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2 years ago

Net Present Value Analysis [LO12-2]

Business

1 answer:

zheka24 [161]2 years ago

3 0

Answer:

NPV = $-1,225.37

No. The return is less than 14%, because the net present value is negative

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-13,000

Cash flow in year 1 and 2 = 420

Cash flow in year 3 = $420 + $16,000 = $16,420.

I = 14%

NPV = $-1,225.37

The return is less than 14%, because the net present value is negative

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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alexira [117]

Answer:

$72,200

Explanation:

For computing the amount included in the income statement as an investment we need to applied the equity method which is shown below:

= Earned amount × given percentage

= $361,000 × 20%

= $72,200

We simply multiply the earned amount by Nash with the acquiring percentage i.e 20% so that the amount could come and the same is to be included in the income statement

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3 years ago

The following data are for Lily Kay Company. Total sales revenue $250,000 Number of units sold 50,000 units Contribution margin

eduard

Answer:

b. 51,429 units

Explanation:

If x = Number of units

Net Income = Sales Revenue - Variable Cost - Fixed Cost

Net Income = Contribution Margin - Fixed Cost

where,

Net Income = $80,000

Contribution Margin per unit = $3.50

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Contribution Margin = Net Income + Fixed Cost

$3.50x = $80,000 + $100,000

$3.50x = $180,000

Dividing the above equation by $3.50 we get

x = $180,000 / $3.50

x = 51,429 units

Hence 51,429 number of units must be sold to generate the net income of $80,000.

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3 years ago

Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology.

Vikki [24]

Answer:

Appropriate Terminology

a. If Kevin's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions supplied, you would advise your coworker to construct -------- using the data provided.

bar chart or histogram

b. However, if Kevin's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that a -------- would be more appropriate.

table

Explanation:

A bar chart or graph represents categorical data with rectangular bars. It can be used to visualize data distributions, compare data groups, and to track periodic changes in data. Tables are versatile organization tools that can communicate information with or without the use of other graphical tools.

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2 years ago

Foxtrot Co. started 2021 with $113,000 of merchandise inventory on hand. During 2021, $480,000 in merchandise was purchased on a

Marina CMI [18]

Answer:

$211,772

Explanation:

The computation of ending inventory is shown below:-

Discount = ($480,000 - $3,600) × 2%

= $9,528

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= $113,000 + $480,000 - $3,600 - $9,528 + $7,900

= $587,772

Ending inventory = Cost of goods for sale - Cost of goods sold

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So, the right answer is $211,772. Hence the option is not available.

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3 years ago

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Answer:

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