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
Stels [109]
3 years ago
5

Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Proje

ct 2 has a computed net present value of $135,000 over an eight-year life. Project 1 could be sold at the end of eight years for a price of $8,000. (a) Using the present value tables in Exhibits 2 and 5, determine the net present value of Project 1 over an eight-year life, with residual value, assuming
Business
1 answer:
mario62 [17]3 years ago
6 0

Answer: $126,613

Explanation:

Net Present value of Project A is:

= Present value of $50,000 annuity + Present value of residual value - Initial investment

Present value of $50,000 annuity:

= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate

= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%

= $248,382

Present value of residual value:

= 8,000 / ( 1 + 12%)⁸

= $3,231

Net present value

= 248,382 + 3,231 - 125,000

= $126,613

You might be interested in
Which of these is most likely an opportunity cost associated with joining the
tresset_1 [31]

Answer:

D. A smaller chance to pursue other interest.

Explanation:

Opprotunity cost is when you give up something to gain something else. So by joining the school choir you are giving up the opprotunity to pursue another elective such as Art or Science club.

Please mark brainliest or click the thanks button.

Yours truly!

8 0
3 years ago
Keith is a trainer for a new computer software company and is responsible for teaching people the skills required to use the var
BaLLatris [955]

Answer:

To demonstrate  the usage of company products and train employees.

Explanation:

The main purpose of the presentations that Keith is providing to the employees of the software company is to impart complete knowledge of the products to the employees. It is of utmost importance that each employee has complete understanding of the products and services provided by the company and know how to use them.

If any employee fails to understand the usage of the product, he will automatically fail to bring progress to the company as a whole.

7 0
3 years ago
Indiana jones goes off to foreign lands in search of artifacts hidden in dangerous places and guarded by fierce protectors. dr.
Sidana [21]
He would be described as “A sensation seeker”
3 0
3 years ago
The Corbit Corp. sold merchandise on account for, $7,200. Corbit Corp. utilizes the periodic inventory system. The cost of the m
alisha [4.7K]

Answer:

Debit Accounts receivable 7,200

Credit Sales 7,200

Debit Cost of Merchandise Sold 3,950

Credit Merchandise Inventory 3,950

Explanation:

When Corbit corps sells merchandise on account it means that cash was not received for the transaction. So we debit accounts receivable (an asset account to indicate increase in amount receivable by us). A credit is now passed to sales to show increased sales.

On merchandise we debit cost of merchandise sold and credit Merchandise inventory (an asset account is credited to indicate reduction) to indicate merchandise has reduced.

6 0
3 years ago
A purchase of a vehicle for cash would have which effect on the accounting equation? A. Total asset amount remains the same. B.
AVprozaik [17]
The correct answer to your question is letter A. Total asset amount remains the same.
4 0
3 years ago
Other questions:
  • A T-bill that is 290 days from maturity is selling for $96,040. The T-bill has a face value of $100,000.
    8·1 answer
  • Can someone please help? economics
    7·1 answer
  • The following transactions pertain to year 1, the first-year operations of Solomon Company. All inventory was started and comple
    10·1 answer
  • How many types of bonds and what are they. ​
    15·1 answer
  • Using this feature will fit an image to the size of an image frame.
    6·1 answer
  • The opportunity cost to a consumer who smokes cigarettes is the:
    8·1 answer
  • For these reasons, us.law should mandate minimum vacation time.is that a fact or opinion.​
    14·1 answer
  • Mobile devices are perfect for targeting ads at specific consumers because ______.
    10·2 answers
  • Define the three economic aspects of monopoly and the three economic effects of oligopoly?
    11·1 answer
  • The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackis
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!