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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.

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Spectra Scientific of Santa Clara, California, manufactures Q-switched solid-state industrial lasers for LED substrate scribing
SIZIF [17.4K]

The <u>amount of the unrecovered balance</u> immediately before Spectra Scientific of Santa Clara, California made the first payment at the end of year 1 is $49,680,000.00.

<h3>What is future value?</h3>

The unrecovered amount is the future value of the loan at the end of year 1 after the first year's interest has been added, and before subtracting the first payment.

The future value can be computed using the Future Value Formula below or an online finance calculator as follows:

<h3>Future Value Formula:</h3>

FV = PV(1+r)^{n}

FV = future value

PV = present value

r = annual interest rate

{n} = number of periods interest held

<h3>Data and Calculations:</h3>

N (# of periods) = 6 years

I/Y (Interest per year) = 8%

PV (Present Value) = $46,000,000

PMT (Periodic Payment) = $0

<u>Results:</u>

FV = $49,680,000.00

<u>Annual Schedule of Payment and Balance:</u>

Period       PV                   PMT             Interest                    FV

1 $46,000,000.00 $0.00 $3,680,000.00 $49,680,000.00

Thus, the <u>amount of the unrecovered balance</u> immediately before Spectra Scientific of Santa Clara, California made the first payment at the end of year 1 is $49,680,000.00.

Learn more about future value at brainly.com/question/24703884

5 0
2 years ago
Dagnon Corporation uses direct labor-hours in its predetermined overhead rate, At the beginning of the year, the total estimated
xenn [34]

Answer:

a) $17.70

Explanation:

The computation of the predetermined overhead rate is shown below:

But before that we need to do the following calculations

Applied manufacturing overheads is

= $13,850 + $294,130

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And,

Applied manufacturing overheads is

= predetermined overhead rate × Actual direct labor hours

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= $307,980 ÷ 174,00 hours  

= $17.70

Therefore, the correct option is d. $17.70

3 0
3 years ago
Cool Gelato uses various sizes of foam cups. The use of 8oz foam cups is constant throughout the year, and Cool Gelato expects t
ruslelena [56]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
3 years ago
PLEASE HELP ME
Gnom [1K]

Answer:

C

I hope it helps, sry if it doesn't!

I don't rly know how to explain it tho

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6 0
2 years ago
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8 0
3 years ago
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