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Softa [21]
3 years ago
13

Sam Weller is thinking of investing $70,000 to start a bookstore. Sam plans to withdraw $15,000 from the business at the end of

each year for the next five years. At the end of the fifth year, Sam plans to sell the business for $110,000 cash. At a 12% discount rate, what is the net present value of the investment?A. $54,075B. $62,370C. $46,445D. $70,000
Business
1 answer:
Norma-Jean [14]3 years ago
8 0

Answer:

C. $46,445

Explanation:

The net present value is the value of the after tax cash flows when the amount invested is substracted from it.

Using the financial calculator to find the NPV:

Cash flow for year zero =$ -70,000

Cash flow for each year from year 1 - 4= $15,000

Cash flow for year 5 = $125,000

I = 12 %

NPV = $46,445

I hope my answer helps you.

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The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal
deff fn [24]

Answer:

1.$134,000

2.$183,800

3.$124,050

Explanation:

1. Computation for the total amount of the costs that are direct costs of the Apparel Department

Apparel Department cost of sales - Evendale store $116,100

Apparel Department sales commission-Evendale store $7,950

Apparel Department manager's salary-Evendale store $9,950

Total direct costs for the Apparel Department

$134,000

2. Computation for the total amount of the costs that are direct costs of the Evendale Store

Apparel Department cost of sales - Evendale store $116,100

Store managers salary - Evendale store $18,300

Apparel Department sales commission-Evendale store $7,950

Store utilities - Evendale store $17,800

Janitorial costs - Evendale store $13,700

Apparel Department manager's salary-Evendale store $9,950

Total direct cost for the Evendale store $183,800

3. Computation for the total amount of the Apparel Department's direct costs that are variable costs with respect to total departmental sales

Apparel Department cost of sales - Evendale store $116,100

Apparel Department sales commission-Evendale store $7,950

Total variable cost-Apparel department $124,050

6 0
3 years ago
Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pound
Rasek [7]

Answer:

Total= $4.33

Explanation:

Giving the following information:

Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pounds; the allowance for spoilage is 0.1 pounds. The purchase price is $4 per pound, but a 2% discount is always taken. Freight costs are $0.15 per pound and receiving and handling costs are $0.10 per pound.

Purchase price= 4*0.98= 3.92

Allowance for waste= (0.03*3.92)= 0.1176

Allowance for spoilage= (0.01*3.92)= 0.0392

Freight= 0.15

Receiving and handling= 0.10

Total= $4.33

4 0
3 years ago
Total asset turnover is computed as: multiple choice Average sales divided by average total assets Net sales multiplied by avera
Korolek [52]

Overall asset turnover is computed as internet sales divided via common total assets.

Asset turnover is the ratio of overall sales or revenue to average property. This metric facilitates buyers to apprehend how efficaciously groups are using their assets to generate income. traders use the asset turnover ratio to examine similar corporations inside an equal area or organization.

A higher ratio is favorable because it suggests a more green use of belongings. Conversely, a decreased ratio suggests the organization isn't using its belongings as effectively. This is probably because of extra production capability, terrible series strategies, or bad stock control.

The asset turnover ratio is the ratio between the cost of a business enterprise's sales or revenues and the fee of its property. it's far an indicator of the efficiency with which an employer is deploying its assets to provide sales. as a consequence, the asset turnover ratio can be a determinant of an organization's performance.

Learn more about asset turnover here: brainly.com/question/15413308

#SPJ4

6 0
2 years ago
Respecting team members means agreeing with everything they think. True False
vovangra [49]

false: it means you dont have to agree with them but you have to respect their opinion

7 0
3 years ago
Read 2 more answers
State two differences between savings and investment
Lana71 [14]

Answer:

Savings: is setting aside money so you dont need to spend your money for anything, only for emergeincies. Investment: is when you are buying stocks or bonds your are making an investment.

7 0
3 years ago
Read 2 more answers
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