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Svetradugi [14.3K]
3 years ago
13

Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000

per year for four years and no salvage value. At a discount rate of 10 percent the projects net present value is
Business
1 answer:
svp [43]3 years ago
5 0

Answer:

$3,995.96

Explanation:

Cash flow summary for the project as entered in financial calculator is :

- $91,100 CF0

$30,000 CF1

$30,000 CF2

$30,000 CF3

$30,000 CF4

i/yr = 10 %

therefore,

Shift NPV gives a net present value of $3,995.96

thus,

At a discount rate of 10 percent the projects net present value is $3,995.96

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LO 3.2A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per
slavikrds [6]

Answer:

$50

Explanation:

The contribution margin per unit of any company's product  can be calculated using the following formula:

Contribution margin per unit=Sale price per unit- Variable cost per unit

In this question

Sale price per unit=$80

Variable cost per unit=$30

Contribution margin per unit=80-30

                                            =$50

8 0
4 years ago
On February 1, 2018, Cue Company acquired 1,700 shares of its $1 par value stock for $54 per share and held these shares in trea
Marysya12 [62]

Answer:

The answer is:

April 10, 2019:

Dr Cash                               96,900

Cr Treasury stock              91,800

Cr Paid-in capital                5,100

(to record resell of 1,700 repurchase shares at $57)  

Explanation:

While the share was repurchased at $54 each; the Treasury stock account is debited at 54 x 1,700 = 91,800. Thus, when resell takes place, treasury stock account must be credited by 91,800.

Cash receipt is 57 x 1,700 = 96,900. Thus, this amount is debited in Cash Account.

The difference between the Dr Cash and Cr Treasury stock will Credited in to Paid-in Capital Account at the amount 5,100; which is also calculated as 1,700 x ( 57-54).

6 0
4 years ago
Chaz Denver Company has identified that the cost of a new computer will be $40,000, but with the use of the new computer, net in
Ludmilka [50]

Answer:

The formula for cash payback period is

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So in this case the initial investment is $40,000 and the cash flow increased by the computer is $5,000 so in order to find the cash payback period we will divide 40,000 by 5,000

40,000/5,000=8

The cash payback period is 8 years for the investment in the computer

In this case we ignored the depreciation expense as it is a non cash expense.

Explanation:

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Yes registered vet techs CANNOT work in research facilities

8 0
4 years ago
If you waited until late in life to start saving, what two things should you try to do?
klemol [59]
Get a job and save money now
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4 years ago
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