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a_sh-v [17]
3 years ago
8

Joanette, Inc., is considering the purchase of a machine that would cost $620,000 and would last for 10 years, at the end of whi

ch, the machine would have a salvage value of $62,000. The machine would reduce labor and other costs by $122,000 per year. Additional working capital of $8,000 would be needed immediately, all of which would be recovered at the end of 10 years. The company requires a minimum pretax return of 16% on all investment projects.
Required: Determine the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Business
1 answer:
daser333 [38]3 years ago
3 0

Answer:

$22,484

Explanation:

The computation of net present value of the project is shown below:-

Net present value = Present value of cash inflow - Present value of cash outflow

Net present value = Other cost reduced amount × PVIFA factor at 16% for 10 years + Additional working capital × Discount factor for 10th year + Salvage value × Discount factor for 10th year -  Salvage value + Discount factor for 10th year × 1)

= $122,000 × 4.83322 + $8,000 × 0.2266 + $62,000 × 0.2266 - $62,000 + $8,000 × 1)

= $589,654 + $15,862 - $628,000

= $22,484

Therefore for computing the net present value we simply applied the above formula.

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Answer:   I heard its the second option, I cannot verify that. But i do have the awnsers to every question for the final in Entrepreneruship, Its on quizlet labeled Entrepreneurship. 37 terms.

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Samuel is training to be an electrician by working alongside experienced electricians. After one more year of successful trainin
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Answer: It is true that Samuel is taking part in an apprenticeship program.

Explanation:

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4 years ago
Heavy Metal Corporation is expected to generate the following free cash flows over the next five​ years: LOADING.... ​Thereafter
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Answer:

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2 years ago
Fosnight Enterprises prepared the following sales​ budget: Month Budgeted Sales March April May June The expected gross profit r
kvv77 [185]

The question is incomplete as the figures are missing. The complete question is,

Fosnight Enterprises prepared the following sales​ budget:

Month       Budgeted Sales

March         $6,000

April            $13,000

May             $11,000

June            $20,000

The expected gross profit rate is  20​% and the inventory at the end of February was  $7,000.  Desired inventory levels at the end of the month are  30​%  of the next ​month's cost of goods sold.  What are the total purchases budgeted for May?

Answer:

Purchases - May = $10960

Explanation:

To calculate the total value of purchases that are budgeted for May, we first need to calculate the cost of goods sold and the opening and closing inventory for May.

As the gross profit margin is 20%, the cost of goods sold will be 80% of sales.

Cost of goods sold for May = 0.8 * 11000 = $8800

Cost of goods sold for June = 0.8 * 20000 = $16000

Opening inventory - May = 8800 * 0.3  = $2640

Closing Inventory - May = 16000 * 0.3  = $4800

Purchases = Closing Inventory + Cost of Goods Sold for the month - Opening Inventory

Purchases - May = 4800 + 8800 - 2640

Purchases - May = $10960

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Answer:

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Comma is Basically a 1 second pause after the word so when you say the above mentioned sentence then a one second pause is required after the word rain..

Hope I Helped

Pls mark as Brainliest.

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