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
Eva8 [605]
3 years ago
5

Beyer Company is considering the purchase of an asset for $185,000. It is expected to produce the following net cash flows. The

cash flows occur evenly within each year. Assume that Beyer requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 87,000 $ 46,000 $ 72,000 $ 132,000 $ 41,000 $ 378,000 a. Compute the net present value of this investment. b. Should Beyer accept the investment
Business
1 answer:
Y_Kistochka [10]3 years ago
6 0

Answer:

a. $87,750.56

b. Accept the investment, because it gives a positive net present value.

Explanation:

the net present value is the today`s value of future cash flows. We determine the net present value by discounting the future cash flow using the required return or the cost of capital.

Using a Financial calculator this can be determined as :

- $185,000 CF0

$ 87,000    CF 1

$ 46,000    CF 2

$ 72,000    CF 3

$ 132,000   CF 4

$ 41,000     CF 5

i/yr = 12%

Then, SHIFT NPV gives $87,750.56

We accept an investment only and only if it has a positive net present value.

You might be interested in
Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 6.2 percent, a par value of $1,000, and a curr
densk [106]

Answer:

The answer is 5.47 percent

Explanation:

Firstly, we find coupon payment (PMT).

it can be gotten from the price (present value) of bond formula:

PV = PMT/(1+r)^1 + PMT/(1+r)^2 ....... PMT + FV/(1+r)^n

N = 10.5 years

1/Y = 6.2 percent

PV = $945

PMT = ?

FV = $1000

Using a Financial calculator to input all the variables above,

Annual PMT = $54.72

Semi annual will be $54.72/2= $27.36

Coupon rate is Annual PMT /par value

= $54.72/1000

0.0547 or 5.47 percent

7 0
3 years ago
8th business day of this month
Sonbull [250]
Tuesday the twelfth is the answer. A business day is essential a work day, which is Monday through Friday. 
4 0
3 years ago
Product/service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or
amm1812

Product/service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities.

A company's offers are shaped through the process of product service management, also known as product/service management, in response to customer demand brought on by changes in the marketplace. A product service manager (PSM) foresees consumer needs and then directs the creation of products to address them.

Discovering new product opportunities, maintaining current products, and getting rid of items that have turned into liabilities are all part of product service management. advantages

The following are some advantages of product service management:

  • Provides customers with things they desire to buy, hence improving a business's earnings.
  • With novel and cutting-edge items, it can increase the number of customers
  • When products are properly managed, there is less risk of failure and more potential for success.

The market opportunity is unrealized market potential that enables companies to take advantage of untapped markets.

Learn more about Product/service management here:

brainly.com/question/28598560

#SPJ4

3 0
1 year ago
New Coffee Company, LLC uses JIT (just-in-time) logistical supply methods. This indicates that the company doesn't really keep l
Leona [35]

Answer:

B) Inventory turnover ratios

Explanation:

Inventory turnover measures how many times a business sells and replaces its merchandise or materials inventory during an accounting period, usually a year.

One of the basic goals of JIT is to lower the total inventories in a company, therefore increasing the inventory turnover ratio. This reduces the company's operating costs.

4 0
3 years ago
Since 70 percent of preferred dividends received by a corporation is excluded from taxable income, the component cost of equity
dusya [7]

Answer:

The answer is False

Explanation:

Since the 70 percent of preferred dividends received by a company is excluded from taxable income, the component cost of equity for a corporation which pays half of its revenue out as a common dividends and half as preferred dividends should ,technically be.

3 0
3 years ago
Other questions:
  • Cash $38,600 Short-term investments 9,000 Accounts receivable 40,000 Inventory 240,000 Prepaid expenses 17,400 Accounts payable
    14·1 answer
  • Most state and local income taxes are either... (insert big wrinkle response here).
    7·2 answers
  • A management concept based on an understanding of the changing wants and needs of customers, and which leads to flexible product
    14·1 answer
  • Well organized buisiness writing uses short sentences and paragraphs. True or False?
    8·1 answer
  • If the Canadian dollar to U.S. dollar exchange rate is 1.21 and the British pound to U.S. dollar exchange rate is 0.68​, what mu
    13·1 answer
  • The stockholders' equity of Oriole Company at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000
    11·1 answer
  • Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
    9·1 answer
  • Bonita Industries had the following bank reconciliation at March 31, 2020: Balance per bank statement, 3/31/20 $74600 Add: Depos
    9·1 answer
  • You receive a part time job in which you are paid $10 per hour on weekdays and you receive $12 per hour
    5·1 answer
  • Benjamin jackson bought 100 shares of xyz two years ago at $10 per share. the stock paid a $0.50 dividend each year and he sold
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!