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Sergio [31]
3 years ago
8

The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is

the net present value
Business
1 answer:
kobusy [5.1K]3 years ago
7 0

Answer: $‭20,358.4‬0

Explanation:

Find the present value of the $16,000 for the 8 years. This is an annuity so;

Present value = 16,000 * Present value interest factor of annuity, 8 years, 10%

= 16,000 * 5.3349

= $‭85,358.4‬0

Subtract cost;

= ‭85,358.4‬0 - 65,000

= $‭20,358.4‬0

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Answer:

Borrow $6,300.

Explanation:

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This gives a positive balance of (10,100 + 31,900 - 38,300) $3,700 and

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3 years ago
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4 years ago
In 2019, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The
Lady_Fox [76]

Answer:

FUTA tax due from the corporation is $108

 

Explanation:

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Paid under State Unemployment Tax by the employer is = (7000+7000+4000) x 5.40% =$972

How much FUTA tax is due from Willow Corporation for 2019?

Credit of tax paid in State Unemployment Tax is availabe for FUTA tax of 6%, thus FUTA due will be:

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5 0
3 years ago
The simple rate of return focuses on accounting net operating income rather than on cash flows. Group starts
jeka94

Simple returns focus on accounting for net operating income, not cash flow. The simple method of revenue focuses on cash flow rather than accounting for net operating income.

A simple rate of return is calculated by subtracting the initial value of the investment from the current value and dividing it by the initial value. To output as%, multiply the result by 100.

Under the simple rate of return method, a dollar you receive 10 years later is considered to be worth the $ 1 you receive today. Therefore, the simple yield method can be misleading if the alternative cash flow patterns under consideration are different.

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brainly.com/question/735261

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<em>Your question is incomplete. please read below to find the full content.</em>

The Simple Rate Of Return Focuses On Accounting Net Operating Income Rather Than On Cash Flows.

A) TRUE

B) FALSE

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2 years ago
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Vinil7 [7]

Answer:

Stockholders

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Stockholders are the owners of a company.  As owners , stockholders have voting rights in the company.  Shareholder elects directors who represent them on the board of directors. Each share is equivalent to one vote.  The board members recruit top management of the company. The board provides policy guidelines, makes critical decisions, and supervises senior management.

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