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Nookie1986 [14]
3 years ago
6

The following present value factors are provided for use in this problem: Norman Co. wants to purchase a machine for $40,000 but

needs to earn an 8% return. The expected year-end net cash flows are $12,000 in each of the first three years and $16,000 in the fourth year. What is the machine's net present value (rounded to the nearest whole
Business
1 answer:
koban [17]3 years ago
5 0

Answer:

$2,685

Explanation:

Calculation to determine the machine's net present value

NET PRESENT VALUE

Year Cash flow*Discount factor at 8% =Discounted Cash flows

0 $ -40,000*1= $-40,000

1 $ 12,000*0.9259= $11,111

2 $12,000*0.8573=$10,289

3 $ 12,000* 0.7938=$9,526

4 $16,000*0.7350=$11,760

NET PRESENT VALUE $2,685

($-40,000+$11,111+$10,289+$9,526+$11,760)

Therefore the machine's net present value is $2,685

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Answer:

b)$34.45

Explanation:

Gratuity is similar to a service charge.

If the bill is $191.40, and gratitude of 18 percent will be added.  

The actual gratitude amount that will be added will be equal to

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=18/100 x $191.40

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3 years ago
SegR-6268 Corporation has two divisions, East and West. The following information was taken from last year's income statement se
RideAnS [48]

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Explanation:

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5 0
3 years ago
For what kinds of needs do you think a firm would issue securities in the money market versus the capital market? A firm would i
USPshnik [31]

Answer:

Answers are A , B and C

Explanation:

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B : In order to raise finance in the capital markets, issuers typically require a high Equity securities represent an ownership claim to the assets of a company. A preferred share is a special type of security which has a fixed periodic and hence Capital markets are typically used for fixed assets, which company will use over several years.

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8 0
4 years ago
Lumberne is a continent comprising 18 countries. Currently, Lumberne is a free trade area and an economic union including all 18
PIT_PIT [208]

Answer:

political union.

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This is an example of a political Union.

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3 years ago
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kotykmax [81]

Answer:

represent an oligopoly in which there are few sellers, and each seller has considerable control over price.

Explanation:

Car manufacturers are an oligopoly because they are relatively companies that operate around the world, they all offer similar products although they are not identical (e.g. sedans, SUVs, pickup trucks, etc.), and they all possess a considerable market power. Also it is very difficult for a new company to enter the market because the barriers of entry are extremely high since each company sells millions of cars per year worth billions of dollars.  Also, when of them starts a promotional activity, the rest will probably follow.

7 0
4 years ago
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