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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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Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 4
boyakko [2]

Answer:

d. 96,000

Explanation:

Provided required rate of return on investments of $800,000 = 12%

Now desired profit = $800,000 X 12% = $96,000

therefore when fixing the price per unit this profit shall be added, and then reverse calculation is done.

With this we can get the desired profit.

At the last the total of cost and profit shall be divided by number of units to get the selling price per unit.

Therefore desired profit in dollars = $96,000

6 0
3 years ago
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Jason and Mary are married taxpayers in 2019. They are both under age 65 and in good health. For 2019 they have a total of $41,0
Elis [28]

Answer:

a. Adjusted Gross income is calculated as;

= Wages + Interest - Deduction

= 41,000 + 700 - 5,000

= $36,700

b. The couple will pick their Standard deduction in 2019 because its more than the itemized deduction.

Standard deduction for couples in 2019 = $24,400

c. I assume you mean their 2019 taxable income which is;

= Adjusted Gross income - Standard deduction

= 36,700 - 24,400

= $12,300

<em>Note; As of 2018 there are no more personal deductions. </em>

7 0
3 years ago
Gavin's position at Pharma-Tech involves purchasing complex manufacturing components, making decisions based on technical data,
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2 years ago
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Answer:

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8 0
3 years ago
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Alliance Company budgets production of 35,000 units in January and 39,000 units in the February. Each finished unit requires 4 p
harkovskaia [24]

Answer:

$506,800

Explanation:

The calculation of budgeted materials cost is shown below:-

For computing the budgeted materials cost first we need to find out the total materials for production and materials to be purchased which is here below:-

Total materials for production = Budgeted production × Pounds of raw material per unit

= 35,000 × 4

= 140,000

Materials to be purchased = Total materials for production + Ending raw materials inventory - January 1 inventory

= 140,000 + (39,000 × 4 × 30%) - 42,000

= 140,000 + 46,800 - 42,000

= 186,800 - 42,000

= 144,800

Budgeted materials cost for January = Materials to be purchased × Cost per pound

= 144,800 × $3.50

= $506,800

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2 years ago
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