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4 years ago

Respas Corporation has provided the following data concerning an investment project that it is considering:

Business

1 answer:

Ber [7]4 years ago

4 0

Answer:

$462

Explanation:

The computation of the net present value is shown below:

= Present value of all year cash inflows by considering the salvage value - initial investment

where,

Present value of all year cash inflows by considering the salvage value is

= Annual cash flows × PVIFA factor for 4 years at 15% + Salvage value × discount rate at 4 year on 15%

= $54,000 × 2.855 + $11,000 × 0.572

= $154,170 + $6,292

= $160,462

And, the initial investment is $160,000

So, the net present value is

= $160,462 - $160,000

= $462

We simply applied the above formula to determine the net present value

Refer to the PVIFA table and discount factor table

This is the answer but the same is provided in the given option

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Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows:

anzhelika [568]

Answer:

$1.804 ; $1.7856

Explanation:

The computation is shown below:

The formula is presented below:

= Initial forecast + a × (Actual demand of last month - initial forecast of last month)

For November, it would be

=$1.83 + 0.1 × ($1.57 - $1.83)

= $1.83 - 0.026

= $1.804

For December, it would be

=$1.804+ 0.1 × ($1.62 - $1.804)

= $1.804 - 0.0184

= $1.7856

6 0

3 years ago

Cracker Jack, an American brand snack of caramel-coated popcorn and peanuts, has been in existence since 1896. The brand became

cluponka [151]

Answer:

A. Coupon.

Explanation:

A coupon is a ticket that has financial value when redeemed. A coupon is sometimes put as a free gift inside a product.

It is usually used as an advert strategy to get people to buy more products because if consumers know that they are likely to find a coupon inside each product of a particular brand they purchase, it will theoretically lead to more people buying the product in order to get the coupon.

This was the strategy used by Cracker Jack who sold brand snacks of caramel coated popcorn as it had a free prize inside every box which in turn made the product to become immensely popular.

7 0

3 years ago

A project will produce cash inflows of $5,400 a year for 3 years with a final cash inflow of $2,400 in Year 4. The project's ini

diamong [38]

Answer:

Net Present Value (NPV) is 506

Explanation:

See document attached. To get the net present value, we make a cash flow in excel.

At moment 0 we have the investment cost , in this case $13,400. From period 1 to period 4, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.

To get net present value, we use VNA formula.

=VNA(required rate of return; Net cash flow from moment 1 to moment 4 )+Net cash flow at moment 0

Download xlsx

6 0

3 years ago

A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, t

tino4ka555 [31]

Answer:

a. Journal entries

Particulars Debit Credit

Revenue: Addition to permanent $510,000

endowment

Revenue investment income $48,000

Revenue : increase in fair value $8,000

of investment

Expenditure - subscription $39,500

Fund balance $526,500

b. Statement of revenue , expenditure , and changes in fund balance

Particulars Amount

Revenue

Addition to permanent endowment $510,000

Investment income $48,000

Increase in fair value of investment $8,000

Total revenue $566,000

Expenditure

Library subscription $-39,500

Net change in fund balance $526,500

Beginning fund balance 0

Ending fund balance $526,500

c. Balance sheet

Assets

Cash $8,500

Investments $5,18,000

Accrued interest receivable $2,000

Total assets $528,500

Liabilities and fund balance

Liabilities

Accounts payable $2,000.00

Fund balance

Non spendable permanent $510,000

fund principal

Assigned to library $16,500

($526,500 - $510,000)

Total fund balance $526,500

Total liabilities and fund balance $528,500

3 0

3 years ago

paano mailalahad sa madla ang nanging resulta ng iyong ginawang produkto o mga pangyayari sa iyong kompanya

notsponge [240]

Answer:

how to present to the public the results of your product or events in your company

8 0

3 years ago