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
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

You might be interested in
When a large supply of a product is available for sale, the price of the product will often
ankoles [38]

Answer:A

Explanation:When supply of a product goes up, the price of a product goes down and demand for the product can rise because it costs less.

5 0
2 years ago
Read 2 more answers
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________
omeli [17]

Answer:

b. investing activities

Explanation:

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.

Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.

<em>Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.</em>

4 0
3 years ago
Mutual savings banks are primarily regulated by
ziro4ka [17]

Mutual savings banks are primarily regulated by the states in which they are located.

 

<span>To add, a </span>mutual savings bank<span> is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund. From this fund claims, loans, etc., are paid. Profits after deductions are shared among the members.</span>

5 0
2 years ago
When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivab
liberstina [14]
The answer is that "<span>the change in accounts receivable is subtracted from net income".
</span>

<span>When the indirect method is used, the starting point is the net income and it is transformed to cash flows from operational actions by adding back losses and subtracting gains so that these quantities are removed.</span>

4 0
3 years ago
Choose one of the scenarios below and write a three-paragraph essay describing its effect on prices for food, housing, and oil.
Ray Of Light [21]
<span>The issue isn't black and white, a true answer is closer to the middle ground but to play devil's advocate I personally believe investors have a net positive effect on companies they keyword: invest in. Investments naturally leads to expansion and growth, that's always at least a main goal of anyone profitable company. It produces more jobs, but it can have the negative effect of curbing jobs in the name of cutting costs. A lasting problem is an overreliance in investment when companies don't have enough liquidity to continue running and is forced to sell assets valuable to the business in times of panics and reduced investment. Overall investors are in large part a reason for the success of modern corporations.</span>
4 0
3 years ago
Other questions:
  • Wesley's grandfather was a sharecropper, farming someone else's land. wesley's father was a farmer who farmed his own land. wesl
    6·1 answer
  • Dipboye's model of interviewer decision making implies which of the following? a. The interviewer controls what information is p
    14·1 answer
  • A(n) _____ is defined as a small number of people with complementary skills who hold themselves mutually accountable for pursuin
    9·1 answer
  • Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the f
    5·1 answer
  • Henderson is a local automobile salesperson. He earns 6% commission on all of his automobile sales. Last month, he earned $9,900
    5·1 answer
  • Which sentence or phrase in the passage suggests an action of integrity? On Monday, Mr. Blackwell, the creative head of an adver
    8·2 answers
  • Noah graduated with his B.A. in early childhood education in December, but public schools are not hiring until spring.
    13·1 answer
  • The supplies account had a beginning balance of $1,823. Supplies purchased during the period totaled $4,344. At the end of the p
    12·1 answer
  • Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30%.
    14·1 answer
  • Why does no one like me? i need answers.​
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!