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Snezhnost [94]
4 years ago
6

Allo Foundation, a tax-exempt organization, invested $200,000 in cost-saving equipment. The equipment has a five-year useful lif

e with no salvage value. Allo estimates that the annual cash savings from this project will amount to $65,000. On investments of this type, Allo's required rate of return is 12%.The net present value of the project is closest to: Select one: a. $34,300 b. $36,400 c. $90,000 d. $125,000
Business
1 answer:
LiRa [457]4 years ago
4 0

Answer:

Net Present Value = $ 34,310.45  

Explanation:

<em>The Net present Value (NPV ) is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.  </em>

NPV of an investment

NPV = PV of Cash inflows - PV of cash outflow  

The cash inflow is an annuity.

PV of annuity= A× 1 -(1+r)^(-n)/r  

A- Annual cash flow ,- 65,000 r - discount rate - 12%, number of years- 5

Present Value of cash inflow =65,000 × (1- (1.12)^(-5)/0.12 =  234,310.45  

Initial cost = 200,000

Net Present Value =  -  234,310.45  -200,000 = 34,310.45  

Net Present Value = $ 34,310.45  

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People of color, size, height. Even gender, I feel fashion is thrown more towards women than men, sexuality/trans and sexism.

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Size- Size is a big one why is a model always skinny, why is a must for the clothes. Why can't it be way more diverse from size 0 to size 30, it's about how you wear the clothes that matters, not the weight of the model. it would  be a huge boost in confidence to bigger people and show great diversity in the world of fashion. .

Height- This is the same thing as size, models who wear the clothes are always tall make clothes for short people. Be more diverse, serisoly make clothes for men/women/short/tall/size0/size30.

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Please don't take my grammer seriously or my spelling. Thank you!

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