Answer: Computer monitor
Explanation:
A complementary good is a good that's used together with another good. A good example of a complementary good is a car and petrol since they are used together.
A complementary good for computer hard drives would be the computer monitor. The monitor simply looks like a television and it helps in showing the information which is being displayed.
Answer:
The answer is: Expected annual net cash savings are $16,750.
Explanation:
Please find the below for detailed explanations and calculations:
Payback period is defined as the time it takes an investment to recover its initial investment.
In this case, the initial investment is the cost of software package at $67,000, while the payback period is four years.
We apply the payback period formula to calculate payback period to calculate the Expected annual net cash savings:
Payback period = Initial investment / Net cash flow per period <=> Net cash flow per period = Initial investment / payback period = 67,000 / 4 = $16,750.
So, Net cash savings annually is expected at $16,750. In other words, if the firm is to save $16,750 per year from owning the software, it will take the firm 04 years to recover its initial investment.
Answer:
year net cash flow
0 -$150,000
1 $80,000
2 $65,000
3 $50,000
4 $40,000
A) NPV = -$150,000 + ($80,000 x .87) + ($65,000 x .756) + ($50,000 x .658) + ($40,000 x .572) = -$150,000 + $69,600 + $49,140 + $32,900 + $22,880 = -$150,000 + $174,520 = $24,520
B) Yes , because the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 15%. Since the NPV is positive ($24,520), it means that the cash inflows are higher than the cash outflows when we use a 15% discount rate.
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~ The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments is known as •Confirmation Bias•.
