Answer:
NPV= $31,808.91
Explanation:
Giving the following information:
Io= -$150,000.
The operating costs:
Year 1= $5,000
Year 2= $6,000
Year 3= $7,000
The benefits:
Year 1= $80,000
Year 2= $90,000
Year 3= $70,000
To calculate the Net Present Value (NPV) we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Io= -150,000
Cf1= 80,000 - 5,000= 75,000/1.04= $72,115.39
Cf2= 90,000 - 6,000= 84,000/1.04^2=$77,662.72
Cf3= 70,000 - 7,000= 63,000/1.04^3= $56,006.77
NPV= $31,808.91
The popularity of a new type of jeans
hope this helps!
(:
Answer:
The amount of $71,760 , is offered by the company for the stadium naming rights.
Explanation:
As the total cost for the sponsorship is $78,000 but the cost has 8% revenue for the naming sponsorship. Therefore,
= Amount × % of revenue
= $78,000 × 8%
= $6,240
In order to compute the amount which is offered to pay for the stadium rights, the revenue amount to be deducted from the administrative cost:
= Cost - Revenue
= $78,000 - $6,240
= $71,760
Answer
The answer and procedures of the exercise are attached in the images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.
