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choli [55]
2 years ago
11

Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $678

to buy all necessary production equipment. This equipment would be sold at the end of the project and bring your company estimated $144 in sale proceeds after taxes (or after-tax salvage value). Your boss's consulting team estimated that the annual after-tax profits (or operating cash flows) would equal $173. The team also recommends immediately setting aside $58 in cash to cover any unforeseen expenses. The required annual rate of return is 8.1%.
Calculate the Net Present Value of this proposed investment project. (Do NOT use "S" in your answer. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your answer to TWO decimal places. For example, 1,000,23 or -1,000.23) Focus E- 17 786 words English (United States)
Business
1 answer:
marusya05 [52]2 years ago
7 0

Answer:

$50.47

Explanation:

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

NPV can be calculated using a financial calculator  

Cash flow in year 0 = - ($678 +  $58 ) = -736

Cash flow in year 1 - 4 = $173

Cash flow in year 5 = $173 + $144

I = 8.1

NPV = 50.47

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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Answer:

Value-augmenting services

Explanation:

In marketing, the idea of adding value to a proposition via an additional, innovative offer is called Augmented marketing

Marketing is the means by which companies employ a range of strategies to help them sell their products to the right customer.

The word Augmentation means to make larger or to expand. In marketing terms, it is a set of associated services and benefits that are provided to a customer in addition to the actual product that they are purchasing.

6 0
3 years ago
OC Management Company (OCMC) has built or acquired several high-quality apartment buildings in Orange County. OCMC operates apar
Tema [17]

Answer:

"Rental (sales)" is the correct answer.

Explanation:

The rental process will be utilized for most of its commodities as a service or product payable to the landowner.

Rental Process Management could accommodate all facets of your leasing business:

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Thus the above is the correct approach.

8 0
2 years ago
Sunland Company sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no begi
Sonja [21]

Answer:

Ending inventory value= $380,000

Explanation:

Giving the following information:

Costs per unit are: direct materials $25, direct labor $12, and variable overhead $1.

Ending inventory in units= 10,000

<u>Under the variable costing method, the unit product cost is calculated using direct material, direct labor, and variable overhead.</u>

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3 0
3 years ago
Although there are advantages and disadvantages to home-based workers for both the employer and employee the disadvantages to em
melomori [17]

Answer:

C. It decreases important social interaction between and among employees on a number of levels, resulting in a change in the social network and corporate culture.

Explanation:

<em>Working from home</em> or freelancing has gained traction nowadays as it is a feasible way to transfer work to home, usually reducing costs and being more convenient for employees (mostly). However, working from home <u>neglects the aspect of socializing</u>, as it brings more alienation to the employee. Communication becomes mostly digital, and in-person contact is minimized.

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3 years ago
Angie’s Bake Shop makes birthday chocolate chip cookies that cost $3 each. Angie expects that 12% of the cookies will crack and
mestny [16]

Answer:

<em>Price per cookie $5.5</em>

Explanation:

The cost per cookies inclusive of wastage

$3× 100/(100-12)

=$3.409

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= 150× 43.409

= $511.36

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Selling price per unit

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<em>= $5.5</em>

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