: The correct answer is "c) planned orders of the parent".

Explanation: The gross requirements of a given component part are determined from <u>planned orders of the parent</u>

Without the release of planned orders from immediate parents, the gross requirements of a given component part could not be determined.

5 0
3 years ago
For many years there have been efforts to organize teaching assistants on college campuses and form a union. often these efforts
anygoal [31]
Social movement theory.  Due to lack of resources, it is hard for these groups to form a union. To form a union and have a successful social movement, there needs to be an abundance of resources to successfully create a union. A union is formed when a group of workers want to protect their rights in the interest of labor.
6 0
3 years ago
The priority of the product in agile is more significant than in traditional project management, as the outcome, or product, wil
larisa [96]

Answer and Explanation:

True

3 0
3 years ago
Consider a call option on an asset with an exercise price of $100, a put option on that same asset with an exercise price of $10
zubka84 [21]

Answer: The values are missing below are the values

a. $105

b. $95

answer :

a) $5

b) -$5 ( loss )  

Explanation:

From the perspective of the long position for each of the two options  upon expiration

a) For $105

for the long position ( long call ) since the expired price > than the exercise price

i.e. $105 > $100 the profit = $105 - $100 = $5

b) For $95

For the long position ( long call ) since the expired price < than the exercise price

i.e. $95 < $100 the profit = $95 - $100 =  - $5  ( a loss is incurred )

5 0
2 years ago
On December 31, Year 1, a publicly traded entity identified a tax position that will result in a $100,000 tax benefit that quali
Zielflug [23.3K]

Answer:

C $30,000

Explanation:

. A $30,000 result has a 35 percent chance of occurring, but the entity cumulatively has a 55 percent chance of receiving at least a $30,000 tax benefit. As a result, $30,000 is the appropriate amount to recognize.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Sarasota Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first y
    10·1 answer
  • Happy Monkey Manufacturing currently has 20,000 shares of common stock outstanding. Its management believes that its current sto
    7·1 answer
  • The $1,000 par value bonds of uptown tours have a coupon rate of 6.5 and a current price quote of 101.23. what is the current yi
    7·1 answer
  • A person with a poor self-concept is more likely to be hired for a position, because they are easier to “mould”.
    6·1 answer
  • Along with four other owners of small retail stores, Scott was invited to participate in a(n) ______________ where the researche
    14·1 answer
  • The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.Corporate headquarte
    10·1 answer
  • Practice Question 25 Which one of the following is an effective method of evaluating a cost center? Compare actual total costs w
    13·2 answers
  • Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received
    12·1 answer
  • Which functional area in a retail store usually collects, stores, and processes data and information used in the checkout proces
    9·1 answer
  • What is the central problem with relativism
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!