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avanturin [10]
3 years ago
5

Suppose Pheasant Pharmaceuticals is evaluating a proposed capital budgeting project (project beta) that will require an initial

investment of $2,225,000. The project is expected to generate the following net cash flows:year cash flowyear 1 $375,000year 2 $425,000year 3 $400,000year 4 $475,000Pheasant Pharmaceuticals' cost of capital is 9%, and project beta has the same risk as the firm's average project. Based on the cash flows, what is project beta's NPV?a) -$1,053,449b) -$477,874c) -$877,874d) -$1,009,555
Business
1 answer:
N76 [4]3 years ago
5 0

Answer:

c) -$877,874d

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in :

Year 0 = $-2,225,000

year 1 = $375,000

year 2 = $425,000

year 3 = $400,000

year 4 = $475,000

I = 9%

NPV = $-877,873.94

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Consider the metaphor used in the article differentiating managerial and leadership roles (average managers play checkers, great
Jobisdone [24]

Answer:

Following are the solution to this question:

Explanation:

The metaphor of gambling, chess, and rallying related only to the degree of growing complexity and significance of different roles. In typical management needs and allocates capital, so named players. A senior executive not just uses the resource and also serves as a key motivator for both the company's so-called chess-making goals. Its successful leaders, however, not just to lead to accomplishing organizational targets, and also motivate individuals to serve a better future, and people are advised to rally to the metaphor is therefore said to have been accurate and is focused on the various positions and levels performed by the organization, thus distinguishing roles.

5 0
3 years ago
1On January 3, Carothers Corporation acquired $200,000 in new equipment in exchange for cash of $170,000 cash and a trade-in of
stich3 [128]

Answer:

The journal entry:

Debit Accumulated depreciation $160,000

Debit Equipment $200,000

Credit Cash $170,000

Credit Equipment $180,000

Credit Gain on exchange asset $10,000

Explanation:

The old equipment had a book value of $20,000 at the time of exchange. The company paid $170,000 cash and a trade-in of old equipment.

The new equipment costs of $200,000.

Carothers Corporation will record gain on exchange by the journal entry:

Debit Accumulated depreciation $160,000

Debit Equipment $200,000

Credit Cash $170,000

Credit Equipment $180,000

Credit Gain on exchange asset $10,000

8 0
3 years ago
Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of
brilliants [131]

Answer:Therefore amount of deductions allowable in year of installation = $7,808

Explanation:

Deductions  entitled in the year of installation of pool  =Cost of installing pool -insurance cost - the increase in property value

=$19,520- $4,880 -$6,832

=$7,808

Therefore amount of deductions allowable = $7,808

4 0
4 years ago
Tyler is a finance manager at an automobile manufacturing company. He collects internship reports from summer interns at the com
tamaranim1 [39]

Answer:

Disseminator role.

Explanation:

Disseminators play the important part of communicating important and useful information to colleagues and the team. Generally managers are responsible for transmitting information regarding management expectations to employees with a view of achieving organisational goals.

Tyler as a finance manager at an automobile manufacturing company. Collects information from summer interns regarding improvements in finance strategy. He communicates this information to the Chief Financial Officer. This is a dissemination function by Tyler.

6 0
3 years ago
Read 2 more answers
g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales S
d1i1m1o1n [39]

Answer:

Effect on income= $3,520 increase

Explanation:

Giving the following information:

Contribution margin= 44

The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales.

To calculate the effect on income, we need to use the following formula:

Effect on income= increase in contribution margin - increase in costs

Effect on income= 230*44 - 6,600

Effect on income= $3,520 increase

3 0
4 years ago
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