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
umka21 [38]
3 years ago
6

Easton Corporation is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected i

nitial cost of $1,000,000. It has an expected life of six years, with no salvage value, and is expected to generate annual cost savings of $250,000. Based on Easton Corporation's analysis, the project has a net present value of $57,625.
1. Refer to Rhodes Corporation. What discount rate did the company use to compute the net present value? Present value tables or a financial calculator are required.
a. 10 %
b. 11 %
c. 12 %
d. 13 %
2. Refer to Rhodes Corporation. What is the project's profitability index?
a. 1.058
b. .058
c. .945
d. 1.000
3. Refer to Rhodes Corporation. What is the project's internal rate of return? Present value tables or a financial calculator are required.
a. between 12.5 and 13.0 percent
b. between 11.0 and 11.5 percent
c. between 11.5 and 12.0 percent
d. between 13.0 and 13.5 percent
Business
1 answer:
Novay_Z [31]3 years ago
6 0

Answer and Explanation:

1. The discount rate is

If we go through the options

like we assume 10%

So, the net present value is

= ($250,000 × 4.3553) - $1,000,000

= $1,088,825 - $1,000,000

= $88,825

Now if the discount rate is 11%

So, the net present value os

=  ($250,000 × 4.2305) - $1,000,000

= $1,057,625 - $1,000,000

= $57,625

So the net present value is $57,625

2. The profitability index is

= ($1,000,000 + $57,625) ÷ ($1,000,000)

= 1.058

3. The internal rate of return is

It is 12.98% that lies between 12.5% and 13%

You might be interested in
You recently bought a used car and it breaks down. You take it to the repair shop, which will charge $400. You don’t have that m
notka56 [123]

Answer:

My Guest is P2P or Debit Card

Explanation:

3 0
2 years ago
Match each Act to its purpose.
Marta_Voda [28]

Credit CARD Act

↓

Protects consumers from unfair credit card billing practices.

Patriot Act

↓

Prevents, detects, and prosecutes international money laundering

Identity Theft and Assumption Deterrence Act

↓

Criminalizes identity theft

Dodd-Frank Act

↓

Educates consumers so that they can protect themselves from unfair practices.

4 0
2 years ago
Changes in the quality of a good Group of answer choices do not present a problem in the construction of the consumer price inde
mestny [16]

Answer: Consumer price index

Explanation: A Consumer Price Index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically

6 0
3 years ago
Please help fast!! Will give brainliest :)
Nutka1998 [239]
Questin 1. is A so is question 2 and 3 it looks like
8 0
3 years ago
Read 2 more answers
Yellow, Inc., sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of
mario62 [17]

Answer:

(C) $600,000

Explanation:

4 0
2 years ago
Other questions:
  • What is income not used for consumption called?
    8·1 answer
  • Consider the two savings plans below. Compare the balances in each plan after 7 years. Which person deposited more money in the​
    13·1 answer
  • Decision-Making Styles. When making decisions, individuals often display a personal style that reflects how they perceive what i
    5·1 answer
  • PLEASE HELP I'M IN A BIG RUSH
    5·1 answer
  • Quarry Mining Inc. and Riverside Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with Quarry’s represe
    8·1 answer
  • What is true about credit unions?
    13·2 answers
  • David, a payroll clerk, came up with an idea for processing payroll more efficiently and presented it to the Human Resources Dep
    14·1 answer
  • Kela Corporation reports net income of $470,000 that includes depreciation expense of $83,000. Also, cash of $44,000 was borrowe
    14·1 answer
  • Read the following situation and decide whether or not anyone in the situation commits sexual harassment. Justify your judgement
    9·2 answers
  • 7. Farmer sells flour to a baker for RM2. The baker uses the flour to make bread, which is sold for RM3. What is the total contr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!