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
QveST [7]
3 years ago
5

Odeletta Corporation is considering an investment of $ 506 comma 000 in a land development project. The investment will yield ca

sh inflows of $ 212 comma 000 per year for five years. The company uses a discount rate of​ 9%. What is the net present value of the​ investment? Present value of an ordinary annuity of​ $1: ​8% ​9% ​10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.24 3.17 5 3.993 3.89 3.791
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
5 0

Answer:

$318,680

Explanation:

initial investment ($506,000)

cash flow year 1 = $212,000

cash flow year 2 = $212,000

cash flow year 3 = $212,000

cash flow year 4 = $212,000

cash flow year 5 = $212,000

discount rate 9%

present value of an ordinary annuity for 5 years and 9% discount rate = 3.89

the net present value = (yearly cash flow x annuity value) - initial investment = ($212,000 x 3.89) -$506,000 = $824,680 - $506,000 = $318,680

The net present value of an investment equals the difference between the present value of the cash flows generated by the investment minus the initial cost of the investment.

You might be interested in
According to the mini-lecture and text, ___ % of a manufacturer's profit comes from repeat purchases and as a result this is why
r-ruslan [8.4K]

<u>90% </u>of a manufacturer's profit and income comes from repeated purchases from returning customers.

<h3>What is Lifetime Customer Value (LCV)?</h3>

Lifetime Customer Value is the entire contribution of a customer to a brand or business enterprise over the course of their relationship.

It's an essential metric since keeping returning customers requires less than acquiring new ones, thus improving the value of your existing customers is an excellent strategy to generate growth and profit.

Therefore, we can conclude that <u>90% </u>of a manufacturer's profit and income comes from repeated purchases from returning customers.

Learn more about Lifetime customer value here:

brainly.com/question/26483324

8 0
3 years ago
Garrett Company provided the following information:
Shalnov [3]

Answer:

Correct option is C

<u>Overall operating income will decrease by $25,000.</u>

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

8 0
3 years ago
Chevelle, Inc. has sales of $487,000 and costs of $394,500. The depreciation expense is $43,800. Interest paid equals $18,200 an
laiz [17]

Answer:

The correct answer is $13,325.

Explanation:

According to the scenario, the given data are as follows:

Total sales = $487,000

Cost of goods sold = $394,500

Depreciation expense = $43,800

Interest paid = $18,200

dividends paid = $6,500

Tax rate = 35%

so, first we calculate net income.

Net income = ( Total sales - Cost of goods sold - Depreciation expense - Interest paid ) - 35%

= ($487,000 - $394,000 - $43,800 - $18200  ) - 35%

= $30,500 - $10,675

= $19,825

Addition to retained earnings = Net income - Dividends Paid

= $19,825 - $6,500

= $13,325

Hence, the correct answer is $13,325.

6 0
3 years ago
What is the source of income for the four sectors of the economy
OlgaM077 [116]

<u>Answer</u>:

Consumer, Investment, Government, and Foreign.

<u></u>

<u>Explanation</u>:

Consumer:

Personal disposable income

Investment:

Retained earnings

Government:

Indirect business taxes, Corporate income taxes, Social Security contributions, and Individual Income taxes.

Foreign:

No specified source of income but is instead represented by the difference in goods sent abroad and goods purchased from abroad.

Hope this helps! Have a great day my loves<3      

                                                                                           <u>-Heiwa</u>

5 0
2 years ago
When production costs rise,a.the short-run aggregate supply curve shifts to the right. b.the short-run aggregate supply curve sh
solong [7]

Answer:

The short-run aggregate supply curve shifts to the left.

Explanation:

A shift in aggregate supply can be as a result of many factors such as changes in the size and quality of labor, technological innovations, an increase in wages, an increase in the cost of production, changes in inflation and changes in the amount of producers taxes.

Increases in the price of such inputs could lead to a shift of the SRAS curve to the left, which means that at each given price level for outputs, a higher price for inputs will hinder production.

8 0
3 years ago
Read 2 more answers
Other questions:
  • A(n) ________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.
    11·1 answer
  • Juan and violet have shared an office for two weeks. neither of them spends time organizing or cleaning the office so it is beco
    14·1 answer
  • In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 650 uni
    9·1 answer
  • Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p
    12·1 answer
  • _______________ also includes ensuring that you are effectively providing this benefit service (be it feeding the homeless, prot
    5·1 answer
  • Process further or sell Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may
    9·1 answer
  • Chenault was a celebrity at American Express. He was dominant and self-confident, and created an aura of competence and success
    11·1 answer
  • Kinh tê chính trị mục đích của công thức k=c+v
    11·1 answer
  • How do lines 345-365 illustrate the Cyclops’ societal failure?
    11·1 answer
  • 52. With respect to the bank reconciliation which is correct?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!