1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liraira [26]
3 years ago
11

Panelli's is analyzing a project with an initial cost of $139,000 and cash inflows of $74,000 in Year 1 and $86,000 in Year 2. T

his project is an extension of current operations and thus is equally as risky as the current company. The company uses only debt and common stock to finance its operations and maintains a debt-equity ratio of .39 The aftertax cost of debt is 5.1 percent, the cost of equity is 13.2 percent, and the tax rate is 21 percent. What is the projected net present value of this project
Business
1 answer:
nikklg [1K]3 years ago
4 0

Answer:

The projected net present value of this project is -$2,386

Explanation:

In order to calculate the projected net present value of this project First we have to calculate the WACC of the firm as follows:

WACC=[(Weight of common stock*Corresponding cost)+(Weight of debt *Corresponding cost)[cost of debt is after tax)]/Total weight

WACC=[(1.0*0.132)+(0.39*0.051)]/1.39

WACC=10.92%(approx)

NPV=Present value of cash inflows-Initial Investmet

Therefore, NPV={[$74,000/(1.1092)]+[$86,000/(1.1092)∧2]}-$139,000

NPV=$66,714+$69,900-$139,000

NPV=-$2,386

The projected net present value of this project is -$2,386

You might be interested in
To get the best understanding of your observations, you should consider
bulgar [2K]

The correct option is B. their goals and strategies for learning.

Took the pf test and got 100%

7 0
3 years ago
How should a person cope with situational factor for which there are ethical confident skills?
ipn [44]

Self-confidence is considered one of the most influential motivators and regulators of behavior in people's everyday lives (Bandura, 1986). A growing body of evidence suggests that one's perception of ability or self-confidence is the central mediating construct of achievement strivings (e.g., Bandura, 1977; Ericsson et al., 1993; Harter, 1978; Kuhl, 1992; Nicholls, 1984). Ericsson and his colleagues have taken the position that the major influence in the acquisition of expert performance is the confidence and motivation to persist in deliberate practice for a minimum of 10 years.

Self-confidence is not a motivational perspective by itself. It is a judgment about capabilities for accomplishment of some goal, and, therefore, must be considered within a broader conceptualization of motivation that provides the goal context. Kanfer (1990a) provides an example of one cognitively based framework of motivation for such a discussion. She suggests that motivation is composed of two components: goal choice and self-regulation. Self-regulation, in turn, consists of three related sets of activities: self-monitoring, self-evaluation, and self-reactions. Self-monitoring provides information about current performance, which is then evaluated by comparing that performance with one's goal. The comparison between performance and goal results in two distinct types of self-reactions: self-satisfaction or -dissatisfaction and self-confidence expectations. Satisfaction or dissatisfaction is an affective response to past actions; self-confidence expectations are judgments about one's future capabilities to attain one's goal. This framework allows a discussion of self-confidence as it relates to a number of motivational processes, including setting goals and causal attributions.

7 0
3 years ago
Davidson Software Technologies believes in hiring only the best programmers in the industry. As a result, it uses a comprehensiv
Vladimir [108]

Answer:

The correct answer is C

Explanation:

HRM system is the system which is designed in order to automate the business process of human resource, compliance, transactions and payroll. This system allows the business to focus on the people through streamlining all the software workforce into the business intelligence solution.

Recruitment and selection is the procedure of identifying the requirement of job and defining the need of the position, advertising the position and selecting the appropriate person for the position.

Therefore, the recruitment and selection is the component of HRM system which uses the hiring procedure that comprise of testing and interviewing the professionals.

7 0
2 years ago
UPS is successful in the small package delivery market. One important reason for this success is the concept of: a. non-bureaucr
anzhelika [568]

Answer:

bureaucracy

Explanation:

According to my research on business strategies, I can say that based on the information provided within the question UPS is successful because of bureaucracy. This is a system of administration that has a clear hierarchy of authority, rigid labor, and inflexible rules and regulations, which allowed UPS to cement itself as one of the most successful delivery companies in the World.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
The market demand curve for a normal good will shift to the left ​(decrease​) when the price of a substitute good ▼ increases de
suter [353]

1. decreases 
2. increases3. decreases
4. decreases  
The answers here require you to understand the terms involved. So let's look at the options and see what is what.  
1. The price of a substitute good â–Ľ increases decreases​ 
* A substitute good is some good that can be used as a substitute for another good. So if that substitute becomes cheaper, it will be used more as a substitute for the original good. So the answer is "decreases"  
2. The price of a complementary good ▼ decreases increases​,
 * A complementary good is a good that's used in conjunction with another good. Something like milk and cookies. As more cookies are consumed, more milk is desired to go along with the cookies. So increasing the price of the complementary good will decrease the demand of the other good. So the answer is "increases"  
3. Consumer income â–Ľ increases decreases 
* If the consumer has less money to spend, then spending on non-essential goods will decrease. So the answer is "decreases".  
4. Population â–Ľ decreases increases 
* A smaller population is a reduced consumer base, so fewer goods are purchased. The answer is "decreases"
7 0
3 years ago
Other questions:
  • An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of​ a:
    11·1 answer
  • You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cos
    6·1 answer
  • Section 1239 recharacterizes gain on the sale of depreciable property to related person as ordinary income.
    6·1 answer
  • For what type of financial aid can you apply through the FAFSA?
    7·2 answers
  • Why are import and export two terms that are often involved in conversations about international trade or channel management? Ev
    14·1 answer
  • How important are the development of the many management theories<br>​
    15·1 answer
  • भबड़े भाई ने शुरू मे पढाई का कैमा डर दिखलाया -
    7·1 answer
  • When thieves use your name and good credit rating to get cash or buy things, they are engaging in Multiple Choice credit mishand
    7·1 answer
  • A corporation, like a(n)_______, may file suit or _______, or may form a contract or breach a contract.
    9·1 answer
  • how to find percentage of the portofolio must be invested in the first and second investment respectively?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!