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
insens350 [35]
3 years ago
7

Park Co is considering an investment that requires immediate payment of $28.245 and provides expected cash inflows of 59,300 ann

ually for four years. Assume Park Co requires a 7% return on its investments.
What is the net present value of this investment?
Business
1 answer:
statuscvo [17]3 years ago
6 0

Answer:

The net present value of this investment is $3,256.06.

Explanation:

Note: There two errors in the figures provided in this question. They are they therefore fixed before answering this question as follows:

Park Co is considering an investment that requires immediate payment of $28,245 and provides expected cash inflows of $9,300 annually for four years. Assume Park Co requires a 7% return on its investments.

What is the net present value of this investment?

The explanation of the answer is now provided as follows:

The present value (PV) of the annual expected cash inflows of $9,300 can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV of the annual expected cash inflows = Annual expected cash inflows * ((1 - (1 / (1 + rate of returns))^number of years) / rate of returns) = $9,300 * ((1 - (1 / (1 + 0.07))^4) / 0.07) = $31,501.06

Net present value = PV of the annual expected cash inflows – Required immediate payment for the investment = $31,501.06 - $28,245 = $3,256.06

Therefore, the net present value of this investment is $3,256.06.

You might be interested in
In the context of the promotional mix, _____ attempts to persuade the buyer to accept a point of view.
Ket [755]

In the context of the promotional mix, personal selling attempts to persuade the buyer to accept a point of view. Personal selling is when a sales rep meets with a potential client to close the sale. Personal selling describes in person sales events that help promote the potential client while informing them of the product.

8 0
3 years ago
How many of the following statements about testing are true?
Rus_ich [418]

Answer:

The answer is E) Testing for controlling would most often involve scenario, integration and user acceptance testing.

Explanation:

In quality control, there involve a series of tests: Scenario testing, Integration testing and User acceptance testing.

Scenario testing is done once there a functionally that can be tested is developed. Under scenario testing, integration of functions is not done yet but it is possible to test the performance of the interface developed to ascertain how an end user will use it.

Integration testing involves testing the functionally of a combined unit assembled from individual units to see how well they perform as an integrated unit.

User acceptance testing is doe at the final phase to check how well it can perform in real time. This is meant to check user friendliness and ease of access.

8 0
3 years ago
Why did Krispy Kreme decide to manufacture all the donut mix and distribute it to the stores?
sveta [45]

Answer:

Option A

Explanation:

In simple words, Krispy Kreme Doughnuts, Inc. is an American doughnut company and coffeehouse chain owned by JAB Holding Company.  Krispy Kreme was founded by Vernon Rudolph, who bought a yeast-raised recipe from a New Orleans chef, rented a building in 1937 in what is now historic Old Salem in Winston-Salem, North Carolina, and began selling to local grocery stores.

They make all their dough of the product by themselves so that the neutrality regarding their consistency remains intact thought the country,

5 0
3 years ago
Jasper makes a $31,000, 90-day, 6.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is:__
pochemuha

Answer:

the amount of interest that is collected is $503.75

Explanation:

The computation of the amount of interest that is collected is shown below:

= Cash loan × number of days ÷ total number of days × rate of interest

= $31,000 × 90 days ÷ 360 days × 6.5%

= $503.75

Hence, the amount of interest that is collected is $503.75

This is the answer but the same is not provided in the given options

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
2 years ago
Select the correct answer.
Elanso [62]

Answer:

OA

Explanation:

kalasksksksksjdjdkdjdjdjkdjfnfnfgmgmg

4 0
3 years ago
Read 2 more answers
Other questions:
  • Members of mid-south petroleum distributors, a trade group, had trouble obtaining affordable pollution liability insurance. the
    11·1 answer
  • The Law of Demand is a rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship b
    6·2 answers
  • Haskell Motots common equity on the balance sheet totals $700million and the company has 35 million shares of common stockoutsta
    13·1 answer
  • If you believe in the ________ form of the EMH, you believe that stock prices reflect all relevant information, including histor
    15·1 answer
  • Many government? programs, such as unemployment? compensation, operate on a deficit during recessions and a surplus during perio
    6·1 answer
  • Bobcat Industrial Supply is considering a new project with estimated depreciation of $46,000, fixed costs of $39,000, and total
    7·1 answer
  • Residual Income The Commercial Division of Galena Company has operating income of $62,240 and assets of $228,000. The minimum ac
    6·1 answer
  • The added value that a certain product has by virtue of its brand name (in other words, the value of the product with a brand ma
    10·1 answer
  • By the time you turn 30 years old, what insurance do you expect to have?
    12·2 answers
  • Which athlete received the largest contract in the history of sports? mike trout lionel messi patrick mahomes lebron james.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!