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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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The following are the transactions of Spotlighter, Inc., for the month of January:
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Answer:

Spotlighter, Inc.

Cash

Account Titles     Debit    Credit

Beginning balance $0

Notes Payable   $4,740

Common stock $5,430

Equipment                      $1,000

Supplies                          $1,100

Ending balance             $8,070

Notes Payable

Account Titles     Debit    Credit

Beginning balance $0

Cash                               $4,740

Equipment                        1,600

Ending balance  $6,340

Common stock

Account Titles     Debit    Credit

Beginning balance               $0

Cash                              $5,430

Equipment

Account Titles     Debit    Credit

Beginning balance $0

Cash                 $1,000

Notes Payable $1,600

Ending balance            $2,600

Supplies

Account Titles         Debit    Credit

Beginning balance $0

Cash                       $1,100

Accounts Payable $1,500

Ending balance                   $2,600

Accounts Payable

Account Titles     Debit    Credit

Beginning balance              $0

Supplies                        $1,500

Ending Balance $1,500

Explanation:

1) Data and Transaction Analysis:

a. Cash $4,740 Notes Payable $4,740

b. Cash $5,430 Common stock $5,430

c. Equipment $2,600 Cash $1,000 Notes Payable $1,600

d. Supplies $1,100 Cash $1,100

e. Supplies $1,500 Accounts Payable $1,500

6 0
3 years ago
An import quota seeks to guarantee domestic industries ______.
lyudmila [28]

Answer:

a. will have access to experts who can decide international trade disputes.

Explanation:

7 0
2 years ago
Assume that an economy produces only two goods, pizza and wings. Place the events in order, to show how an improvement in pizza-
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The population of the animals would decrease but more chicken wings and pizza would be everywhere which is great Bc who doesn’t like pizza and chicken wings
4 0
3 years ago
Read 2 more answers
Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Complia
olga nikolaevna [1]

Answer:

A) the law does not codify all ethical requirements.

Explanation:

Laws are meant to be generally and applicable to all individuals or organizations. It is absolutely impossible that laws could be made specifically for every single person, business, organization, and that it covers all their possible actions.

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7 0
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The field of accounting that reports according to generally accepted accounting principles (GAAP) is called:cost accounting.fina
Flauer [41]

Answer:

Financial accounting

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3 years ago
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