Answer:
NPV = $55,894.45
Explanation:
the initial outlay of the project is $200,000
the salvage value is $10,000
useful life 10 years
annual costs $9,000
annual savings $50,000
luckily there are no taxes in space
we must determine the effective interest rate in order to be able to discount the future cash flows
(1 + 0.0478/6)¹² - 1 = 9.99%
the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000
net cash flow for year 10 = $41,000 + $10,000 = $51,000
using a financial calculator, the NPV = $55,894.45
Answer: d. The car is a normal goods for Jim
Explanation: if an individual's income goes up by a certain percentage or amount and, in response, the quantity demanded of good rises by rises in response to the income increase, such good can be considered a normal good. It is also defined as such good for which the income elasticity of demand is positive but less than one. This is the same scenario that has happened with Jim. His demand for better automobile increased as a result of an increase in his income.
Answer:
The 1-day rate of return on the index = 5.36%
Explanation:
Index Value = Sum of (Outstanding Shares*Share Price)
q p mv q1 p1 mv1
640,000 16 10240000 640000 20 12800000
540,000 24 12960000 540000 22 11880000
240,000 55 <u>13200000</u> 240000 57 <u>13680000</u>
<u>36400000 </u> <u>38360000</u>
Note: q/q1 = no of shares, p = price per share, mv/mv1 = market value, p1 = changed price per share
Return = (Index Value Today - Index Value Yesterday)/Index Value Yesterday
Return = (38360000 - 36400000) / 36400000
Return = 0.05385
Return = 5.36%
Answer:
A sales.
Explanation:
The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.
In this scenario, Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sales.
Answer:
c) $30,600
Explanation:
Bank statement balance = $36,000
Outstanding checks = ($10,000)
Deposit in transit as at month end = $4,000
Erroneous check charged = $600
Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600
= $30,600
The right option is c) $30,600
