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vovikov84 [41]
3 years ago
8

Which of the following factors should be included in the cash flows used to estimate a project's NPV?a. All costs associated wit

h the project that have been incurred prior to the time the analysis is being conducted.b. Interest on funds borrowed to help finance the project.c. The end-of-project recovery of any additional net operating working capital required to operate the project.d. Cannibalization effects, but only if those effects increase the project's projected cash flows.e. Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes.
Business
1 answer:
ser-zykov [4K]3 years ago
3 0

Answer:

c. The end-of-project recovery of any working capital required to operate the project.

Explanation:

In the Process of Computing Net present value of Project , we need to to consider all the cash in flows. To Operate the Project we need an amount in excess the amount invested in the Project assets, that amount is called Working capital. This amount rotate throught life of the Project and the project relief that working capital on the end of the Project. But in calculating Present value of cash we also need to calculate the Present value of working capital that recovered at the end of the porject by Multiplying with Present value factor at Required rate.

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You run a school in Florida. Fixed monthly cost is $5,435.00 for rent and utilities, $6,171.00 is spent in salaries and $1,545.0
umka21 [38]

Answer:

31

Explanation:

The calculation of indifferent between your current mode of operation and the new option is shown below:-

Current Operation

Contribution Margin = Monthly Fees - Variable Cost

= $734.00 - $91.00

= $643.00

Total Fixed Cost = Rent and Utilities + Salaries + Insurance

= $5,435.00 + $6,171.00 + $1,545.00

= $13,151.00

New Operation

Contribution Margin = Monthly Fees - Variable Cost

= $1,054.00 - $158.00

= $896.00

Total Fixed Cost = Rent and Utilities + Salaries + Insurance

= $11,679.00 + $6,974.00 + $2,408.00

= $21,061.00

Here we will assume the indifferent number of students will be X

So,

Income under current option = Income under new option

$643.00 × X - $13,151.00 = $896.00 × X - $21,061.00

$253X = $7,910

X = $7,910 ÷ $253

= 31.26

or

= 31

5 0
3 years ago
It is to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual
Elanso [62]

It is <u>correct </u>to say that Blue Hamster’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings, $4,194,250 and $5,121,531, respectively. This is because <u>all of the items</u> reported in the income statement involve payments and receipts of cash.

<u>Explanation:</u>

Inflow of the company is the income of the company that it gets from the sale of the goods and the services that have been produced by the company by using raw material, labor and so on.

Outflow of the company is the expenditures and costs that the company makes on the production of the goods and services that are to be sold by the company to it's clients to earn revenue. The main purpose of the company is to increase it's inflows as much as possible.

6 0
2 years ago
You have just turned 30 years​ old, have just received your​ MBA, and have accepted your first job. Now you must decide how much
igor_vitrenko [27]

Answer:

Find attached

Explanation:

The present value of $97,000 per year after retirement for 35 years is computed thus:

=-pv(rate,nper,pmt,fv)

rate is the plan rate of return of 6.5%

nper is 35 years(years after retirement)

pmt is the amount required per year

fv is not applicable is taken as zero

=-pv(6.5%,35,97000,0)=$1,327,634.80  

The amount needed in the account at retirement is the future value of the plan.

Regular yearly payment into the plan is =pmt

=pmt(rate,nper,-pv,fv)

=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74

The percentage of income that must be contributed is found in the attached

Download xlsx
8 0
3 years ago
Ben created a site that allows potential customers to fill in their information if they want a free consultation. What did Ben c
Sauron [17]

Answer: the correct answer is call-to-action.

Explanation:

6 0
2 years ago
All of the following questions are open-ended problems. You must compute an answer for every problem. For percentage answers, ca
DerKrebs [107]

Solution :

13. Net income = total assets x ROA

                   = $ 1,000,000 x 12%

                  = $ 120,000

Net Income for company is $120,000.

Net Profit margin = 4.25%

Total sales = net income / net profit margin

                  = $ 120,000 / 4.25%

                  = $ 2,823,529

Total sales for company is $ 2,823,529

14. Debt ratio = 72%

   So weight of debt = 72%

   Weight of equity = 1 - 72%

                                = 28%

   Debt equity ratio  $=\frac{72 \%}{28 \%}$  

                                 =  2.57

   Debt equity ratio is 2.57

15. Debt ratio = 42.50%

So, weight of debt = 42.50%

Weight of equity = 1 - 42.50%

                             = 57.50%

Weight of equity is 57.50%.

Return on equity = 15%.

Return on assets = 57.50% × 15%

                            = 8.625%

Return on assets is 8.625%.

16.

Debt Equity ratio = 1.45

Weight of debt = 59.18%

Weight of equity = 40.82%

Return on assets = 16%

Return on equity = 16% / 40.82%

                              = 39.20%

Return on equity is 39.20%.

17.

Total Assets turnover = Sales / Total Assets

                                     = (Net Income / Total Assets) / (Net Income / Sales)

                                    = ROA / Net Profit margin

                                      = 7.50% / 15%

                                      = 0.50

Total Assets turnover is 0.50.

8 0
3 years ago
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