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kipiarov [429]
3 years ago
8

The following information concerning a proposed capital budgeting project has been provided by Jochum Corporation: Click here to

view Exhibit 13B-1 to determine the appropriate discount factor(s) using tables. Investment required in equipment $ 212,000 Salvage value of equipment $ 0 Working capital requirement $ 34,000 Annual sales $ 670,000 Annual cash operating expenses $ 408,000 One-time renovation expense in year 3 $ 70,000 The expected life of the project is 4 years. The income tax rate is 30%. The after-tax discount rate is 11%. The company uses straight-line depreciation on all equipment and the annual depreciation expense would be $53,000. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
The net present value of the project is closest to: (Round discount factor(s) to 3 decimal places, do not round intermediate calculations and round final answer to the nearest dollar amount.)

$170,803

$307,450

$186,067

$299,050
Business
1 answer:
Mekhanik [1.2K]3 years ago
3 0

Answer:

Correct option  $170,803

Explanation:

Consider the following calculation

NPV = -168000 - 24000 + ((640000 - 466000 - 42000)*(1 - .35)+42000)*PVAF(12%, 4 years) - 55000*PVF(12%, 3 year) + 24000*PVF (12%, 4 year)

= -192000 + 127800*3.03735 - 55000*.71178 + 24000*.6355

= 172.277

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Anon25 [30]

Answer:

Subcultural

Explanation:

Consumer behaviour refers to how individuals make decisions on ways to spend their available resources, time, money, and effort on variety of items.

A society is composed of several sub-cultures in which iindividuals can identify themselves. A Subculture is a group of people within a culture who are different from the dominant culture but have something in common with one another such as common interests, religions, ethnic backgrounds.

Culture is considered an external factor that influences consumer behavior. Since different cultures have different values, they will have different buying habits. A typical example is the Jewish people that purchase about 63% of bagels that is sold in New York City.

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