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
RUDIKE [14]
3 years ago
7

A hospitality company is evaluating building a new hotel in Bloomington (capital project) that management forecasts will generat

e $45,000 each year over its six (6) year life. If the required rate of return given the project's identified risks is 12% (percent), and the project's up front costs are estimated at $165,000, should management go forward with the project?
a. Management should approve the new hotel since the project's NPV is positive.
b. Management should reject the new hotel project as the project's NPV is negative.
c. Unable to determine given information.
Business
1 answer:
Gre4nikov [31]3 years ago
3 0

Answer:

A

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.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-165,000

Cash flow in year 1 - 6  = $45,000

I = 12%

NPV = $20,013.33

the project should be approved because NPV is positive

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  

You might be interested in
Fried donuts has sales of $764,900, total assets of $687,300, total equity of $401,300, net income of $68,200, and dividends pai
Tomtit [17]
Internal growth rate = Net income / Total Assets
Net income = $68,200 
Total assets = $687,300
Internal growth rate 
= $68,200 / $687,300
= 0.099228 x 100%
= 9.92 %
Fried Donuts has an internal growth rate of 9.92%.
5 0
3 years ago
Uh hi . . . . . . . . BANNNA BANNNABANNNA BANNNABANNNA BANNNA BANNNA BANNNA :) B)
SIZIF [17.4K]

Answer:

banannanannanannanannananan

6 0
3 years ago
Read 2 more answers
True or false: transfer payments are accounted for in the consumption component of gdp. true false
TiliK225 [7]
True I think. Hope it helps
3 0
3 years ago
What were the impacts of the fur trade on society in terms of economics, culture, technology, nature, and the government? Did Ro
Oksi-84 [34.3K]

Answer:

The impacts of the fur trade on society in terms of economics, culture, technology, nature, and the government changed over the time.

Rockefeller never act unethically by the standards of his day or today´s.

There is nocontradiction between his personal and business ethics.

Explanation:

The fur trade was a vast commercial enterprise, which was at its peak for nearly 250 years, from the early 17th to the mid-19th centuries, sustained to satisfy the demand in an intensely competitive trade which opened exploration and settlement, financing missionary work, established social, economic and colonial relationships between Europeans and Indigenous people.

Changing cultural in the fashion industry, has had a drastic evolution over the years, when a woman in the first half of the twentieth century , might be very proud to wear a fox stole with its head and feet intact but today, it would consider  that an ethical faux pas.

Ethics has become a major consideration for young people in their selection of work and career, who demand enshrined values in their business  model, a difference, contributing with their core values, conscience, and personality not just profit.By the standards of his day Rockefeller, a faithful, balanced and devout Christian, was not being unethical as he always followed his-time regulations and laws, although nowadays they are more severe.  He compensated all the things he did, if wrong, with his contributions to help people cope with any damage done. There is no contradiction behe did as he had been taught when he was younger that he should separate business from pleasure.

6 0
3 years ago
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
snow_tiger [21]

Answer: Exclusive distribution

Explanation:

Exclusive distribution is defined as the agreement in which a parties involved are manufacturer and distributor.It states that the particular distributor cannot sell their service or item to any other party .It binds the agreement that product can be sold to the exclusive distributor.

According to the situation mentioned in the question, designers are asked for exclusive distribution by the retailer.Retailer does not wants that design of jewelry to be sold through any other source or retailer for effective sale.Thus agreement upon this matter is proposed by the retailer.

6 0
3 years ago
Other questions:
  • Why do most markets in the real world fall somewhere between perfect competition and monopoly?
    7·1 answer
  • a. What is the price​ (expressed as a percentage of the face​ value) of a​ one-year, zero-coupon corporate bond with a AAA​ rati
    5·1 answer
  • A manufacturer of a brand of high-end hiking boots and specialized athletic shoes has hired your agency to run a print campaign.
    12·1 answer
  • Suppose the government passes a law eliminating holidays and, as a result the production of goods and services increases because
    6·1 answer
  • Does 3d rendering boost the sales ?
    6·1 answer
  • The George Washington University encourages students to think critically and to challenge the status quo. Thus, civil discourse
    10·1 answer
  • Barnes enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a price
    5·1 answer
  • Flounder Corporation is preparing a bank reconciliation and has identified the following potential reconciling items.
    12·1 answer
  • Evaluate the current financial performance of eskom​
    7·1 answer
  • The Internet allows consumers to access information on-demand about products. This is an example of which kind of marketing util
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!