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3 years ago

Please calculate the Net Present Value for the following scenario:

Business

1 answer:

Mrac [35]3 years ago

5 0

Answer:

-$931.35

Explanation:

The computation of the net present value is given below:

Before that the present value is

<u>Year Amount Discount factor at 14% Present value </u>

1 $300 .877 $263.1

2 $350 .769 $269.15

3 $400 .675 $270

4 $450 .592 $266.4

PV of Cash Inflows = $1,068.65

And, the initial investment is $2,000

So, the net present value is

= The present value of Cash inflows - initial investment

= $1,068.65 - $2,000

= -$931.35

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Free entry means that:________

g100num [7]

The correct option is (c) no legal barriers prevent a firm from entering an industry.

No legal barriers:

Non-legal writing non-legal careers anything unrelated to the law or the legal profession.

Because, the industry is free and flexible for enter and exit and no other government interventions will be applicable in that free entry no barriers is there and movability will be $100%$ for any industry.

Not option (a) Because, the government really levies admission fees for certain types of businesses due to the legal issues surrounding certain businesses and fields, hence they never reimburse the fees.

Not option (b) because, Because it is a government supported program and private businesses cannot participate for free, only semi-government or completely government can do the same, government financed research never helps in sustaining in lower cost patients and hurdles.

Not option (c) because, If a company is operating a successful and reliable business, its marginal cost cannot be zero, and thus will normally not provide free entrance into any industry or type of business.

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2 years ago

The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research proje

Dafna1 [17]

Answer:

Answer

Explanation:

The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.

Project Expense Management Estimated Profit

($1,000s) Scientists required (1,000,000s)

1 50 6 0.30

2 105 8 0.85

3 56 9 0.20

4 45 3 0.15

5 90 7 0.50

6 80 5 0.45

7 78 8 0.55

8 60 5 0.40

Formulate the integer programming model for this problem and solve it using the computer.

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3 years ago

sherry is paid 16.50 during regular hours and 24.75 per hour overtime.she worked 80 hours regular time and 10 hours overtime. ca

White raven [17]

Explanation:
$1320 for regular hours
$247.50 for over time

Answer:$1567.5 total earnings

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3 years ago

In the BIG BUCKS LOTTERY, the chance of winning a $10 prize is 1%. What is your best guess about how many people would win a $10

3241004551 [841]

Answer:

The correct answer would be, 10 Persons.

Explanation:

If there are 1000 people in the Big Bucks lottery and there is a 1 percent chance of winning 10 dollars prize if all 1000 people buy the lottery ticket of 10 dollars. If every person buys 10 dollar lottery ticket, then the chances of winning people would be calculated as follows:

Total number of People = 1000

Chances of winning the lottery = 1%

So How many people would win 10 dollar lottery = 1000 * 1%

= 1000 * 0.01

= 10 People.

So there are chances that 10 out of 1000 people will win the lottery.

5 0

4 years ago

Read 2 more answers

It is estimated that a certain piece of equipment can save $ per year in labor and materials costs. The equipment has an expect

Delvig [45]

Answer:

The amount that could be justified now for the purchase of this piece of equipment is $73,747.41.

Explanation:

Note: This question is not complete as all the data in it are omitted. A complete question is therefore provided before answering the question as follows:

It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials cost. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, how much could be justified now for the purchase of this piece of equipment?

The explanation to the answer is now given as follows:

To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of the amount to justify the equipment purchase = ?

P = yearly savings in labor and materials costs = $22,000

r = annual return rate = 15% = 0.15

n = Equipment has an expected life = 5

Substitute the values into equation (1) to have:

PV = $22,000 * [{1 - [1 / (1 + 0.15)]^5} / 0.15]

PV = $22,000 * [{1 - [1 / 1.15]^5} / 0.15]

PV = $22,000 * [{1 - 0.869565217391304^5} / 0.15]

PV = $22,000 * [{1 - 0.497176735298289} / 0.15]

PV = $22,000 * [0.502823264701711 / 0.15]

PV = $22,000 * 3.35215509801141

PV = $73,747.41

Therefore, the amount that could be justified now for the purchase of this piece of equipment is $73,747.41.

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4 years ago