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Gekata [30.6K]
3 years ago
10

Consider the following capital budgeting problem, you invest 100 and expect to receive $50 in each of the next three years. The

discount rate is 10%. What is the initial cost of the project, how much value is created and what would you be willing to sell the project for?
Business
1 answer:
Zanzabum3 years ago
6 0

Answer:

What is the initial cost of the project?

the initial cost or initial outlay = $100

how much value is created?

the NPV of the project = -$100 + $50/1.1 + $50/1.1² + $50/1.1³ = $24.34

the NPV basically gives us how much value or wealth is created by the project

and what would you be willing to sell the project for?

selling price = $124.34 (= initial outlay + NPV)

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Which of the following is the most common traits of entrepreneurs? A. Passionate B. Risk-taker C. Independence D. Self-assured
Juliette [100K]

Answer:

A. Passionate

Explanation:

Hope this helps

8 0
3 years ago
Blossom Company began the year with retained earnings of $390000. During the year, the company recorded revenues of $489000, exp
Ronch [10]

Answer:

$455,500

Explanation:

Retained Earnings are profits that have not been distributed as dividends to shareholders.  Dividends shared plus retained earning add up the total earnings by a company.

Retained earnings =  profits - dividends shared

In the year revenues were $489, 000

expenses were $379,000

profits were $489,000 - $379,000 =$110,000

The dividends paid in the year were $44,500. It means the retained earnings in the year are $65,000( $110,000 - $44500)

Retained earning in the year will be beginning retained earning plus year's retained earnings.

=$390,000 + $44,500

=$455,500

8 0
3 years ago
A tying arrangement is​ _______.
Phoenix [80]
<span>A tying arrangement is​ illegal under the Clayton Act if it lessens competition or creates monopoly.  The Clayton Act focuses on topics regarding price discrimination, price fixing and unfair business practices. Since a tying arrangement means you are purchasing one product with agreement to purchasing another or you can not purchase the initial product, you are in a tying arrangement.</span>
4 0
3 years ago
A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable e
jek_recluse [69]

Answer: Decrease by $11,200 per year.

Explanation:

First let's calculate the income if the product is not dropped.

Calculting income would be,

= Sales - Variable Costs - Fixed Costs

= 224,000 - 156,800 - 100,800

= -$33,600

Income(loss) would be a ($33,600) if the product is kept.

If the product is discontinued, it is given that $44,800 in fixed costs will still continue.

These fixed costs cannot be covered in part by the Sales because the product will be discontinued. So that means the net operating Income would simply be a $44,800 loss.

The difference between these 2 options is therefore,

= 44,800 - 33,600

= $11,200

This means that if Product A is stopped, the net operating income will decrease by a further $11,200 because there is no revenue to cover the fixed assets in part. The last option is correct.

7 0
3 years ago
Danielle has to send a message to her manager. It is taking her extra time to draft the message because of the number of edits s
alex41 [277]

The type of communication that Danielle is carrying out is written communication. She is editing the written message to be sent to her manager.

<h3>What is Written Communication?</h3>

A 'Written Communication' refers to the process of sending messages, orders, or commands in writing thru letters, circulars, manuals, reports, telegrams, workplace memos, bulletins, and many more.

It is a proper approach to conversation and is much less flexible in nature.

Therefore, The type of communication that Danielle is carrying out is written communication. She is editing the written message to be sent to her manager.

learn more about written communication here:

brainly.com/question/7562621

#SPJ1

8 0
2 years ago
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