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3 years ago

Light sweet petroleum, inc., is trying to evaluate a generation project with cash flows:________.

Business

1 answer:

tresset_1 [31]3 years ago

3 0

Answer:

a-1. NPV for the project is $8,381,576.17

a-2. A. Yes. Accept the Project.

b. 40.84 % and 40.84 %

Explanation:

The Net Present Value can be determined using a Financial Calculator as follows :

-38,600,000 CFj

62,600,000 CFj

- 11,600,000 CFj

11 % I/YR

Shift NPV $8,381,576.17

A Company should accept projects that have a positive Net Present Value.Therefore, Accept this project.

Calculation of the Internal Rate of Return using a Financial Calculator :

-38,600,000 CFj

62,600,000 CFj

- 11,600,000 CFj

Shift IRR 40.84 %

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3 years ago

Parliament Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Parliam

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Answer:

Note: The complete question is attached as picture below

We are add the previous month +10% to get that month's amounts

Sales Budget

January February March

Cash sales $50,000 $55,000 $60,500

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Total sales $170,000 $187,000 $205,700

Workings:

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Credit sales= 120,000+(120,000*10%) = $132,000

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