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xenn [34]
3 years ago
9

A company is considering investing in a project that costs $300,000. The company uses straight-line depreciation and estimates t

hat the project has a useful life of 10 years with no salvage value. This project is expected to produce NET INCOME of $42,000 each year. Assuming a minimum rate of return of 10%, indicate the NET PRESENT VALUE of this project.
a. $41,928
b. $258,072
c. $120,000
d. $142,409
Business
2 answers:
Vaselesa [24]3 years ago
7 0

Answer:

NPV = $-41,928.18

Explanation:

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 = $-300,000

Cash flow each year from year 1 to 10 = $42,000

I = 10%

NPV = $-41,928.18

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

o-na [289]3 years ago
7 0

Answer:

b. $258,072

Explanation:

PERIOD              CASH FLOW                   NET PRESENT VALUE

Year 1                       $42,000                         \frac{42000}{(1 + 0.10)^{1}}  = 38181.82

Year 2                      $42,000                         \frac{42000}{(1 + 0.10)^{2}}  = 34710.74

Year 3                      $42,000                         \frac{42000}{(1 + 0.10)^{3}}  = 31555.22

Year 4                      $42,000                         \frac{42000}{(1 + 0.10)^{4}}  = 28686.57

Year 5                      $42,000                         \frac{42000}{(1 + 0.10)^{5}}  = 26078.70

Year 6                      $42,000                         \frac{42000}{(1 + 0.10)^{6}}  = 23707.91

Year 7                      $42,000                         \frac{42000}{(1 + 0.10)^{7}}  = 21552.64

Year 8                      $42,000                         \frac{42000}{(1 + 0.10)^{8}}  = 19593.31

Year 9                      $42,000                         \frac{42000}{(1 + 0.10)^{9}}  = 17812.10

Year 10                     $42,000                        \frac{42000}{(1 + 0.10)^{10}}  = 16192.82

Total                                                                          $258,071.83  

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bearhunter [10]

Answer:

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Explanation:

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2 years ago
Problems and applications q6 darnell loves playing rock 'n' roll music at high volume. jacques loves opera and hates rock 'n' ro
mafiozo [28]

Answer:

false

Explanation:

The Coase theorem states that parties in dispute should seek an optimal solution to their problem regardless of how property rights were initially distributed.

In this case, you need to find an agreement that satisfies both Darnell and Jacques regardless of who initially would have been considered to be right about the argument. Conflicts over rights to use property can be solved when parties settle on the efficient use of inputs. E.g. they could establish hours at which Darnell can listen to rock n' roll, and other hours when he shouldn't. That way both of them can enjoy the music they like and not bother the neighbors.

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3 years ago
Repair calls are handled by one repairman at a photocopy shop. Repair time, including travel time, is exponentially distributed,
wolverine [178]

Answer:

the average number of customers awaiting repairs = 0.30

the system utilization = 42

the amount of time that the repairman is not out on a call is  = 4.64 hours

the probability of two or more customers in the system = 0.1764

Explanation:

Given that :

Repair time, including travel time =  mean of 1.6 hours per call.

Requests for copier repairs = mean rate of 2.1 per eight-hour day

i.e mean rate R = 2.1/day

Time = 8 hours

thus; mean rate μ = 8 hours/ 1.6 hours = 5

(a)

Let the average number of customers awaiting repairs be I_i :

I_i = \dfrac{R^2}{\mu (\mu-R)}

I_i = \dfrac{2.1^2}{5 (5-2.1)}

I_i = \dfrac{4.41}{5 (2.9)}

I_i = \dfrac{4.41}{14.5}

\mathbf{I_i = 0.30}

the average number of customers awaiting repairs = 0.30

(b) Determine system utilization.

The system utilization is determined as follows:

\delta = \dfrac{R}{\mu}

\delta = \dfrac{2.1}{5}

{\delta = 0.42}

\mathbf{\delta = 42}

(c) The amount of time during an eight-hour day that the repairman is not out on a call is calculated as :

Percentage of Idle time = 1 - \delta

Percentage of Idle time = 1 - 0.42

Percentage of Idle time = 0.58

However during an 8 hour day; The amount of time that the repairman is not out on a call is = 0.58 × 8 = 4.64 hours

(d)

the probability of two or more customers in the system by assuming Poisson Distribution is:

P(N ≥ 2) = 1 - (P₀+ P₁)

where;

P₀ = 0.58

P₁ = 0.58  × 0.42 = 0.2436

P(N ≥ 2) = 1 - ( 0.58 + 0.2436)

P(N ≥ 2) = 1 - 0.8236

P(N ≥ 2) = 0.1764

Thus; the probability of two or more customers in the system is 0.1764

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hammer [34]

Answer:

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We know that a market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes.

In this example, The Coffee Collective is seeking to discover target customers who share particular coffee drinking habits and who are open to loyalty reward programs. Thus, they aim to find potential customers who share common characteristics.

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