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
Naddika [18.5K]
3 years ago
5

Sub-prime loan company is thinking of opening a new office, and the key data are shown below.

Business
1 answer:
Nookie1986 [14]3 years ago
5 0
To complete the above question, please see below:

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) 

<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
You might be interested in
Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A share of stock sells fo
Ugo [173]

Answer:

New price (P1) = $72.88

Explanation:

Given:

Risk-free rate of interest (Rf) = 5%

Expected rate of market return (Rm) = 17%

Old price (P0) = $64

Dividend (D) = $2

Beta (β) = 1.0

New price (P1) = ?

Computation of expected rate on return:

Expected rate on return (r) = Rf + β(Rm - Rf)

Expected rate on return (r) = 5% + 1.0(17% - 5%)

Expected rate on return (r) = 5% + 1.0(12%)

Expected rate on return (r) = 5% + 12%

Expected rate on return (r) = 17%

Computation:

Expected rate on return (r) = (D + P1 - P0) / P0

17% = ($2 + P1 - $64) / $64

0.17 = (2 + P1 - $64) / $64

10.88 = P1 - $62

New price (P1) = $72.88

7 0
3 years ago
illustrate the process needed in the three economic sectors to have the final product being a teddy bear
Zina [86]
Which make easier the measurement of economic activity in the three ..... the strategy used by firms that have as many different product
3 0
3 years ago
Ryan wants to work in a factory as a machine operator. What is a basic requirement for this job?
natka813 [3]

knowing how to work with heavy machinery


7 0
3 years ago
According to the video, the Chinese economic model since the 1980s is commonly referred to as _________ with Chinese characteris
rjkz [21]

Answer: hello the video related to your question hence I will provide a general answer based on the scope of the question.

answer :

Socialism

Explanation:

The Chinese economic model since the early 1980s is commonly referred to as Socialism with Chinese characteristics

Socialism with Chinese Characteristics is a set of political theories been adapted by the Chinese to fit in into the Chinese circumstance and around this period ( early 1980s ) i.e. Boluan Fanzheng period

4 0
3 years ago
The purpose of this category of interview questions is to learn about the interviewee’s personal attributes. A. General informat
sergey [27]

Behavioral questions are that type of questions in which The purpose of this class of interview questions is to learn about the personal attributes of the interviewee.

<h3>What are behavioral questions?</h3>

  • Behavioral questions are a necessary component of the interview as it states about the knowledge of the interviewee except his educational and qualification skills relevant in the real world.

  • Behavioral questions are a collection of questions enquired by an interviewer to the interviewee in the one shot of interviews.

  • Such questions express so much about the answerer as it denotes their personal conceptions, and it helps to find out the ability, presence of mind, practical behavior in a situation etc.

Hence, the purpose of behavioral questions in an interview is to express about the interviewee's personal dimensions which already faced by such person.

Learn more about interviews, refer:

brainly.com/question/15182595

3 0
2 years ago
Other questions:
  • Stacey's text messaging plan costs $10 for the first 250 messages and 30¢ for each additional text message. if she owes $13.00$⁢
    8·1 answer
  • Christian spends a significant amount of his time at work performing tasks such as distributing work among his subordinates and
    15·1 answer
  • It is unlawful in the state of florida for __________ to operate a motor vehicle without a safety belt.
    12·1 answer
  • inflation can be measured by the a. percentage change in the price of a specific commodity. b. percentage change in the consumer
    15·1 answer
  • Alcott's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not eff
    15·1 answer
  • When completing the​ three-step writing​ process, a common rule is to use​ ________ percent of your time for​ planning, ________
    6·2 answers
  • Candonia has a comparative advantage in the production of , while lamponia has a comparative advantage in the production of . Su
    15·1 answer
  • XYZ Corporation produces and sells 10,000 units of Product X each month. The selling price is $40 per unit, and variable expense
    13·1 answer
  • Liana Amiri (single with no dependents) has the following transactions in 2021: AGI (exclusive of capital gains and losses) $540
    10·1 answer
  • What's it called when you contact the public with unsolicited offers via a multitude of types of communication and in high frequ
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!