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Nimfa-mama [501]
3 years ago
6

Mattice Corporation is considering investing $720,000 in a project. The life of the project would be 11 years. The project would

require additional working capital of $22,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $154,000. The salvage value of the assets used in the project would be $32,000. The company uses a discount rate of 18%. (Ignore income taxes) Click here to view Exhibit 12B-1 and Exhibit 128-2 to determine the appropriate discount factor(s) using the tables provided Required Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Business
1 answer:
lbvjy [14]3 years ago
3 0

Answer:

The Project should be rejected.

The Net present value is lower than zero. Meaning the returns on the investment yields a loss, as we are not able to cover our initial investments.

Explanation:

The Present value of the inflow and outflow should be considered before deciding the viability of the project.

Using the Net Present Value approach, we will want to consider against the outflows and at a certain cost of capital/rate of return if this projects meets at least the minimum threshold of breaking even. At this point the net cash flow would be at least zero for the project to be accepted.

Kindly review the document attached for detailed workings.

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Answer:

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Explanation:

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For instance : oil-creating countries have a relative favorable position in synthetic substances. Their privately delivered oil gives a modest wellspring of material for the synthetic substances when contrasted with nations without it.  

Similar preferred position, is a financial hypothesis, first created by nineteenth century British business analyst David Ricardo, that ascribed the reason and advantages of worldwide exchange to the distinctions in the relative open door (costs as far as different merchandise surrendered) of delivering similar wares among nations.

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Which of the following is an example of an illiquid asset?
denis23 [38]

Answer:

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Explanation:

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3 years ago
What is customer relationship?
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Answer:

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