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charle [14.2K]
3 years ago
12

Sigma is thinking about purchasing a new clam digger for $14,000. The expected net cash flows resulting from the digger are $9,0

00 in year 1, $7,000 in year 2, $5,000 in year 3, and $3,000 in year 4. Should Sigma purchase this digger if its cost of capital is 12 percent
Business
1 answer:
AlekseyPX3 years ago
6 0

Answer:

Yes, it should be purchased

Explanation:

The computation is shown below;

Net present value = $9,000 ÷ 1.12 + $7,000 ÷ 1.12^2 + $5,000 ÷ 1.12^3 + $3,000 ÷ 1.12^4 - $14,000

= $5,081.53

As we can see that the net present value comes in positive so sigma should purchased the digger

Therefore the same would be considered and relevant

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A household-products manufacturing firm was required to examine its organizational architecture in order to survive in the marke
noname [10]

Answer:

decision rights, rewards, and evaluation systems.

Explanation:

The aspects the decision firm looked into looked are decision rights, rewards, and evaluation systems.

1. Decision rights:

The person who makes all the relevant decisions should have all informations available. People with relevant information should be made to take key decisions. This would increase the possibility of the organization being in the right

direction.

2. Rewarding: this is rewarding those individuals who make the right decisions. Employees who have decision making rights should be rewarded with incentives when they make the right decisions.

3. Evaluation systems: These should be put in place to check the performance of individuals and business units.

3 0
3 years ago
Photosynthesis what is the term​
Vesnalui [34]

Answer:

synthesis of chemical compounds with the aid of radiant energy and especially light especially : formation of carbohydrates from carbon dioxide and a source of hydrogen (such as water) in the chlorophyll-containing cells (as of green plants) exposed to light.

I hope it's helpful!

5 0
3 years ago
Read 2 more answers
Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold
stepan [7]

Answer:

Net increase in cash = $650

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.

Also note: See the attached excel file for the statement of cash flows using the indirect method.

From the attached excel file, we have:

Net cash flow from operating activities = $830

Net cash flow from investing activities = $30

Net cash from financing activities = -$210

Net increase in cash = $650

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
3 0
3 years ago
1.how can you categorize the buyers who are not price sensitive ?
klio [65]
Nsjdjdmd oyster rnsiud. snao she buyers price
5 0
3 years ago
Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect cha
trasher [3.6K]

The correct answer is Economic.

Types of environment for a company include:

  • The economic environment
  • The Demographic environment
  • The Political environment
  • The Cultural environment

The economic environment of a company includes factors like Income, cost of living, interest rates, and savings & borrowing

The Demographic environment of a company includes factors like Age, race, and gender.

The Political environment of a company includes factors like Government, legislation, and regulations.

The Cultural environment of a company includes factors like Lifestyle, customs, traditions etc.

Hence, Changes in variables, such as income, cost of living, interest rates, and savings & borrowing patterns most likely reflect changes in the economic environment of a company.

Learn more about interest rates:

brainly.com/question/25545513

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8 0
2 years ago
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