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
morpeh [17]
3 years ago
5

Space Fuel Inc. is considering establishing a new propellant depot to provide space vehicles a refueling point in their trek to

Mars. If placed in a LaGrange point, the depot could save $50,000K annually. The depot can be constructed for $200,000K today and will be used for a period of 10 years. It has a salvage value of $10,000K at the end of its useful life. The new depot will require an annual maintenance cost of $9,000K. Capital financing is available at 4.78% per semiannual period compounded monthly. Find the present worth.
Business
1 answer:
schepotkina [342]3 years ago
7 0

Answer:

NPV = $55,894.45

Explanation:

the initial outlay of the project is $200,000

the salvage value is $10,000

useful life 10 years

annual costs $9,000

annual savings $50,000

luckily there are no taxes in space

we must determine the effective interest rate in order to be able to discount the future cash flows

(1 + 0.0478/6)¹² - 1 = 9.99%

the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000

net cash flow for year 10 = $41,000 + $10,000 = $51,000

using a financial calculator, the NPV = $55,894.45

You might be interested in
A key to positioning a product or brand effectively is discovering the perceptions of its potential customers. In determining it
Masja [62]

Answer:discover where the company's product or brand is on these attributes in the minds of potential customers.

Explanation: The position of a product in the minds of Customers or consumers is a vital factor in determining the sales that can be generated from the product. The perception of potential customers is necessary,so a good marketer or business organisations must ensure that it works to improve upon the perception of its customers concerning it's products or services.

discovering where the company's product or brand is on these attributes in the minds of potential customers is one of the four steps required.

8 0
3 years ago
A process cost system would be used for all of the following products except computer chips. motion pictures. chemicals. soft dr
denpristay [2]

One thing that a process cost system cannot be used for from the given options is Motion pictures.

<h3>What is process costing?</h3>

This is a method of allocating cost that is based on the same item being mass-produced such that there is no discernable difference between the goods that were produced.

Motion pictures cannot be mass produced which is why they cannot use process costing, Every motion picture is unique and so something more specific is needed to apportion their cost.

Find out more on process costing at brainly.com/question/17129908

#SPJ1

5 0
1 year ago
hich of the following statement is CORRECT? A. A sunk cost is any cost that must be expended to complete a project and bring it
lbvjy [14]

Answer

D. A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.

Explanation:

As per the data given in the question,

Option (D) is correct among the given statements. A sunk cost is that cost which was occurred and expended in the past and if firm decides to do not go ahead, it can not be recovered.

For illustration - Think about the cost incurred to find out the feasibility of the project. Though in past firm was agree with the project but now even if the firm decides not to the project, this cost can not be recovered.

8 0
3 years ago
If the nominal interest rate is 4.7% and the inflation rate is 3.4%, what is the real interest rate?
jeyben [28]

Answer:

1.3%

Explanation:

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.

real interest rate=nominal interest rate-inflation rate

nominal interest rate=4.7%

inflation rate= 3.4%

real interest rate=4.7%-3.4%

real interest rate=1.3%

According to this, the answer is that the real interest rate is 1.3%.

3 0
3 years ago
The _ is the financial statement describing a firms yearly cash receipts and cash payments
erastova [34]
Statement of cash flows....
6 0
3 years ago
Other questions:
  • against the foregoing background obtain any road road traffic policy and demonstrate your understanding of that particular polic
    10·1 answer
  • Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm perfo
    14·1 answer
  • Michael works as a financial advisor in a doctor’s office. The two organizations that Michael most likely belongs to are the AFP
    10·2 answers
  • The commercial banking system has excess reserves of $200,000. Then new loans of $800,000 are subsequently made, and the system
    15·1 answer
  • Due to Coronavirus, all of the stock markets and businesses and our overall economy is failing, but companies that are producing
    15·2 answers
  • Can South Africa afford to have a totally free trade with the rest of the world?
    7·2 answers
  • In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has
    9·1 answer
  • During its first year of operations, JKL Company paid $11,065 for direct materials and $11,200 for production workers' wages. Le
    15·1 answer
  • considered the first and lowest level of stocks. common stock 2. probably the safest investment; corporations can withstand a do
    11·1 answer
  • Relationship between short and long run in Philips curve
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!