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zimovet [89]
3 years ago
5

Park Co. is considering an investment that requires immediate payment of $21,705 and provides expected cash inflows of $6,700 an

nually for four years. Assume Park Co. requires a 7% return on its investments.
Required:
What is the net present value of this investment?
Business
1 answer:
hjlf3 years ago
8 0

Answer:

The net present value of this investment is $989.32

Explanation:

The Net Present Value is calculated by taking the Present Day (discounted) value of all future net cash flows based on the business cost of capital and subtracting the initial cost of investment.

Input Value   Cash flow

CF0                ($21,705)

CF1                   $6,700

CF2                   $6,700

CF3                   $6,700

CF4                   $6,700

Cost of Capital = 7%

Input the values in a financial calculator we get the result;

Net present value = $989.3154

                              = $989.32

Conclusion :

The net present value of this investment is $989.32

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Which of the following illustrates the law of demand? a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteri
iVinArrow [24]

Answer:

e. a and c

Explanation:

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This occurs because of the law of diminishing marginal utility.

The law of diminishing marginal utility states that the more of a commodity is consumed, the lower the utility derived from the consumption of the product.

It follows that Jorge and karissa would demand less of pencils and sweaters as their prices rise.

The demand curve is usually downward sloping to illustrate the law of demand.

4 0
3 years ago
a company currently producing 10 air conditioners each day has daily total costs of $1,500. producing an additional air conditio
pantera1 [17]

If the company produces an additional 11th air conditioners, the daily costs would reach $1750.

A cost is the worth of money that has been expended to produce something or provide a service and is therefore no longer available for use in production, research, retail, and accounting. In the case of an acquisition cost, the money spent on the acquisition is considered the cost.

A total of $1500 per day is spent producing 10 air conditioners.

$250 is the daily cost of creating an extra air conditioner.

Cost per day total for manufacturing 11th air conditioners

= Daily production costs for 10th air conditioners plus daily production costs for a single additional air conditioner

= $1500 + $250

Therefore, the cost of manufacturing the 11th air conditioner = $1750

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5 0
1 year ago
Maria purchased 100 shares of JAX stock for $30 per share and sold this same stock one year later for $29 per share. She paid co
mihalych1998 [28]

Answer:

capital loss = ($195)

Explanation:

Maria's total investment = (100 x $30) + $50 = $3,050

Maria's return from selling the stocks = (100 x $29) - $45 = $2,855

capital loss = $2,855 - $3,050 = -$195

The revenue generated by the dividends is taxed as ordinary income (at a higher rate) and must be considered ordinary gains, not capital gains.

4 0
3 years ago
_____ offer goods to business customers. These business customers are too small to merit a sales call from the distributor s rep
Neporo4naja [7]
The answer is D. Cash and carry wholesalers

This type of business usually doesn't need to make any sales call because customers usually come, pay, and carry the product by themselves

Example of cash and carry wholesalers : Walmart , Carefour, Lotte, 
5 0
3 years ago
During the fiscal year ended 2016, a company had revenues of $520,000, cost of goods sold of $375,000, and an income tax rate of
7nadin3 [17]

Answer:

the net income is $92,800

Explanation:

The computation of the net income is given below:

Net income is

= Sales - cost of goods sold - tax rate on the remaining balance left

= $520,000 - $375,000 - (($520,000 - $375,000) ×0.36)

= $145,000 - $145,000 × 0.36

= $145,000 - $52,200

= $92,800

Hence, the net income is $92,800

8 0
2 years ago
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