In my last job, I led complex negotiations that dealt with the cost, size, and/or scope of the deal. True or false

A company is considering the purchase of new equipment for $57,000. The projected annual net cash flows are $23,400. The machine

lina2011 [118]

Answer:

Net Present Value = $3,304.069

Explanation:

To determine whether or not the investment was right, we will need to determine the net present value of the investment (NPV).

The NPV is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.

NPV of an investment(NPV)

NPV = PV of Cash inflows - PV of cash outflow

The cash inflow is an annuity.

PV of annuity= A× 1 -(1+r)^(-n)/r

A- Annual cash flow ,- 23,400 r - discount rate - 8%, number of years- 3

Present Value of cash inflow =23,400 × (1- (1.08)^(-3)/0.08 = 60,304.06

Initial cost = 57,000

Net Present Value = 60,304.06 - 57,000 = 3,304.069

Net Present Value = $3,304.069

Kindly note that a discount rate of 8% was used as it is the opportunity cost of capital for the investment.

4 0

3 years ago

Here's the revenue and expenses for the month. Calculate whether Mia had a profit or loss.

kherson [118]

Answer:

Loss

Explanation:

Because she started with 860.00 then ended with 300

4 0

2 years ago

Chris Co. produces sports equipment and is currently producing 1,000 mini long boards annually. A supplier has offered to produc

Radda [10]

Answer: $305

Explanation:

The avoidable production cost for Chris to produce one mini long board goes thus:

Unit Level Cost = $280

Add: Product Level Cost = $25,000 / 1000 units = $25

Then, the avoidable cost to produce one unit will be:

= $280 + $25

= $305

6 0

3 years ago

You are given the market demand function Q=2800-1000p, and that each duopoly firm's marginal cost is $0.07 per unit, which impli

Fed [463]

Answer:

q1 = 910

q2 = 910

Explanation:

Given:

Q = 2800 - 1000p

Marginal cost = $0.07 per unit

Q = 2800 - 1000p

$p = \frac{2800 - Q}{1000}$

$p = \frac{2800- q_1 - q_2}{1000}$

Let's calculate profit of firm 1:

TR = p1 q1

$= \frac{2800 q_1 - q_1^2 - q_1 q_2}{1000}$

$MR = \frac{2800 - 2q_1 - q_2}{1000}$

MR = MC = 0.07

$\frac{2800 - 2q_1 - q_2}{1000} = 0.07$

Cross multiplying:

2800 - 2q₁ - q₂ = 70

2800 - 2q₁ = 70 + q₂

2800 - 70 - 2q₁ = q₂

2730 - 2q₁ = q₂...............(1)

Let's calculate profit of firm 2:

TR = p₁ q₂

$= \frac{2800 q_2 - q_1 - q_2^2}{1000}$

$\frac{2800 - q_1 - 2q_2}{1000} = MR$

MR = MC = 0.07

$\frac{2800 - q_1 - 2q_2}{1000} = 0.07$

Cross multiplying:

2800 - q₁ - 2q₂ = 70

2800 - 2q₂ = 70 + q₁

2800 - 70 - 2q₂ = q₁

2730 - 2q₂ = q₁................... (2)

Substitute 2730 - 2q₂ for q₁ in (1)...

Thus:

2730 - 2q₁ = q₂

2730 - 2(2730 - 2q₂) = q₂

2730 - 5460 + 4q₂ = q₂

-2730 + 4q₂ = q₂

-2730 = q₂ - 4q₂

-2730 = - 3q₂

q₂ = -2730/-3

q₂ = 910

Substituting 910 for q₂ in (2):

2730 - 2q₂ = q₁

2730 - 2(910)= q₁

2730 - 1820 = q₁

910 = q₁

q₁ = 910

The Cournot equilibrium quantities are: q₁= 910; and q₂ = 910

3 0

2 years ago

At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $175,000; Total Liabilit

Ne4ueva [31]

Answer:

$88,000

Explanation:

The computation of the ending balance of the retained earning balance is shown below:

As we know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

where,

net income is

= Revenues - expenses

= $50,500 - $33,000

= $17,500

And, the other items values would remain the same

So, the ending balance is

= $92,500 + $17,500 - $22,000

= $88,000

7 0

3 years ago