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
anzhelika [568]
2 years ago
6

A new machine requires an investment of $630,000 and will generate $100,000 in cash inflows for 7 years, at which time the salva

ge value of the machine will be $130,000. Using a discount rate of 10%, the net present value of the machine is $_________
Business
1 answer:
Orlov [11]2 years ago
4 0

Answer:

$-76,447.56

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 Y0 = -630,000

Cash flow in Y1 - Y6 = 100,000

Cash flow in Y7 = 100,000 + 130,000

I = 10%

npv = $-76,447.56

To find the NPV using a financial calculator:

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  

You might be interested in
Exercise 14-04 a-c Bonita Company reports the following costs and expenses in May. Factory utilities $16,000 Direct labor $72,70
PilotLPTM [1.2K]

Answer:

Factory Overheads  $182,420

Manufacturing overhead $ 396,820

Product costs $396,820

Period costs $ 75,720

Explanation:

Bonita Company

Direct materials used 141,700

Direct labor $72,700

Factory Overheads  $182,420

Factory utilities $16,000

Depreciation on factory equipment 14,250

Property taxes on factory building 2,600

Indirect factory labor 53,500

Indirect materials 85,000

Factory repairs 2,970

Factory manager’s salary 8,100

Manufacturing overhead $ 396,820

Product costs $396,820

Advertising 15,600

Office supplies used 3,420

Sales salaries 50,000

Depreciation on delivery trucks 4,900

Repairs to office equipment 1,800

Period costs $ 75,720

Manufacturing Costs are costs used in the manufacture of products.

Product Costs = Direct materials + Direct Labor + Manufacturing Overheads

Period Costs include Marketing and Selling Expenses , Administrative Expenses.

5 0
2 years ago
Select the correct answer.
GrogVix [38]

Answer:

A

Explanation:

trust me it is

7 0
3 years ago
A successful quality strategy begins with
creativ13 [48]

Answer: An organization that starts and builds quality.

Explanation: To have a successful quality strategy, an organization needs to build and instill quality in their employees. When an organization promotes and maintains a quality environment for their workers, they are more likely to have a higher level of output quality.

3 0
2 years ago
on september 1, best company began a contract to provide services to dilwood company for 6 months, with the total of $10800 paym
Lelu [443]

Answer:

Fee Receivable$7,200

             To Service Fees Earned $7,200

(Being the service fess earned is recorded)

Explanation:

Th adjusting entry is shown below:

Fee Receivable$7,200

             To Service Fees Earned $7,200

(Being the service fess earned is recorded)

For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues

Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31

= $10,800 × 4 months ÷ 6 months

= $7,200

7 0
3 years ago
From a vantage point very close to the track at a stock car race, you hear the sound emitted by a moving car. You detect a frequ
yuradex [85]

Answer:

The speed of the car is 67.77 m/s and it is moving away from the observer.

Explanation:

The apparent frequency is given as

f' = f\dfrac{ [v - vo]}{ [v - vs]}

Here

o is the  observer

s is the source which is car

v is the speed of  sound  = 343 m/s

f = true frequency emitted by the car (when stationary)

f ' = 0.835 f

so

f' = f\dfrac{ [v - vo]}{ [v - vs]}\\0.835 f= f\dfrac{ [v - vo]}{ [v - vs]}\\0.835 = \dfrac{ [343 - 0]}{ [343 - vs]}\\0.835=\frac{343}{343-x}\\x=-67.77 m/s

The speed of the car is 67.77 m/s and it is moving away from the observer.

5 0
3 years ago
Other questions:
  • On January 3, 2014, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty
    10·1 answer
  • Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price
    8·1 answer
  • An individual client purchased his residence 5 years ago for $200,000. For 3 of the last 5 years, the client rented out the prop
    12·1 answer
  • Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from
    14·1 answer
  • Closed the credit balance of $188,000 (from net income) in the retained earnings income summary account.
    6·1 answer
  • The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing t
    7·1 answer
  • In the previous year, a company had revenues of $500,000, project overhead of $40,000 and company overhead of $75,000. The compa
    5·2 answers
  • The board of directors of Chestnut Inc. approved a restructuring plan on November 1, Year 1. On December 1, Year 1, Chestnut pub
    12·1 answer
  • If the expected rate of return on the market portfolio is 12% and T-bills yield 6%, what must be the beta of a stock that invest
    12·1 answer
  • Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as ______ properties.
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!