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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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Lyrx [107]

Answer:

the amount of the cost of goods sold is $55,120

Explanation:

The computation of the cost of goods sold for the month is shown below:

Since 800 units were sold out of which 360 units would sold at $70 and the remaining units i.e. 440 units would be sold at $68

= 360 units × $70 + 440 units × $68

= $25,200 + $29,920

= $55,120

Hence, the amount of the cost of goods sold is $55,120

5 0
3 years ago
Find the effective rate of interest to the nearest hundredth percent if $60.94 is earned in one year on a deposit of
Nata [24]

Answer:

6.25%

Explanation:

The formula for calculating interest rate is as follows

I= P x R x T

Where

I= interest,  P= principal amount, T is time

in this case: I= $60.94, P=$975, T=1 year

Therefore:

$60.94 = $975 x( r/100) x 1

$60.94 =975(r/100) multiply both side by 100 to get rid of the fraction.

6094=975r

r = 6094/ 975

r = 6.2502

interest rate = 6.25%

8 0
2 years ago
Jane is 20 years old and is a sophomore at Lake University. She is a full-time student and does not have any gross income. Jane
OLga [1]

Answer:

c. Jane grandparents cannot claim her as a dependent because Jane provided more than half of her own support.

Explanation:

Based on the information given the statements regarding the dependency rules for Jane that is true is Jane grandparents cannot in any way claim Jane as a dependent reason been that Jane provided more than half of her own support due to the fact that she her s total support for is the amount of $30,000 which as well include a scholarship of the amount of $5,000 to help cover tuition in which Jane used the amount of $12,000 of her savings while her grandparents on the other hand only provided the amount of $13,000 out of the Total support of $30,000.

3 0
2 years ago
Jose, a bank officer, takes the time to fully explain to an applicant why he is being turned down for a loan and does his best t
sineoko [7]

Answer:

Interactional Justice

Explanation:

Interactional Justice is an organizational behavior that deals with how respectfully and dignified people affected by a decision are treated.

As a management or leadership, interactional justice is important as it shows how well managers/leaders can execute their decisions and use their authority with employees/subordinates while being fair, polite and open to them.

Interactional Justice can simply be said to be the fairness and openness with which decisions are made known to the affected individuals.

Cheers.

4 0
3 years ago
Read 2 more answers
Traditionally, department stores almost exclusively offered soft goods. But now, most department stores focus on selling both ha
Studentka2010 [4]

Answer:

False

Explanation:

Traditionally, department stores sold both soft goods and hard goods. But now, most department stores focus almost exclusively on soft goods.

Soft goods refers generally to clothing and other textiles like bedding and fabrics.

Hard goods refers to a broad range of products like appliances, furniture, tools, electronics, etc.

5 0
2 years ago
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