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antiseptic1488 [7]
3 years ago
15

A firm, with an 18% cost of capital, is considering thefollowing projects (on January 1, 2011):Jan. 1, 2011, Cash outflow (000's

omitted)Dec. 31, 2015, Cash inflow (000's omitted)Project internal rate of returnProject A $3,500 $7,400 15%Project B 4,000 9,950 ?Present Value of $1 Due at End of "N" PeriodsN 12% 14% 15% 16% 18% 20% 22%4 .6355 .5921 .5718 .5523 .5158 .4823 .42305 .5674 .5194 .4972 .4761 .4371 .4019 .34116 .5066 .4556 .4323 .4104 .3704 .3349 .2751Using the net present value method, Project A's netpresent value isa. $316,920b. $0c. $(265,460)d. $(316,920)
Business
1 answer:
Aleks [24]3 years ago
4 0

Answer:

<em>c. $(265,460)</em>

Explanation:

The net present value of Project A shall be determined as needed.

The cash inflow of 31 December 2015 is five years from the current cash outflow and the net present value method uses the 18 per cent capital cost of the company.

The current value factor for 18 percent for 5 years is.4371, and $7.400,000 times.4371 is equivalent to $3.234.540, which is $265.460 lower than the current cash outflow of $3.5 million.

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You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance ma
Helga [31]

Answer:

$35.71

Explanation:

The computation of the stock drop price is shown below:

Maintenance margin = Number of shares purchased × price - loan amount ÷  Number of shares purchased × price

30% = 200 shares × price - $5,000 ÷ 200 shares × price

30% × 200 shares × price = 200 shares × price - $5,000

60 × price = 200 shares × price - $5,000

After solving this, the price would be $35.71

And, the loan amount is equal to  

= Number of common stock shares purchased × per share value × initial margin

= 200 shares × $50 × 50%

= $5,000

4 0
3 years ago
Erin works for a dry-cleaning company that has a contract with the U.S. government. To save on cleaning fluid, her boss orders h
erica [24]

Answer: Failed to informed the proper party

Explanation:

When negligence of the right deeds to be done in an organization is osetved by an individual working their, it is right report the situation that occurred to the right authority so that the right action would be taken which will not endanger the reporting individual or harm his employment in the organization. Erin's situation will be taken with kids glove due to she failed to report the situation to the appropriate party for investigations to be carried out.

7 0
3 years ago
Jane purchased a piece of equipment for $250,000 for use in her business. She incurred freight charges of $3,500, installation c
Ne4ueva [31]

Answer: $36,000 loss

Explanation:

Purchase cost = $250,000

Freight charges = $3500

Installation charges = $2500

Maintenance cost = $5000

Depreciation = $25000

Offered price = $200,000

Total cost incurred = $(250,000 + 3500 + 2500 + 5000)

Total cost incurred = $261,000

Depreciation = $25,000

Book value of equipment = $261,000 - $25,000 = $236,000

Gain/loss = Book value - offered price

Gain/Los = $236,000 - $200,000

$36,000 loss

4 0
4 years ago
A company produces 1,000 packages of chicken feed per month. The sales price is $4.00 per pack. Variable cost is $1.50 per unit,
Gwar [14]

Answer:

It is more profitable to add the vitamin and sell the product for $5. Income will increase by $260

Explanation:

Giving the following information:

The number of units= 1,000 packages

Actual:

Selling price= $4.00 per pack.

Variable cost is $1.50 per unit

Fixed costs are $1,700 per month.

New option:

Selling price= $5

Variable cost= $1.9

Fixed costs= $2,040

We need to calculate the net income of both options, and choose the more profitable one:

Actual:

Net income= 1,000*(4-1.5) - 1,700= $800

New:

Net income= 1,000*(5 - 1.9)- 2,040= $1,060

It is more profitable to add the vitamin and sell the product for $5.

6 0
3 years ago
New sources of silicon are located in wyoming. the determinant causing the shift in this scenario is
GuDViN [60]
<span>The determinant that causing the shift is resource cost or availability. 
New sources means that the companies in relevant sectors could obtain more raw silicon materials at the cheaper price.
This will lead to lower price of products offered in the market and resuled in higher amount demand of products that use the material.</span>
8 0
4 years ago
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