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aleksandr82 [10.1K]
3 years ago
8

Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be r

eceived at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.
Business
1 answer:
UNO [17]3 years ago
4 0

Answer: E. $36,345

Explanation:

Net present value = Present value of inflows - Cost of equipment

The inflow is an annuity as it is a constant amount so is calculated as:

Present value of inflows = Inflow * Present value interest factor of an annuity, 10%, 4 years

= 39,700 * 3.1699

= $125,845.03

Net present value = 125,845.03 - 89,500

= $36,345.03

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Answer:

5%

Explanation:

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Required reserve= $30 million

Required reserve ratio= required Reserve/deposit

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Hence the required reserve ratio is 5%

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List THREE common aptitudes, attitudes, and skills of personal care services workers.
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In the underground city of Neverwhere, GDP is $15 trillion, consumption is $10 trillion, and government spending is $2.5 trillio
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Investment:

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8 0
3 years ago
Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.10 per share. If the required
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Answer:

PV = $78.46153 rounded off to $78.46

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Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Each
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See below

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