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larisa [96]
3 years ago
9

Net present value LO P3

Business
1 answer:
maksim [4K]3 years ago
3 0

Answer:

a. initial outlay = -$820,000

net cash flows years 1 - 5 = $240,000

net cash flow year 6 = $340,000

discount rate = 12%

using a financial calculator:

NPV = $217,400.87

IRR = 20.55%

b. initial outlay = -$560,000

net cash flows years 1 - 7 = $150,000

net cash flow year 8 = $206,000

discount rate = 12%

using a financial calculator:

NPV = $207,763.43

IRR = 21.65%

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A tax placed on environmentally harmful activities or emissions in an attempt to internalize some of the externalities that may
zvonat [6]

Answer:

Green Tax

Explanation:

Based on the information provided within the question it can be said that the term that is being described in the question is called a Green Tax. Like mentioned in the question this refers to a tax that is placed on environmentally harmful activities or emissions and is done so with the intention of promoting environmentally friendly activities by punishing opposite actions.

4 0
3 years ago
he supplies account had a balance of $4,400 at the beginning of the year and was debited during the year for $2,400, representin
nexus9112 [7]

Answer:

$6,400

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

Supplies account is an asset account and has normal balance as debit balance. It increases with the purchase and decreases with the use of supplies.

Given:

Supplies (beginning) = $4,400

Purchased (supplies) = $2,400

Supplies (ending) = $400

Let supplies expense be x.

Now,

Supplies (ending) = Supplies (beginning) + Purchased (supplies) - Supplies expense

$400 = $4,400 + $2,400 - x

$400 = $6,800 - x

x = $6,800 - $400

Supplies expense = x = $6,400

6 0
3 years ago
You work as a tutor for ECON 102. You sell your services at $20/hr., and you can only tutor one person at a time. Suppose you cu
zlopas [31]

Answer:

a. We need more information to answer

Explanation:

In order to correctly answer his question we need more information. Economy is all about the margin, i.e. marginal revenue versus marginal cost. We are given the marginal revenue ($20/hr of tutoring services) but we are not given the marginal costs of tutoring. We only know that the cost of tutoring the first hour is $14, but what about the rest of the hours. Since you have 5 clients, you must be tutoring more than 1 hour per day. It is always easier to determine the marginal revenue since we determine it, while we cannot determine which costs we would like to incur.

Profits should be maximized when marginal revenue = marginal cost, but unless we know the marginal cost of tutoring the rest of the students we simply cannot answer this question.

5 0
3 years ago
O'Neill, Incorporated's income statement for the most recent month is given below. If sales in Store B increase by $30,000 as a
RUDIKE [14]

Answer: $5,000

Explanation:

The Contribution Margin (CM) given it $80,000 for Store B.

The Contribution margin ratio is;

= CM / Sales

= 80,000 / 200,000

= 40%

Given an increase of $30,000 in sales, increase in CM is;

= 30,000 * 40%

= $12,000

Traceable fixed costs for that increase was $7,000 so the segment margin will be;

= CM - Traceable fixed cost

= 12,000 - 7,000

= $5,000

5 0
3 years ago
Which of the following is an example of a non-profit organization?
never [62]

Answer: Salvation army

Explanation: Non profit organisations are those organisation, which perform their operation with the objective of social welfare or charity.

Salvation army is a charitable organisation having more than 1.7 million members all over the world, whom they refer to as soldiers. This organisation mainly serves to the poor and hungry.

Thus, we can conclude that the right option is D.

4 0
3 years ago
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