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Marianna [84]
3 years ago
15

A company is considering buying licenses for 12 megahertz of wireless spectrum in the 700 MHz range, which is suitable for deliv

ering television to mobile phones. The 700 MHz signals can travel long distances and more easily penetrate walls and other obstacles. The acquisition cost is $150 million. In addition, because networks that operate in the 700 MHz range are less expensive to build than those in other portions of the spectrum, the company estimates annual costs of $15 million over the next 8 years and no salvage value. During the same period, the company expects to generate annual revenue of $18 million by offering television arid video to mobile-phone users. Calculate the net present worth of this investment and determine the acceptability of the investment if the company's minimum attractive rate of return is 15% per year.
Business
1 answer:
Ne4ueva [31]3 years ago
4 0

Answer:

NPW = -$136.539 million

The negative net present value means that the project is not financially feasible, and therefore the company does not approve or pursue this investment.

Explanation:

Data Given:

Initial cost = $150 million

Annual cost = $15 million

Annual revenue = $18 million

salvage value = $0

Time period = 8 years

MARR = 15%

Calculate Net present worth:

NPW = -$150 million + ($18 million - $15 million) (P/A, 15%, 8)

(P/A, 15%, 8) = 4.487

NPW = -$150 million + ($3 million * 4.487)

NPW = -$150 million + $13.461 million

NPW = -$136.539 million

The negative net present value means that the project is not financially feasible, and therefore the company does not approve or pursue this investment.

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Gabby and Gus Malloy recently got preapproved on a loan for their first house purchase. They are speculating on how much they sh
fredd [130]

Answer:

The indicators may be an important factor will be the unemployment rate in the area

Explanation:

The federal tax rate in the that area, may no different that in other area and it can be pay if you have job, the other indicator could be is the producer price index but it can't tell you the economy as well just the productions and finally the CMI consume marginal index tell you more about life style in the zone, so that's why the indicator that is higgher influence is the unemployment rate because that determinate how many people around can pay and be able to grow economy way in the area, so t you can get return on investment

6 0
3 years ago
Interim financial statements: Multiple Choice Are required by the Congress. Are necessary to achieve full disclosure about a bus
GaryK [48]

Answer:

Are statements prepared for periods of less than one year.

Explanation:

Interim Financial Statements

This is simply known as a financial statements prepared for a timeframe (period) that is part of the entity's annual fiscal period. discontinued operations and extraordinary items that occur at midyear initially are often reported  in net income and open up in the notes to interim financial statements.The fundamental principle guarding interim reporting is that

interim reports must be considered as a part of the integral of the annual reporting period.

An interim statement as a financial report timeframe is often less than one year. It often shows an organisation's performance before the end of normal full-year financial reporting cycles and often, this statements do not need to be audited.

5 0
3 years ago
The economy is initially in short-run equilibrium when incomes taxes decline and productivity rises. If the change in aggregate
Vikki [24]

Answer:

If the aggregate supply—also referred to as the short-run aggregate supply or SRAS—curve shifts to the right, then a greater quantity of real GDP is produced at every price level. If the aggregate supply curve shifts to the left, then a lower quantity of real GDP is produced at every price level.

Explanation:

A shift in aggregate supply can be attributed to many variables, including changes in the size and quality of labor, technological innovations, an increase in wages, an increase in production costs, changes in producer taxes, and subsidies and changes in inflation.

In summary, aggregate supply in the short run (SRAS) is best defined as the total production of goods and services available in an economy at different price levels while some resources to produce are fixed... As prices increase, quantity supplied increases along the curve.

3 0
3 years ago
Read 2 more answers
Adair Valley issued $20,000,000 of general obligation bonds to construct a multipurpose arena. These bonds will be serviced by a
Arlecino [84]

Answer: Please see explanation column for answer.

Explanation:

a) Journal entry to record the budget

Account                                           Debit                     Credit

Estimated   Revenues         $2,500,000

Appropriation                                                        $2,000,000

Budget fund                                                           $500,000

Calculation    

Budget fund= Estimated Revenues-Appropriation   = $2,500,000- $2,000,000= $500,000

b) Journal entry to record the  the expenditure when the interest comes due for payment.

Account                                           Debit                     Credit

Expenditure Interest              $2,000,000

Matured Interest payable                                            $2,000,000

7 0
3 years ago
On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting ent
scZoUnD [109]

Answer:

c. debit to Interest Expense of $1,000.

Explanation:

The adjusting entry is as follows:

Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000

     To Interest payable $1,000

(Being the interest expense is recorded)

Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities

Therefore the correct option is c.

7 0
3 years ago
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