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Crazy boy [7]
3 years ago
10

Rooney, Inc. is considering the purchase of a new machine costing $700,000. The machine's useful life is expected to be 8 years

with no salvage value. The straight-line depreciation method will be used. The net increase in annual after tax cash flow is expected to be $156,000. Rooney estimates its cost of capital to be 12%. (The present value of a $1 annuity for 8 years at 12% is 4.968, and the present value of $1 to be received in 8 years is 0.404.) The net present value of the investment in the machine under consideration is:
Business
1 answer:
Fiesta28 [93]3 years ago
6 0

Answer:

NPV = $74,951.80

Explanation:

The 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 =  $700,000

Cash flow each year from 1 year 8 =  $156,000

I = 12%

NPV = $74,951.80

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Which of the following types of promotion includes a two-way conversation?
Nikitich [7]

Answer:

C. Personal selling

Explanation:

In personal selling, a sales representative engages the customer on a one-one conversation in an attempt to persuade them to buy a product or service. The sales person makes us of his or her skill, experience, and abilities to convince the buy the goods or services. Personal selling is also known as face-face selling.

Personal selling requires a sale representative to have good interpersonal skills.  The salesperson will point out at the salient features and benefits in a bid to convince the customer that the product will add value to them. The customers seek as much information as they desire and gets the opportunity to negotiate for better prices.

7 0
3 years ago
SCI just paid a dividend of $2.16 per share, and its annual dividend is expected to grow at a constant rate of 4.50% per year. I
guajiro [1.7K]

Answer:

$33.44

Explanation:

The computation of the intrinsic value of the share is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $2.16 + $2.16 × 4.50%

= $2.16 + $0.0972

= $2.2572

The required rate of return is 11.25%

And, the growth rate is 4.50%

So, the intrinsic value is

= ($2.2572) ÷ (11.25% - 4.50)

= $33.44

8 0
3 years ago
________ costs refer to the sum of the fixed and variable costs for any given level of production. Target Break-even Total Value
BigorU [14]

Based on microeconomic theory, <u>Total</u> costs refer to the sum of the fixed and variable costs for any given level of production.

<h3>What makes Total Cost?</h3>

Generally, the total cost is the sum of all the price of the material utilized, the wages or salary paid in the production, and the direct expenditure.

<h3>Components of Total Cost </h3>

The components of Total Cost include the following:

  • Prime cost
  • Factory cost
  • Office cost
  • Cost of sales, etc.

Hence, in this case, it is concluded that the correct answer is "<u>Total Cost."</u>

Learn more about Total Cost here: brainly.com/question/25109150

5 0
2 years ago
A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect an
worty [1.4K]

Answer:

, other things being equal?DPMO= # of defects/# of opportunities for error per unit x # of units (1,000,000)DPMO= 23/1500 x 1,000,000 or DPMO= 23/1,500,000,000 or DPMO= 1.53The 1.53 is within the target specification of Six Sigma. This performance is rated as within limits means the process is working well. The product is within the limits of the defects allowed based off the1500 parts or the “four defects per million units

Explanation:

5 0
4 years ago
A change in location with respect to a reference point is ___ <br> PLEASE HELP!!!
balandron [24]

Answer:

Motion.

Explanation:

Motion can be defined as a change in location with respect to a reference point.

This ultimately implies that, motion would occur as a result of a change in location (position) of an object with respect to a reference point or frame of reference i.e where it was standing before the effect of an external force.

Mathematically, the motion of an object is described in terms of acceleration, time, distance, speed, velocity, displacement etc.

3 0
3 years ago
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