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
taurus [48]
3 years ago
9

The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save mo

ney. The net cost of this machine is $55,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 28,000 2 26,000 3 26,000 4 31,000 5 12,000 a. If the cost of capital is 15 percent, what is the net present value of selecting a new machine
Business
1 answer:
hichkok12 [17]3 years ago
3 0

Answer:

NPV = $29,794.60

Explanation:

Year      Cash Flow

0          -$55,000

1            $28,000

2           $26,000

3           $26,000

4           $31,000

5           $12,000

NPV = -$55,000 + ($28,000 x 0.8696) + ($26,000 x 0.7561) + ($26,000 x 0.6575) + ($31,000 x 0.5718) + ($12,000 x 0.4972) = -$55,000 + $24,348.80 + $19,658.60 + $17,095 + $17,725.80 + $5,966.40 = -$55,000 + $84,794.60 = $29,794.60

You might be interested in
Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing o
Ede4ka [16]

Answer:

920 (Unfavorable)

Explanation:

Labor rate variance = Actual direct labor hours (Actual direct labor rate - Standard direct labor rate)

Labor rate variance = 2,300 * ($21.7 - $21.3)

Labor rate variance = 2,300 * 0.4

Labor rate variance = 920 (Unfavorable)

6 0
3 years ago
How long would it take for Nico to save an adequate amount for retirement if he deposits​ $40,000 per year into an account begin
dalvyx [7]

Answer: It will take Nico approximately 12 years

Explanation:

Payments = $40000

r = 12%

Future Value = 1000 000

Future Value annuity = Payments((1 + r)^n - 1)/r

1000000 = 40000((1 + 0.12)^n - 1)/0.12

40000((1.12)^n - 1) = 1000000 x 0.12

(1.12)^n -1 = 120000/40000

(1.12)^n = 3 + 1

nlog(1.12) = log(4)

n = log(1.12)/log(4) = 12.232510748

n ≈ 12 years

It will take Nico approximately 12 years

6 0
2 years ago
Read 2 more answers
Suppose that the price of product x rises by 20 percent and the quantity supplied of x increases by 15 percent. The coefficient
SSSSS [86.1K]

Answer: Coefficient of elasticity of supply is 0.75.

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to a change in the price of the good. It can be measured using the percentage point method,

e_{s} = \frac{Percentage change in Quantity supplied}{Percentage change in price}

=\frac{15}{20}

=0.75

Therefore, coefficient of elasticity of supply is 0.75. Since it is less than 1 we can infer that supply for this good is relatively inelastic.

3 0
3 years ago
Use the following information to answer the question: Cost of car: $26,000 Residual value: $6,000 Life: 5 years Using the given
juin [17]
(26000-6000)/5=4000
................
7 0
3 years ago
Controlling the money supply to achieve desired macroeconomic goals is called
Sergio [31]

Answer:

The answer is monetary policy

Explanation:

Monetary policy is an economic policy that manages the size and growth rate of the money supply in an economy. It is a powerful tool to regulate macroeconomic variables such as inflation, consumption, growth and liquidity.

3 0
3 years ago
Other questions:
  • Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the debt
    5·1 answer
  • A sequence of values of some variable or composite of variables taken at successive, uninterrupted time periods is called a
    6·1 answer
  • Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $ 398 comma 930 due in 28 y
    11·1 answer
  • Jane, the CEO of a company, is trying to resolve how a new marketing strategy should be conducted. She is taking into account th
    12·1 answer
  • A firm just paid a dividend of $6 per share. Next year the dividend is expected to grow 8 percent, thereafter 10 percent forever
    12·1 answer
  • If a company has total revenues of $100,000, sales discounts of $3,000, sales returns of $4,000, and sales allowances of $2,000,
    5·1 answer
  • Pyrdum Corporation produces metal telephone poles. In the most recent month, the company budgeted production of 3,500 poles. Act
    15·1 answer
  • In economics, the phrase "There is no such thing as a free lunch" means what?
    15·1 answer
  • Kevin works in an airline office. He has a habit of visiting social networking sites on his office computer during work hours. W
    11·2 answers
  • What is considered gross proceeds paid to an attorney.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!