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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

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Answer:<em> Option (D) is correct </em>

Explanation:

To weaken the conclusion, the answer will emphasize on why Baurisia will not soon become an importer of grain.  

Here, in this case if importing meat is cheaper than importing grain, then Baurisia is likely to satisfy the demand for meat by becoming an importer of meat, weakening the conclusion that Baurisia will soon become an importer of grain.  

<em>Therefore , It is more economical for Baurisians to import meat than grain, if true, most seriously weakens the argument.</em>

7 0
4 years ago
Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His
Alinara [238K]

Answer: $132,000

Explanation:

Oscar's new basis on the building will be the basis of the old building plus any additional investment he added.

This is the because there is no gain on the $140,000 he received because it was an Involuntary Conversion amount and he reinvested it into another building within a period of 2 years.

As there is no gain, the building will retain it's original basis but will add any amount outside the involuntary replacement cost of the building.

The Additional basis will be,

= Cost of building - Insurance

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= $2,000

The Basis for the new building is,

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3 0
3 years ago
What are five things you can do to overcome stereotypes?
svlad2 [7]

Explanation:

First of all we need to know what stereotype actually is. So stereotype is basically the over generalized belief of someone about something or someone else based on some assumptions. The simplest example of stereotype can be seen as, 'A woman is always caring'. This is a stereotype about a particular group of human beings. So there are a lot of other stereotypes too which prevails in our societies. Now we have to overcome such stereotypes by doing the following things:

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  • Find famous people to give examples of, who think stereotypes are wrong
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3 years ago
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Which event occurs in the large intestine?
OLEGan [10]
The main function of our large intestine is to absorb the water that is present in the insoluble food components we take in and its by-product would be the waste that is excreted from the body as faeces. The large intestine is followed by the anus and is preceded by the small intestine.
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3 years ago
The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic p
nydimaria [60]

Answer:

a. outsourcing

Explanation:

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It should be noted that The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic production is called outsourcing

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