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3 years ago

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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Which of the following serves as an incentive for entrepreneurs in a market economy?

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Answer:

Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.

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2 years ago

Employees with _____, in which work output is exchanged back and forth among individuals, should be organized into teams to faci

Andrew [12]

Answer: Reciprocal Interdependence.

Explanation:

Reciprocal Interdependence is a working situation in which the output of a department of an organization forms the direct input used by another department in the same organization.

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2 years ago

The following information is available for Blossom Company:

Aleonysh [2.5K]

Answer:

Total Assets = $124,510

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8 0

3 years ago

Two eastern European countries formed a free trade agreement. As a result, one of the countries that used to produce its own pla

Aleonysh [2.5K]

Answer:

Trade creation

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There is a shift from high cost producers to low cost producers as a result of trade agreement between the two nations.

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3 years ago

It seems hard to justify spending $4.00 for a compact fluorescent lightbulb when an ordinary incandescent lightbulb costs 50 ¢.

frosja888 [35]

Answer:

to obtain 10,000 hours of light you would need:

option 1)

10 incandescent light bulbs costing $0.50 each = $5

this incandescent light bulbs will consume 60 x 10,000 = 60,000 watts or 60 kWh = 60 x $0.10 = $6 in electricity

total costs using incandescent light bulbs = $5 + $6 = $11

option 2)

1 fluorescent light bulb = $4

this fluorescent light bulb will consume 15 x 10,000 = 15,000 watts or 15 kWh = 15 x $0.10 = $1.50

total costs using fluorescent light bulbs = $4 + $1.50 = $5.50

8 0

3 years ago