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
Hitman42 [59]
3 years ago
13

financial calculator Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a resu

lt. This expansion requires $66,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $5,600 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12 percent?
Business
1 answer:
Ann [662]3 years ago
5 0

Answer:

NPV = 138,347.55

Explanation:

<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>

We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:

<em>Prevent Value of  operating cash flow</em>

PV =A× (1- (1+r)^(-n))/r

A- 23,900, r - 12%, n- 5

PV = $23,900 × (1- (1.12)^(-5))/0.05

=206,769.963

<em>PV of Working Capital recouped</em>

PV = 5600× 1.12^(-5)

    = 3,177.59

NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow

NPV = (66,000) + (5600) + 3,177.59 + 206,769.96

NPV = 138,347.55

You might be interested in
For years Print and Copy, a copier machine supplier, enjoyed strong sales and a huge share of the copier market, far ahead of it
anzhelika [568]

Answer:

<h2>The answer, in this case,would be option D. given in the answer choice or closed.</h2>

Explanation:

  • A closed system strategy basically signifies a confined and a non transparent business strategy which is characterized by a limited interaction between the concerned company or business organizations and its customers.
  • Under the closed system, the companies or business organizations often stick to their traditional or conventional products and services and are usually not open or receptive to contemporary and recent market trends and patterns adopted by their competitors.
  • In this case, Print and Copy mostly relies on their selling existing product lines which have traditionally yielded higher revenue and consolidated company's market share in the industry in comparison to its market competitors. It also doesn't depend much on product modification based on respective customer feedback and reviews to enhance customer satisfaction and market goodwill or reputation,thereby,exhibiting infrequent and limited business and customer interaction.
4 0
3 years ago
What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month? set all to zero ex
zubka84 [21]

What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month set all to zero except $800-$999 medicare $100, internet $50, telephone $50. food $600.The amount paid to an employee in a month before taxes or other deductions is known as gross monthly income.

The amount is specified in both job offer letters and paychecks. Overtime, bonuses, and commissions are all possible sources of additional gross monthly income. Gross pay is related. Your gross income will also help you budget and figure out how much money you'll have to save for retirement.

To learn more about gross income, click here

brainly.com/question/547727

#SPJ4

8 0
2 years ago
What does it mean if a company has a debt ratio of 101.5%?
7nadin3 [17]

Explanation:

Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.

6 0
3 years ago
Robyn and Austin are co-owners of a tract of land that they plan to sell one day. A court would likely find that their co-owners
uranmaximum [27]

Answer:

d) joint property ownership

Explanation:

A partnership is created by two or more individuals who combine resources, skills, and energies to start a business. The motive for starting the business is profits.  The partnership deed guides the formation of a partnership business. Partners may also draft an agreement on how they will share profits, losses, or assets should be business be dissolved.

Partners contribute capital required to start and operate the business. The capital contributed may be in the form of cash, assets, or properties.  The contributed capital becomes part of the business assets. The assets are registered under the partnerships' name. For Robyn and Austin, the land will be in the name of their business if they have a partnership business.  But if they jointly own the land, a court may rule that they are not in a partnership business.

8 0
4 years ago
Alexa has a commercial laundry service that has been growing rapidly. She wants to continue to grow the business, but she needs
Contact [7]

Answer:

Incorporating

Explanation:

4 0
3 years ago
Other questions:
  • What is the most common reason for failure to pay regular child support as indicated by the text?
    8·1 answer
  • When the economy is doing badly, which of the following workers is NOT likely to have fewer customers or patients who want their
    8·2 answers
  • Prepare general journal entries to record the following transactions for the Harris
    13·2 answers
  • On December​1, Mountain and Meadow Tree Service prepaid $6,600 for six​ months' rent. Give the adjusting entry to record rent ex
    10·1 answer
  • What is the primary reason for using career clusters
    13·1 answer
  • Secret Prizes Inc. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plast
    6·1 answer
  • A popular clothing brand has released a new range of pants. The brand manager wants to target several sections of youth with thi
    11·1 answer
  • The fixed cost of a production system is $20,000, and the variable cost per unit product is $17. The product has a revenue of $2
    11·1 answer
  • Hilton Company manufactures two products: Product A100 and Product X500. The company currently uses a plantwide overhead rate ba
    8·1 answer
  • The stages of formation of the Psalter may be compared to a(n) _______ .
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!