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
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.

You might be interested in
Abc company is hesitant about entering ukraine, because the country has been experiencing social unrest in recent years. Based o
AysviL [449]

The answer is<u> "political risk".</u>


Political risk is among the most critical hazard factors confronting international investors. In many rising and frontier markets, the political circumstance is altogether less steady than the United States with the potential for across the board extortion and defilement.  

Political risks  are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.

7 0
3 years ago
Stephanie bought a package of pencils for $1.75 and some erasers that cost $0.25 each. She paid a total of $4.25 for these items
Sonbull [250]

Answer:

the dogs

Explanation:

8 0
3 years ago
Colgate manufactures a fruit-flavored spongebob squarepants toothpaste for kids. the age-based variable that distinguishes the m
satela [25.4K]
Is an example of Market segmentation, which divides the market in half, due to a different demographics like age, target market etc.
The new target market that divides the market is possibly ages: 6-9

Hope this helps.
8 0
3 years ago
Read 2 more answers
Your company has just taken out a 1-year installment loan for $82,500 at a nominal rate of 12.0% but with equal end-of-month pay
Bas_tet [7]

Answer:

89.63% of 2nd month payment will go towards the payment of principal.

Explanation:

Loan Payament per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 12% per year = 1% per month

n = number months = 12 months

PV =  present value of all payments = $82,500

P = payment per month = ?

P = 1% ( $82,500 ) / 1 - ( 1 + 1% )^-12

P = $7,330 per month

Month Payments Principal Interest Balance

1                 -7330              -6505     -825       75995

2                -7330              -6570      -760      69,425

Percentage of Principal Payment  = Principal payment / totla monthly payment = $6,570 / $7,330 = 0.8963 = 89.63%

6 0
3 years ago
The act of influencing others to accomplish an objective is typically seen in which of the following environments? a. Business e
Juli2301 [7.4K]

Answer:

D- All of the above

Explanation:

Edg. 2021, took the test and got 100 percent

3 0
3 years ago
Other questions:
  • Increased investment alone will guarantee economic growth. A. This is a false statement, because an economy must rely on capital
    9·1 answer
  • Dinesh manages a division of a sporting goods manufacturer. He attends a conference and receives advice from four experienced ma
    8·1 answer
  • Gerald’s manufacturing firm sold goods worth $6,000 to some customers on credit in the month of January. His customers plan to p
    14·1 answer
  • If you watch television, you may have seen the ads that show a controlled crash of a car containing crash test dummies and the r
    6·2 answers
  • Who appoints the members of the given branch in the United States?
    10·2 answers
  • What is positive technological​ change? Positive technological change is when A. a firm is able to produce more output with the
    9·1 answer
  • Wood Co. owns 2,000 shares of Arlo, Inc.’s 20,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock and 1,000
    10·1 answer
  • After 9/11, the demand for air travel fell substantially, bringing the airline industry to its knees. Congress wanted to compens
    5·1 answer
  • Kara voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand, sh
    7·1 answer
  • Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!