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harina [27]
3 years ago
15

Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project alpha) that will require an

initial investment of $500,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $325,000
Year 2 $425,000
Year 3 $450,000
Year 4 $400,000
Blue Hamster Manufacturing Inc’s weighted average cost of the capital is 10%, and project alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)?
a. $871,690
b. $1,157,991
c. $1,182,991
d. $757,991
Business
1 answer:
Neko [114]3 years ago
8 0

Answer:

d. $757,991.26

Explanation:

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)

= $1,257,991.25743

NPV = Present value of inflows - Present value of outflows

NPV = $1,257,991.25743 - $500,000

NPV = 757991.25743

NPV = $757,991.26

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Satisfy their wants and needs

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The average cost is known as unit cost. It is equal to total cost divided by the number of goods produced. If Average variable costs are increasing while average total costs are decreasing, then marginal cost must lie between average variable and average total costs.

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The relationship that exist between Average total costs and Marginal cost is that:

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On June 1, 2021, Duncan Inc. purchased equipment for $74,000. The equipment
valentina_108 [34]

Answer:

The amount of accumulated depreciation on the equipment shown in

the company's December 31, 2022 balance sheet is $16,500.

Explanation:

<em>Depreciation Expense (Units of Production) = (Cost - Residual Value) × (Period`s Production / Total Estimated Production)</em>

2021.

Depreciation Expense = ($74,000 - $8,000) × ( 11,000 units / 120,000 units )

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2022

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6 0
3 years ago
At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era i
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A. market-oriented

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Market - oriented -

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In this case , the consumers are considered to be the king , and the goods and services are designed according to their wish,  

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The correct term from the given options is A. market-oriented .

3 0
3 years ago
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