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spayn [35]
3 years ago
9

Net Present Value Method

Business
1 answer:
arsen [322]3 years ago
4 0

Answer:

year               net cash flow

0                     -$150,000

1                        $80,000

2                       $65,000

3                       $50,000

4                       $40,000

A) NPV = -$150,000 + ($80,000 x .87) + ($65,000 x .756) + ($50,000 x .658) + ($40,000 x .572) = -$150,000 + $69,600 + $49,140 + $32,900 + $22,880 = -$150,000 + $174,520 = $24,520

B) Yes , because the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 15%. Since the NPV is positive ($24,520), it means that the cash inflows are higher than the cash outflows when we use a 15% discount rate.

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Jane Hernandez owns and operates a women’s clothing shop. Her product mix
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Answer: Our group will suggest strategy of Contraction of product mix

<u>Explanation:</u>

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8 0
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ryzh [129]

Answer:

The Question is Incomplete; Full Question is as follows;

Using variable​ costing, what is the contribution margin for last​ year?

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<em>Keep in mind that; </em><em>Set or Fixed expenses and overhead costs are not taken into account when trying to calculate the contribution margin.</em>

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Answer:

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