All categories

3 years ago

Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results:

Business

1 answer:

lukranit [14]3 years ago

6 0

Answer:

$-1304.20

Explanation:

We are to calculate the Net present value of the investment

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

0 -$105,000

1 $26,000

2 $25,000

3 $24,000

4 $23,000

5 $22,000

6 $21,000

7 $20,000

8 $19,000

9 $18,000

10 $17,000

11 $16,000

12 $15,000

13 $14,000

14 $13,000

15 $12,000

16 $11,000

17 $10,000

18 $9,000

19 $8,000

20 $7,000

I = 20%

NPV= $-1,304.20

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

Below is budgeted production and sales information for Flushing Company for the month of December: Product XXX Product ZZZ Estim

Naily [24]

Answer:

Production Budget for Product XXX is 514,400 (units)

Production Budget for Product ZZZ is 392,200 (units)

Explanation:

To Calculate the production Budget we use the formula

Sales + desired Ending Inventory - Opening Inventory= Budgeted Production.

Flushing Company

Production Budget

For the month of December

Product XXX

units

Region I, anticipated sales 320,000

Region II, anticipated sales 189,000

Total Sales for Product XXX 509,000

Add Desired ending inventory 34,100

Less Estimated beginning inventory 28,700

Production Budget (units) 514,400

Flushing Company

Production Budget

For the month of December

Product ZZZ

units

Region I, anticipated sales 250,000

Region II, anticipated sales 147,000

Total Sales for Product ZZZ 397,000

Add Desired ending inventory 14,500

Less Estimated beginning inventory 19,300

Production Budget (units) 392,200

4 0

3 years ago

bank examiners are _____. a) authorized to force banks to sell off investments that they consider excessively risky. b) only per

Leni [432]

Bank examiners are : Authorized to force banks to sell off investments that they consider excessively risky
Bank examiners act like some sort of auditor for the bank whose duty is to impose all bank's regulation

hope this helps

7 0

3 years ago

A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pays $800,000 in annual fixed

Elodia [21]

Answer:

It is cheaper to make the units in-house by $300,000.-

Explanation:

First, we need to calculate the total avoidable production costs of making 300,000 units:

Total variable cost= 300,000*15= $4,500,000

Total avoidable fixed cost= 800,000 - 200,000= $600,000

Total production cost= $5,100,000

Now, the total differential cost of buying:

Cost of buying= 300,000*18= $5,400,000

It is cheaper to make the units in-house.

5 0

3 years ago

The time value of money implies that a dollar received today is worth ________ a dollar received tomorrow.

laiz [17]

More!
I had this question before

8 0

2 years ago

Windsor Co. is building a new hockey arena at a cost of $2,420,000. It received a down payment of $510,000 from local businesses

viktelen [127]

Answer:

Dr Cash $2,032,577.26

Cr premium on bonds payable $122,577.26

Cr bonds payable $1,910,000

Explanation:

First and foremost the proceeds received from the bond issuance needs to determine the pv formula in excel as follows:

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of 9%

nper is the number of annual coupons payable by the bond which is 10

pmt is the amount of annual coupon i.e $1,910,000*10%=$191000

fv is the face value of the bond which is $1,910,000

=-pv(9%,10,191000,1910000)=$2,032,577.26

premium on bonds issuance= 2,032,577.26-1,910,000.00= $122,577.26

3 0

3 years ago