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
Ilia_Sergeevich [38]
3 years ago
5

Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3,

respectively. Should the project be accepted if it has been assigned a required return of 9.75 percent
Business
1 answer:
Alecsey [184]3 years ago
5 0

Answer:

Results are below.

Explanation:

To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>

<u>To calculate the NPV, we will use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 9,800/1.0975= 8,929.38

Cf2= 16,400/1.0975^2= 13,615.54

Cf3= 21,700/1.0975^3= 16,415.20

Total= $38,960.12

NPV= -38,700 + 38,960.12

NPV= 260.12

<u>The project is profitable. </u>

You might be interested in
Longstreet inc. has fixed operating costs of $470,000, variable costs of $2.80 per unit produced, and its product sells for $4.0
vovangra [49]
The answer is 391 667 
I think it is right so be sure to check just in case
good luck
3 0
3 years ago
g Declaring bankruptcy by the bond issuing firm ______ . a. has no impact on value of its bonds b. increases the value of its bo
Scilla [17]

Answer:

c. decreases the value of its bonds

Explanation:

There is a significant decrease in the value of the bond if the firm declares bankruptcy.

4 0
3 years ago
If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal
Lena [83]
<span>If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal cost is $600 a ton, the firm should reduce its output. The reason for the reduction of output is the marginal cost it will have. The marginal cost exceeds the selling price of the product which is a bad sign for the company.</span>
8 0
3 years ago
Beckingham Sports is an American sporting goods company. Based on $400,000 spent on market research and $600,000 spent on consul
Cerrena [4.2K]

Answer:

The correct answer is E)

Explanation:

Capital budgeting is an accounting method that corporations use to decide which planned acquisitions of fixed assets will be approved and which should be refused.

Some examples of Capital Expenditures include:

  1. Construction of an additional building
  2. Procurement of delivery vehicles
  3. Procurement of new equipment
  4. Rehabilitation of existing equipment

If one of the criteria for classification under Capital Expenditure is that it must be in the plan, then none of the above items mentioned in the question will fly.

Monies have already been expended on the options A, B, and C.

Option D is an offer to purchase an existing asset, not a planned investment. Therefore it also does not qualify.

Hence the correct answer is E.

Cheers!

3 0
3 years ago
On August 8th the​ three-month risk-free rate of interest in the United States was 3.75 percent and it was 3.00 percent in Japan
weeeeeb [17]

Answer:

The answer is 0.01082

Explanation:

The formula for forward exchange rate is:

F = S x 1+rd/1+rf

where F is the forward exchange rate

S is the spot exchange rate(0.010798)

rd is the foreign currency interest rate(3% or 0.03)

rf is the domestic interest rate(3.75% or 0.0375

Month is 3 months(90days) and total number of days in a year is 360days.

Find find the attached file for calculation

6 0
2 years ago
Other questions:
  • Self doubt is a result of ______. a. Having great success b. Lacking self-esteem c. Successful conflict resolution d. An asserti
    8·2 answers
  • The difference between the actual amount paid and the standard price paid to purchase an item is called a
    9·1 answer
  • Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique h
    15·1 answer
  • Which is the most clear and precise sentence explaining what to do before submitting new content to a webmaster?
    9·1 answer
  • Explain in your own words why "deep kissing" is considered a risk behavior for contracting hiv.
    9·1 answer
  • Which of the following falls in the category, "place" in the marketing mix?
    11·1 answer
  • Select the items below that describe rational behavior in economics
    13·1 answer
  • High operating leverage means: Select one: a. 1. The company has relatively low fixed costs. b. 2. The company has relatively hi
    10·1 answer
  • Click this link to view O*NET’s Wages and Employment section for Construction Managers. According to O*NET, what is the projecte
    11·2 answers
  • the aarp (american association of retired persons) pays to run an advertisement on certain television stations about protecting
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!