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MatroZZZ [7]
3 years ago
9

Respass Corporation has provided the following data concerning an investment project that it is considering: Initial investment

$ 160,000 Annual cash flow $ 54,000 per year Salvage value at the end of the project $ 11,000 Expected life of the project 4 years Discount rate 15% Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to:
Business
1 answer:
lesya692 [45]3 years ago
6 0

Answer: $516

Explanation:

Net Present value is the present value of inflows less present value of outflows.

The project has annual inflows of $54,000 except in 4th year where it will have inflows of $65,000 because the salvage value will be added to the inflows.

Present value of inflows = 54,000/1.12 + 54,000/1.12² + 54,000/1.12³ + 65,000/1.12⁴

= $160,516

Net Present Value = 160,516 - 160,000

= $516

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Kathy wants to buy a house at least 2,500 square feet in size. she looks at pat's house. pat honestly and reasonably believes th
irinina [24]
Given that <span>Kathy wants to buy a house at least 2,500 square feet in size. She looks at Pat's house. Pat honestly and reasonably believes the house has 2,600 square feet of floor space, and he tells her that. Kathy agrees to buy the house. When the house is measured, she learns that it has 2,400 square feet of floor space. Kathy can seek to rescind the contract on the basis of Pat's innocent misrepresentation.</span>
5 0
3 years ago
What must be the first cost of Alternative B to make the two alternatives equally attractive economically at an interest rate of
Gelneren [198K]

Answer:

The answer is "21,622.98".

Explanation:

In the given question some information is missing, which can be defined in the given attachment.

To calculate the first cost we first subtract B cost is to X.      

NPV = Cash Flow of the sum of PV amount  

PV = \frac{Flow of cash} {(1+i)^n} \\\\ \ Calculating \ the \ NPV \ of \ option \ A: \\\\

= \frac{-16600}{(1 + 0.08)^0}-\frac{2400}{(1 + 0.08)^1}-\frac{2400}{(1 + 0.08)^2} -\frac{2400}{(1 + 0.08)^3}-\frac{2400}{(1 + 0.08)^4}

= \frac{-16600}{1}-\frac{2400}{1.08}-\frac{2400}{1.16}-\frac{2400}{1.25}-\frac{2400}{1.36}

=-16600-2222.22-2068.96-1920-1764.70\\\\=-24,575.88

The value of Option A or NPV = -24,575.88

The value of Option B or NPV:

=-\frac{X}{(1 + 0.80)^0}-\frac{1000}{(1 + 0.08)^1} -\frac{1000}{(1 + 0.08)^2}-\frac{1000}{(1 + 0.08)^3}-\frac{1000}{(1 + 0.08)^4} \\\\ =-\frac{X}{(1.80)^0}-\frac{1000}{(1.08)^1} -\frac{1000}{(1.08)^2}-\frac{1000}{(1.08)^3}-\frac{1000}{(1.08)^4}

= -\frac{X}{1}-\frac{1000}{1.08}-\frac{1000}{1.16}-\frac{1000}{1.25}-\frac{1000}{1.36}\\\\= -X -555.55-862.06-800-735.29\\\\=-X -2952.9

The value of Option B or NPV = -X -2952.9

As demanded  

In Option B  the value of NPV = In Option A  the value of  NPV  

-X -2952.9= -24,575.88\\\\-X= -21,622.98\\\\X=21,622.98\\

7 0
4 years ago
The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent inc
Snowcat [4.5K]

Answer:

Optimal package size = 4 units

Optimal package price = $20

Explanation:

P = 8 - 1.5Q and C(Q) = 2.0Q, MC = 2

To obtain optimal package size, we put

Price is equal to the marginal cost, P = MC

8 - 1.5Q = 2

     1.5Q = 6

          Q = 6 ÷ 1.5

              = 4

Therefore,

Optimal package size = 4 units

Hence,

Optimal package price:

= 0.5[8 - 2] × 4 + 2 × 4

= 12 + 8

= $20

3 0
3 years ago
On January 1, 2021, Legion Company sold $270,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December
BabaBlast [244]

Answer:

Interest expense = $8453

Explanation:

We can calculate Bond interest expense by multiplying Carrying value of the bond with the effective interest rate and the period of time,

DATA

Carrying value of bond = $169,056

Effective interest rate = 10%

Period of time = 6 months

Interest expense =?

Calculation

Interest expense = Carrying value x Effective interest rate x Time period

Interest expense = $169,056 x 10% x \frac{6months}{12months}

Interest expense = $8453

3 0
3 years ago
The level of entrepreneurial activity in a nation is __________ the nation's level of economic productivity.
maria [59]

The level of entrepreneurial activity in a nation is positively related to the nation's level of economic productivity.

<h3>What is economic productivity?</h3>

Productivity is the proficiency of creation of labor and products communicated by some action.

Estimations of economic productivity are many times communicated as a proportion of a total result to a solitary info or a total info utilized in a creation cycle There are various meanings of productivity (counting those that are not characterized as proportions of result to include) and the decision among them relies upon the reason for the productivity estimation as well as information accessibility.

Productivity is a pivotal consider the creation execution of firms and countries. Expanding public productivity can increase living expectations since all the more genuine pay works on individuals' capacity to buy labor and products.

Therefore economic productivity maintain the level of entrepreneurial activity.

Learn more about economy here:

brainly.com/question/2421251

#SPJ4

4 0
2 years ago
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