Answer:
NPV = (53,222.44)
Explanation:
Net fixed asset 345,000
Working capital
160,000 inventory + 35,000 Ar = 195,000
short term deb (110,000)
net working capital 85,000
Total investment 430,000
salvage value 345,00 x 25% = 86,250
release of the working capital 85,000
Cash flow at end of project 171,250
annual cash flow
sales 550,000
cost (430,000)
depreciation 69,000
EBT 51,000
tax expense 35%
(17,850)
net income 33,150
+ dep 69,000
cash flow 102,150
Now we calculate the present value of the net cash flow and the present alue fothe end of the project
C 102150
time 4
rate 0.15
PV $291,636.04
Principla (sum of salvage and released Working capital 171,250.00
time 5.00
rate 0.15
PV 85,141.52
NPV = 291,636.04 + 85,141.52 - 430,000 = (53,222.44)
Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Flying Car
Cash flow in year 0 = -$200,000
Cash flow in year 1 = 50,000
Cash flow in year 2 = 50,000
Cash flow in year 3 =80,000
Cash flow in year 4 =100,000
IRR = 13%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
A company issued 115 shares of $100 par value
<span> Common stock value
= $12,500 </span>
Total
amount of paid-in capital = ?
Multiply
the shares with amount par value =
Amount of shares = 115 x 100 = $11,500
Total amount of paid-in capital = common stock
value - total amount of shares = $12,500 - $11,500
= $1000
So, total amount paid in capital is $1000.
Answer:
$30,870
Explanation:
Sales per unit: 67,200/3,200 = 21
variable expenses per unit : 38,976/3200 = 12.18
.......................
Sales 3500 unit: 21*3500 = 73,500
Variable expenses 3500 units : 12.18*3500 = 42,630
Contribution margin = Sales-Variable expenses = 73,500-42,630
=$30,870
