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
Valentin [98]
3 years ago
8

Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The

investment costs $45,300 and has an estimated $7,500 salvage value.
Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)
Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The investment costs $45,300 and has an estimated $7,500 salvage value.
Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)
Cash Flow Select Chart Amount x PV Factor = Present Value
Annual cash flow Present Value of an Annuity of 1 =
Residual value Present Value of 1 =
Net present value
Business
1 answer:
Sedbober [7]3 years ago
5 0

Answer:

$-7033.54

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = net income + deprecation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($45,300  - $7,500) / 3 = $12,600

Cash flow = $12,600 + $2000 = $14,600

Cash flow in year 0 = $-45,300

Cash flow in year 1 =  $14,600

Cash flow in year 2 =  $14,600

Cash flow in year 3 =  $14,600 + $7,500 = $22,100

I = 15%

NPV = $-7033.54

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

You might be interested in
Over the last four years, a stock has had an arithmetic average return of 8.8 percent. Three of those four years produced return
m_a_m_a [10]

Answer:

Geometric Average return = 7.83%

Explanation:

First we need to find the missing value of data using Arithmetic mean formula

Arithmetic Mean = Sum of value / No of values

8.8% = Sum of Values / 4

Sum of Values = 8.8% x 4

Sum Values = 35.2%

Using Sum of Values we minus the remaining values in order to get the missing value of the data.

35.20% - 16.3% - 10.2%-(14.1%) = 22.80%

In order to get Geometric mean value we use geometric mean formula

G.M = 4 Sqrt(16.3% x 10.2% x -14.1% + 22.80%)

Geometric Mean = 7.83%

6 0
3 years ago
while the washington family was gone for the weekend, their home was broken into and robbed. manny, a professional boxer who liv
Kisachek [45]

Manny's acts would be a past factor in any lawsuit he filed against Mr. Washington, so Manny would lose. Filipino boxer Manny Pacquiao competed as a professional from 1995 until 2021. regarded as one of the greatest professional boxers ever by boxing historians...

<h3>Where does Manny stand historically?</h3>
  • On ESPN's list of the top boxers, pound-for-pound, over the past 25 years, Pacquiao was placed second in 2016. Pacquiao is ranked by BoxRec as the third-best boxer of all time, pound for pound, and as the best Asian boxer ever.
  • A boxer who has won major world championships in eight different weight divisions is known as an octuple champion. The only boxer in history, Manny Pacquiao, has won twelve major world championships in just eight years.

To learn more about Manny pacquiao refer to:

brainly.com/question/28774013

#SPJ4

3 0
1 year ago
Leon Jones worked in the warehouse of a large building supply company. One day he unexpected left for Fiji, never to return. His
In-s [12.5K]

Answer:

=> Automated Signature Verification System.

=> Tracking of workers' appointment by the personnel department.

Explanation:

Forgery is a kind of fraud in which one changes name, signature or anything pertaining to another person in order to deceive other people. Forgery is a fraud and it is a criminal offence that should be stop in the society. Just as it is in the question above the supervisor is forging Leon’s name in order to be able to collect the money of someone that is no more working.

The two control techniques to prevent or detect this fraud scheme are given below:

=> Automated Signature Verification System : the company should have Automated Signature Verification System for their employees and customers so that with it they can easily detect forgery fraud and the person affected can be able to recover his or her losses.

=> Tracking of workers' appointment by the personnel department: the personnel department should track the appointment of each of their employees in any organization.

Other ways are to Install biometric time cards and make sure payroll record are verified and updated before payment.

4 0
3 years ago
A holder of a seller-server certificate serves an alcoholic beverage to an intoxicated person for a second time within a 12 mont
Hunter-Best [27]
According to the TABC, seller-server certification can be revoked if one is charged with breaking the laws concerning the sale of alcohol. The length of time that TABC certificate is revoked depends on the number of offenses committed within a period of 12 months. In this case, the holder made a second offence within 12 months, therefore, the holder will not be allowed to get a TABC certification again for 90 days. One is required to take some time off work since it appears he/she has a problem with breaking alcohol laws
5 0
3 years ago
You are analyzing an office building to determine if it make sense to build it. the building and site improvements cost $145 and
Sophie [7]

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot

total revenue per square foot =                                                      $11

proportional market vacancy and credit loss = $11 x 5% =        ($0.55)

<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

market net operating profit per square foot =                             $8.80

The project should be carried out since the net operating profit is larger than the investor's required rate of return.

7 0
3 years ago
Other questions:
  • "cat chaser. annette, who is angry because her neighbor, william, allows his dog to chase her cat, decides that she wants to get
    9·1 answer
  • Assume that atlanta co. is producing motorcycles and selling them to u.s. customers. atlanta co. obtains all of its supplies fro
    9·1 answer
  • A good economic theory___________.
    11·1 answer
  • Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed the inventory and cost
    15·1 answer
  • Greening refers to: a. Answer the need for more carbon dioxide in our air. b. firms acquiring more green backs (U.S. dollars) fr
    15·1 answer
  • Efficiency is:
    12·1 answer
  • Most of the procedural, or due process, rights given to criminal suspects or defendants in the United States are found in
    13·2 answers
  • A firm’s current profits are $ 400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent.
    5·1 answer
  • If Henry and Kate's Company has $300,000 of sales revenue, pays $50,000 in dividends, and has net income of $100,000, how much w
    11·1 answer
  • when the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually for a selling price of $
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!