1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pantera1 [17]
3 years ago
15

an information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When t

he system goes online the following year, the company will save $30,000 during the first year of operation. For the next four years, the savings will be $20,000 per year. Assuming a 5 percent discount rate, what is the NPV of the system
Business
1 answer:
dangina [55]3 years ago
4 0
Given:
<span>initial cost $95,000 to implement over a one-year period and will produce no savings during that year.
the company will save $30,000 during the first year of operation.
For the next four years, the savings will be $20,000 per year.
5 percent discount rate

Year      Future Value            Factor                Present Value
0                                                                       (95,000)
1               30,000                 (1+0.05)</span>¹              28,571.43<span>
2               20,000                 (1+0.05)</span>²              18,140.59
3               20,000                 (1+0.05)³              17,276.75
4               20,000                 (1+0.05)⁴             16,454.05
5               20,000                 (1+0.05)⁵             15,670.52
Net Present Value                              1,113.34

Present Value = Future Value / Factor

The NPV of the system is 1,113.34
You might be interested in
When an employee shadows another employee to observe the performance of the duties of his job and then the roles are reversed th
azamat

When an employee shadows another employee to observe the performance of the duties of his job and then the roles are reversed this is known as: on-the-job training.

  • An essential area of human resource management is on-the-job training. It supports both the successful growth of the organization and the individual's professional development. One type of training offered at the workplace is on-the-job training.
  • On-the-Job Training (OJT) is defined as training in the public or private sector that is provided to a paid employee while they are engaged in productive work and that offers the knowledge and skills necessary to function fully and adequately on the job. OJT.
  • Although it isn't usually the norm, on-the-job training can boost productivity and efficiency in several industries. Additionally, it can be advantageous for the business as a whole, from lowering training expenses to developing more productive, motivated workers.

Thus this is the answer.

To learn more about on-the-job training, refer:brainly.com/question/24613213
#SPJ4

8 0
3 years ago
Foreign aid is intended to result in what?
nalin [4]
<span>Foreign aid is intended to result in development.

</span>
5 0
3 years ago
Locus Company has total fixed costs of $117,500. Its product sells for $53 per unit and variable costs amount to $43 per unit. N
Sholpan [36]

Answer:

12,925 units

Explanation:

Given,

Fixed expense = $117,500

If pretax income is 10% of fixed cost, the expected net operating income = $117,500 × 10% = $11,750.

Contribution margin per unit = $53 - $43 = $10.

We know,

Expected sales (units) = (Fixed expense + Target profit) ÷ Contribution Margin per unit

Expected sales (units) = ($117,500 + $11,750) ÷ $10

Expected sales (units) = $129,250 ÷ $10

Expected sales (units) = 12,925 units

As there is no information related to the next year, we will use current year information to find expected sales volume.

3 0
3 years ago
One method of evaluating the creativity of a team's ideas is looking at the fluency, flexibility, and originality of the ideas.
Daniel [21]

Answer:

-The hability to express an idea.

-The hability to make the necessary changes

-The hability of having new and non repited ideas.

Explanation:

One method of evaluating the creativity of a team´s ideas is looking at the fluency, flexibility and originality of the ideas. Fluency refers to the hability to express an idea in certain language or aspect: flexibility refers to the hability of making the necessary changes when are needed; originality refers tothe hability of creating new content and ideas that are non repeated.

3 0
3 years ago
Highlight four ways in which business risk may be classified​
bulgar [2K]

Answer:

Business risk usually occurs in one of four ways: strategic risk, compliance risk, operational risk, and reputational risk.

Explanation:

5 0
3 years ago
Other questions:
  • Railway Cabooses just paid its annual dividend of $3.30 per share. The company has been reducing the dividends by 12.1 percent e
    14·1 answer
  • Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The l
    6·1 answer
  • Under a perpetual inventory​ system, the journal entry to record the purchase of inventory on account will include​ a:
    15·1 answer
  • EcoFabrics has budgeted overhead costs of $945,000. It has allocated overhead on a plantwide basis to its two products (wool and
    8·1 answer
  • Aaron has designed innovative accessories for hard-core bicycling enthusiasts. He knows where and how he will make them, and he
    15·1 answer
  • By encouraging its sales representatives to freely talk to their managers about the changing customer needs, RST Global increase
    9·1 answer
  • According to Orlando:_____.
    13·1 answer
  • Writing skills do not shape how others perceive your abilities as a student or employee
    13·1 answer
  • Central, Inc., is a manufacturer of granite paints. Sales are seasonal due to the seasonality in the home-building industry. The
    6·1 answer
  • Suppose that tom bought a bike from helen for $195. if helen’s reservation price was $185, and tom's reservation price was $215,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!