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
Alenkasestr [34]
3 years ago
11

g Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. Th

e investment costs $55,500 and has an estimated $11,400 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. (FV of $1, PV of $1, FV of $1 an PVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative amounts should be indicated by a minus sign.)
Business
1 answer:
nikdorinn [45]3 years ago
6 0

Answer:

Net Present value = -$40,221

Explanation:

The net present value is the sum of the discounted cash-flows over the life of the project from t=0 to t=n.

Year  Cash-flow PVIF       Present Value

0           (55,500)   1.0000    (55,500)

1               2,700    0.9091       2,455  

2              2,700    0.8264      2,231  

3              2,700    0.7513       2,029  

3             11,400     0.7513       <u>8,565  </u>

        Net Present value       (40,221)

The salvage value is treated as a cash-flow at the end of year 3 as that's the last year in which the project records a cash inflow. In this question, a negative net present value implies that the project is not profitable, and should therefore not be undertaken.

You might be interested in
At Patio Products International, each supervisor receives direction and information from the managers above them and passes that
alexandr1967 [171]

Answer:Unity of command

Explanation:Henri Fayol principle of management is one of the most widely accepted standard for effective management of Organisations. This principles highlights fourteen(14) points that highlights how management can carry out their responsibilities.

UNITY OF COMMAND IS ONE OF THE PRINCIPLES OF MANAGEMENT BY HENRI FAYOL WHICH INVOLVES A TOP-DOWN(MANAGERS TO SUPERVISORS TO THE JUNIOR PERSONNEL) APPROACH TO GIVING INSTRUCTIONS.

5 0
3 years ago
You need a new computer, and you will need a loan in order to buy one. Which lender is most likely to charge you the highest int
Rom4ik [11]
I know the answer is but b and d because they have the key words savings and with credit you pay lower to so the answer should be A
4 0
3 years ago
Read 2 more answers
Advertising, fashion trends, and new product introductions serve to
dmitriy555 [2]
The correct answer is letter c. create consumer demand. Advertising, fashion trends, and new product introductions serve to create consumer demand. 

Disequilibrium occurs when the quantity supplied and the quantity demanded are not the same in a market. The statement presented is True.

8 0
3 years ago
Assume you borrowed $100,000 at a fixed rate of 7 percent for 30 years to purchase a house. If the inflation rate is 3 percent,
nikitadnepr [17]

Answer:

(A) less

Explanation:

Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.

Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.

This means, $100,000 today will have the same value as $103,000 one year later.

Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.

6 0
3 years ago
Specalized accounting field ​
coldgirl [10]

Answer:

Accountants tend to specialize in one of these fields, which leads to the different career tracks noted below:

Financial accounting. ...

Public accounting. ...

Government accounting. ...

Forensic accounting. ...

Management accounting. ...

Tax accounting. ...

Internal auditing.

hope my ans helps

please give brainliest to my answer

be sure to follow me

stay safe

have a good day

7 0
3 years ago
Other questions:
  • chase lives in oregon but works for a company in florida. what business trend is this an example of?
    8·2 answers
  • The manager of Dukey’s Shoe Station estimates operating costs for the year will include $480,000 in fixed costs. Required: a. Fi
    10·1 answer
  • Why is the feedback loop important? Multiple Choice It looks at what is working and what could be different to maximize efficien
    13·1 answer
  • Sari, a movie theater manager, recently implemented a policy stating that workers who are willing to work a double shift on Frid
    7·2 answers
  • Raul overheard one of his co-workers in a phone conversation say, Thank you for taking my call so quickly. I'd like to order num
    15·1 answer
  • The makers of Whirlpool washers and other electrical appliance manufacturers need to be concerned about the kind and availabilit
    7·1 answer
  • This is to inform you that your letter of April 4 has been circulated to me, as I am in charge of such requests. After your inqu
    12·1 answer
  • Company A Company B Market Value of Equity $250,000 $200,000 Market Value of Debt $600,000 $500,000 Cost of Equity 8% 10% Cost o
    7·1 answer
  • LETTER<br>AN EXAMPLE OF A BUSINESS<br>bire me​
    10·1 answer
  • Which of the following statements is true of comparative negligence? Group of answer choices It allows a plaintiff to claim dama
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!