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
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.

You might be interested in
A vendor sells hot dogs at $17.00 /piece. For every hot dog he spends $11.23 in the raw material. Additionally he spends $0.90 f
Gemiola [76]

Answer: $4.87

Explanation:

The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.

Contribution margin = Selling price - variable costs

= Selling price - Raw materials - packing costs

= 17 - 11.23 - 0.90

= $4.87

8 0
3 years ago
Identify the correct order of the four steps used to prepare a production cost summary (report). 1)Summarize the cost flow of ph
Veronika [31]

Answer:

The answer is "Option C".

Explanation:

The Costs of production relate to the price of a company producing or producing a service, which can include the range of expenditures, like labor, manufactured goods, supplies of items, and expenses. It has mainly four steps that can be defined as follows:

  • Complete the physical unit flow.
  • Measure the production unit's equivalent.
  • Compare the value per unit for output equivalent.
  • Assign costs to finished units and manufactured units.

5 0
2 years ago
You are a member of a project team revising your company’s ethics policy. The team has representatives from four divisions: Soft
Veseljchak [2.6K]

Answer: ) She wants to present a new draft for a new policy.

Explanation:

The options to the question are:

A) She wants to present a new draft of the ethics policy.

B) The other members of the team are ineffective.

C) She is concerned that her work isn’t being valued.

The most important message that my colleague is trying to deliver is that she wants to present a new draft for a new policy.

This can be seen from the passage where she suggested that the team should review a new draft of the ethics policy. She further highlighted the reason for that and she said she believes the policy will have positive effects on the team and on the organization as a whole.

4 0
2 years ago
At 4 percent inflation, how much time will it take for prices to double
Delvig [45]

Answer:

eighteen years is the correct answer.

Explanation:

5 0
3 years ago
Leah has just handed in a major required report to her professor, and after careful scrutiny, the professor finds numerous insta
Sergio039 [100]

Answer:

The correct answer is letter "A": True.

Explanation:

A principles-based approach aims to apply regulations that have been implemented. The practice consists of taking a strict set of rules and enforcing them in different ways according to the problematic situation. It could be flexible but eventually ends making the rule to be effective.

8 0
3 years ago
Other questions:
  • Why are people so dramatic (PLEASE HELP HAVING TROUBLE UNDERSTANDING) *i just chose a subject *
    7·2 answers
  • Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from variou
    6·1 answer
  • The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of f
    6·1 answer
  • One way to learn about your talents, skills, and personal qualities is to:
    14·2 answers
  • Month Income Price Coke Price Pepsi Q^D Coke Q^D Pepsi
    11·1 answer
  • The Club Auto Parts Company has just recently been organized. It is expected to experience no growth for the next 2 years as it
    15·1 answer
  • May 24 Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000. Sept. 30 Received $6,000 from O
    10·1 answer
  • BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare
    13·1 answer
  • Match the treatment of unrealized gains and losses on debt investments existing at the time of transfer between investment categ
    11·1 answer
  • Which method would interest groups most likely use to help shape public policy? enacting regulations to enforce their goals hiri
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!