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evablogger [386]
3 years ago
7

"The net present value of the investment, excluding the annual cash inflow, is −$403,414. To the nearest whole dollar how large

would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)"

Business
1 answer:
nadezda [96]3 years ago
4 0

Answer: c. $81,202

Explanation:

The inflow will be annual and constant which makes it an annuity. Given the discount rate of 12% and a useful life of 8 years, the present value interest discount factor based on the table is = 4.968.

Option 1 present value

= 48,410 * 4.968

= $240,500.88‬

Option 2 present value

= 50,427 * 4.968

= $250,521.34

Option 3 present value

= 81,202 * 4.968

= $403,412

Option 3 is the closest option with the difference being down to rounding errors. The annual inflow would have to be $81,202 to make the investment in the equipment financially attractive.

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As both aims for no takeover of the company, both work in for each other, agreeing to the suggestions placed.

There is no dis-regard to any of the suggestions paid by any of the party. This threat actually creates moral harmony and unity among stakeholders and management.

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The following transactions occur for the Hamilton Manufacturers.
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Answer:

The answer is stated below:

Explanation:

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So,

Assets        =   Liabilities        +  Stockholders' equity

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2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.

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Assets        =   Liabilities        +  Stockholders' equity

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3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.

So,

Assets        =   Liabilities        +  Stockholders' equity

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The correct answer is strategic objective.

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