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Eva8 [605]
2 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]2 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.

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The most rigorous test of a firm's ability to pay its short-term obligations is its?
lapo4ka [179]

The working capital ratio is a measurement of a company's short-term capability of paying its financial obligations.

The working capital turnover ratio measures how efficaciously a business makes use of its operating capital to supply sales. A better ratio indicates greater efficiency. In preferred, an excessive ratio can assist your employer's operations to run greater easily and limit the want for added funding.

The working ratio measures a corporation's potential to recover running expenses from annual sales. It's miles calculated by taking general annual fees, aside from depreciation and debt-related charges, and dividing it by the yearly gross income.

The current ratio, also known as the working capital ratio, gives a short view of an enterprise's financial health. You could calculate the current ratio by taking contemporary assets and dividing that discern by means of current liabilities. A ratio above 1 way current belongings exceed liabilities.

Learn more about business here: brainly.com/question/24448358

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6 0
2 years ago
How does the budget process make fiscal policy difficult to implement? (lo32-3)?
Keith_Richards [23]
The budget process makes fiscal policy difficult to implement because 
<span>---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.</span>
7 0
3 years ago
If GNP is​ $600 billion, receipts of factor income from the rest of the world are​ $50 billion, and payments of factor income to
exis [7]

Answer:

$580 billion

Explanation:

Given that

GNP = $600 billion

Receipts of factor income from the rest of the world = $50 billion

Payments of factor income to the rest of the world = $30 billion

So, The computation of the GDP is shown below:

= GNP - Receipts of factor income from the rest of the world + Payments of factor income to the rest of the world

= $600 billion - $50 billion + $30 billion

= $580 billion

5 0
3 years ago
Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more​ risky,
Naya [18.7K]

Answer:

The correct answer is: "People are rational".

Explanation:

Economics is the study of people's rational options when faced with scarcity and uncertainty, and that happens to all of us. The problem is that people are hardly rational, because our nature often acts against our economic interests.

Not long ago and until today, the work is done during the day, that is, Monday through Friday; A reality for most people. However, much of the economic activity, both ours and the entire world, operates 24/7. Today, millions of workers have unpredictable schedules. This is especially common in jobs related to services and retail sales. For example, many chain stores use personnel algorithms with traffic and apparently this makes sense, but shareholders always expect efficient efforts to maximize profits. If not, however difficult it is, particularly for workers, to get another job.

6 0
3 years ago
Suppose a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers i
wolverine [178]

Answer:

4/11 and 6/15 dressers.

Explanation:

Absolute advantage is the ability of a country to produce more of a product given the same resources than another country per unit time. It also applies when a country is able to produce same amount of goods with another country given less inputs.

So a country that produces more goods uses a more efficient process to get more output.

In this scenario a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers in a day. Canada has absolute advantage in producing lamps and dressers, so importing these items will not be beneficial.

To get a balance where both countries will benefit a lamp will have to go for a ratio of each countrie's product to the opportunity cost.

That is for Peru to produce 4 dressers it will have opportunity cost of 11 lamps. So the ratio is 4/11.

Also for Canada to produce 6 dressers it will have opportunity cost of 15 lamps. So the ratio is 6/15.

Lamp should trade for between 4/11 to 6/15 dressers for both countries to benefit.

4 0
2 years ago
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