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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.

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In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Lerok [7]

Answer:

$16250

Explanation:

For every 200 hours of needed work, $2500 must be paid. We divide the amount of hours needed for 200 to obtain the amount of times that $2500 are paid. Multiplying this number by $2500 we obtain the total expense gor salaried employees.

frac{{1300}{200}}x2500

6 0
3 years ago
Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct
FinnZ [79.3K]

Answer:

Total materials variance = (Actual quantity * Actual price) - (Standard quantity * Standard price)

= 2,850 - (230 * 14.4)

= 462 (Favourable)

Materials price variance = (Standard price - Actual price) * Actual quantity

= [1.8 - (2,850/1,500)] * 1,500

= 150 Unfavourable

Materials quantity variance = (Standard quantity - Actual quantity) * Standard price

= [(230 * 8) - 1,500] * 1.8

= 612 Favourable

Total labour variance = (Actual hours * Actual rate) - (Standard hours * Standard rate)

= 19,458 - (230 * 84)

= 138 Unfavourable

Labour price variance = (Standard rate - Actual rate) *  Actual hours

= [14 - (19,458/1,410)] * 1,410

= 282 Favourable

Labour quantity variance = (Standard hours - Actual hours) * Standard rate

= [(230 * 6) - 1,410] * 14

= 420 Unfavourable

6 0
3 years ago
For people who live near a bus route, a subway station, or a commuter rail line, public transportation provides a substitute to
Tom [10]

Answer: Positive.

Explanation:

Suppose there are two related goods, i.e, Good A and Good B.

Cross price elasticity of demand refers to the responsiveness of demand for Good A if there is a change in the price of its related good, i.e, Good B.

Now, we are talking about gasoline and public transportation, suppose if there is increase in the price of gasoline then it will be costlier for the people to drive their own cars, as a result demand for public transportation increases.

There is a positive relationship between the gasoline and public transportation.

Hence, cross-price elasticity of demand between gasoline and public transportation is Positive.

5 0
3 years ago
A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occup
Mariulka [41]

Answer:

The answer is non-compete agreement

7 0
2 years ago
Your portfolio has three asset classes. U.S. government​ T-bills account for 47​% of the​ portfolio, large-company stocks consti
Katena32 [7]

Answer:

Expected return of the​ portfolio = 8.57%

Explanation:

The expected return of the portfolio is the weighted average return of all assets in that portfolio, which is calculated as below:

The expected return of the portfolio = (Weight of U.S. government​ T-bills x Return of U.S. government​ T-bills) + (Weight of large-company stocks x Return of large-company stocks) +  (Weight of small-company stocks x Return of small-company stocks)

= 47% x 4.08% + 38% x 11.38% + 15% x 15.53% = 8.57%

3 0
3 years ago
Read 2 more answers
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