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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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Lunna [17]

Answer: The answer is given below

Explanation:

According to Gerzema, some of the changes that consumers are making when it comes to spending money or buying an item include the idea of using debit cards at the expense of credit cards. This implies that individuals are now paying for goods and services with the money that is already with them.

He also said individuals now go after the “liquid life”, where he said that individuals define success on liquidity and not on having things. He also said individuals look at organization's values and that they're always looking for ways to have value for things they buy. The cause of these are the fact that consumers are being empowered and also wants to improve their economy.

8 0
3 years ago
Should a president be held responsible for an underperforming economy?
Lana71 [14]
Yes he should be because people had higher expectations
3 0
3 years ago
TL Company has expected earnings of $75 in one year if it does well and $25 if it does poorly. The firm has outstanding debt of
Juliette [100K]

Answer:$27.78

Explanation:

Expected value of debt after one year = (40* .60)+(15*.40)

= 24 + 6

=$ 30

Current value of debt = Value at 1year / (1+r)^n

= 30/ (1+.08)^1

= 30 / 1.08

=$ 27.78

3 0
3 years ago
last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable
Inga [223]

A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Present Yearly Net operating income (loss)

(Units * CM Per unit)-Fixed cost

Units Sales 415000|

[Selling Price Per Unit 70

\Variabel Expense Per unit 40|

Fixed Expenses 540000]

Compute the CM ratio

Selling Price Per Unit 70.00

Variable Expense Per unit 40.00

Contribution Margin per unit ( Selling Price - Variable Cost) 30.00

Ico Ratio =( CM/Selling Price) 42.857%

Learn more about the company  here

brainly.com/question/24553900

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5 0
1 year ago
A business has a fixed costs of US$100 000 and variable costs of US$5 per unit.
OLga [1]

Answer:

$250,000

Explanation:

50,000 units × $5 per unit = $250,000

4 0
3 years ago
Read 2 more answers
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