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
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

You might be interested in
On January 1, 2020, Jacobs Company sells land financed through an $80,000 note, issued by Andress Company. The note is an $80,00
12345 [234]

Answer:

Entries are shown below.

Explanation:

To record the journal entries, we first need to calculate interest payment and principal as per the present value. This is done below:

                                                    PV Factor     Present Value

Interest Payment     $6,400           1.7125         $10,960

Principal                   $80,000         0.8116        $64,928

                                                                           $75,888

<u>Journal Entries</u>

Date                Particular                            Debit ($)        Credit ($)    Working  

Jan 1, 2020 Note Receivable                80,000  

                       Discount on Receivable              4,112  

                       Land                                             75,888  

Dec 31, 2020  Cash                                6,400  

                        Discount on Receivable 1,948                    (8348-6400)

                        Interest Revenue                               8,348     (75888*11%)

Dec 31, 2021   Cash                                  6,400  

                         Discount on  Receivable      2,162             (4279-3600)

                         Interest Revenue                             8,562

                                                                                                (75888+1,948)*11%

Dec 31, 2021    Cash                                  80,000  

                          Notes Receivable                                 80,000

7 0
2 years ago
Talks-A-Lot, Inc. sells cell phones to customers and expects that 5% of phones sold will be returned for repair under its warran
ivann1987 [24]

Answer:

Warranty liability $2,128

Explanation:

680 phones sold x 5% x $76 per repaired phone = $2,584 total warranty liability

6 phones were repaired during the year x $76 =  $456

remaining warranty liability = total estimated liability - money spent repairing phones during the year = $2,584 - $456 = $2,128

total outstanding warranty liability = $2,128

Since phone warranties last less than a year, the full amount should be recorded under current liabilities.

5 0
3 years ago
The last stage of the strategy-formulating, strategy-executing process is Multiple choice question. implementing and executing t
Rudiy27

Answer: making corrective adjustments.

Explanation:

The strategy-formulating, strategy-executing process allows for companies to come up with strategies and then implement them. The first step would be to actually think about a strategic vision and then set objectives on how the company can go about this vision.

Then the company should craft a strategy to match these objectives. After this is done, the strategy should be implemented and executed. The final step would then be to monitor and evaluate both the internal and external environment of the company so as to make corrective adjustments to the strategy to take advantage of the situation.

4 0
2 years ago
Determine whether or not the Populist Movement was a success. Explain your reasoning.
Yanka [14]

The Populist Movement was a <u>total success</u>.

<h3>What was the Populist Movement?</h3>

The Populist Movement was an agrarian-based movement that championed the cause of the people versus the elite.

Based on what they were initially able to achieve, the Populist Movement was successful to a large extent as it created the opportunity to end the oppression of farmers and other agrarian workers, contributing to democratic norms.

Thus, the Populist Movement was a <u>total success</u>.

Learn more about the populist movement at brainly.com/question/1619680 and brainly.com/question/14560942

4 0
2 years ago
Read 2 more answers
As she prepared financial documents to be discussed at her company's
Lelu [443]

Answer: c) Full Disclosure Principle

Explanation:

The Full Disclosure Principle is a principle in accounting that tries to reduce any information asymmetry between a company and the people who are to have access to their financial statement.

It does so by requiring that all relevant information to the financial statements such as financial overviews for the period are added to the statements so that the readers can understand the transactions that took place as well as the accounting methodology used.

8 0
3 years ago
Other questions:
  • A pharmaceutical company in 2016 is researching the market conditions for their newest cold medicine. They pull demographic data
    7·1 answer
  • The concept of risk management is based on an assessment of benefits gained compared to the ___:
    10·1 answer
  • At the ________ level of an organization, functional managers focus on monitoring and controlling operational-level activities a
    7·1 answer
  • PB3.
    6·1 answer
  • Jack performs maintenance on the manufacturing machinery, and Charlie performs maintenance on the office computers. Would their
    12·1 answer
  • The TSA suits:
    15·2 answers
  • An agreement exists when one party offers a certain bargain to another party.
    6·1 answer
  • _____ refers to a contractual, strategic partnership between two or more separate business entities to pursue a business opportu
    14·1 answer
  • An example of a disincentive?
    8·1 answer
  • What is a common element of most budget documents in which the chief executive highlights the major issues, constraints, priorit
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!