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eimsori [14]
3 years ago
8

Suppose an initial investment of $80 will return $30/year for three years (assume the $30 is received each year at the end of th

e year).
At a discount rate of 25%, this investment ________ profitable.
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer:

not profitable

Explanation:

The computation of investment profitable is shown below:-

The present value of the return is

= 30 ÷ 1.25 + 30 ÷ 1.25^2 + 30 ÷ 1.25^3

= 24 + 19.2 + 15.36

= 58.56 < 80

Therefore, the present value for the return is lower than the initial investment so, the investment is not profitable and hence the same is not to be considered

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Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase
ioda

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

= 0.4

= 40%

Year 1 depreciation will be:

= 76000 × 40%

= 76000 × 0.4

= $30400

Year 2 Depreciation will be:

= ($76000 - $30400) × 40%

= $45600 × 40/100

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= $18240

7 0
3 years ago
What is the importance of effective communication to a successful life
ICE Princess25 [194]

1) Skills is the ability to listen.

2) Understand the mission and goals of their company and what their responsibilities are.

4 0
3 years ago
What is one way learning to budget now will affect your future?
bagirrra123 [75]

Answer:

not saving up

Explanation:

I dont have one

5 0
3 years ago
Suppose you are the Purchasing Manager for a large chain of restaurants in the United States, and you need to make your semiannu
mrs_skeptik [129]

Answer with Explanation:

Requirement 1.

The US import will increase by $1,500,000 due to purchase of indian tea product and this import of tea would result in increase of capital outflow as the Net export particular to importation is negative hence capital outflow is genuine effect.

Requirement 2.

The Net exports can be calculated as under:

Net Exports = Exports - Imports  = 0 - $1,500,000 = - $1,500,000

The US Net Exports would decrease by $1,500,000.

4 0
3 years ago
A judge requires Harry to make a payment to Sally. The judge says that Harry can pay her either $10,000 today or $12,000 two yea
Stells [14]

Answer:

d. 9 percent

Explanation:

After 2 years the value of $10,000 at present time =

$10,000 * (1 + x / 100)^2 = $12,000

(1 + x / 100)^2 = 12,00 / 10,000

(1 + x / 100)^2 = 1.2

The square root of 1.2 is 1.0954

(1 + x / 100) = 1.0954

x = 9.54

9%( Approximately.)

7 0
3 years ago
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