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Yakvenalex [24]
3 years ago
10

Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The

investment costs $54,000 and has an estimated $7,200 salvage value. Assume Peng requires a 10% 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.)
Business
1 answer:
daser333 [38]3 years ago
3 0

Answer:

NPV = $-42,124.72

Explanation:

The new present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =  $-54,000

Cash flow each year in year 1 and 2 = $2,600

Cash flow in year 3 = $2,600 +  $7,200 = $9,800

I = 10%

NPV = $-42,124.72

To find the NPV using a financial calacutor:

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

I hope my answer helps you

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kozerog [31]

Answer:

I belive it would be A

Explanation:

This most matches the defenition

3 0
2 years ago
Revenue and Cash Receipts Journals Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month
galben [10]

Answer and Explanation:

The Preparation of revenue Journal and cash receipts Journal is shown below:-

                                        Revenue Journal

Date         Invoice     Debited accounts    Accounts received Dr,

<u>                  number                                      Fees earned Cr,</u>

<u>March 2       512          Santorini Co.                   $905</u>

<u>March 8       513           Gabriel Co.                      $220</u>

<u>March 12      514           Yarnell Inc.                      $845</u>

<u>March 20     515          Electronic Central Inc.     $195</u>

<u>March 31                            Total                           $2,165</u>

                        Cash Receipts Journal

Date      Accounts    Post ref.   Fees          Accounts          Cash Dr,

<u>               credited                    earned Cr,  receivable Cr,                   </u>

March 4   CMI Inc.                                        $205                  $205

<u>March 19  Yarnell Inc                                   $555                   $555</u>

March 28 Marshall Inc.

<u>               (Fees earned)             $160                                        $160</u>

<u>March 29 Santorini Co.                                $905                   $905</u>

March 31 McCleary Co.

<u>               (Fees earned)            $85                                           $85</u>

<u>                            Total              $245         $1,655                    $1,910</u>

8 0
3 years ago
One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the re
zheka24 [161]

Answer:

Gross Domestic Product

= $500

<em>GDP is the final value of goods and services. The haircut is valued at $500 so is GDP. </em>

Net National Product:

= GDP - Depreciation

= 500 - 80

= $420

National Income

= $420

<em>This is the income that a resident of the country earns and $420 is what Barry earned in net income.</em>

Personal Income

= National income - Retained earnings

= 420 - 120 - 50

= $250

Disposable Personal Income (Dollars)

= Personal income - income taxes

= 250 - 90

= $160

4 0
3 years ago
How much money is wasted on fraudulent health products each year.
Lubov Fominskaja [6]

Answer:

60 billion

Explanation:

This might help you: The National Health Care Anti-fraud Association (NHCAA) conservatively estimates that 3 percent of all health care spending, or $60 billion, is lost to health care fraud.

Hope this helps :)

Have a nice day!

8 0
2 years ago
When preparing the retained earnings statement, the beginning retained earnings balance can always be found a. in the general le
marta [7]

Answer:

a. in the general ledger

Explanation:

When preparing the retained earnings statement, the beginning retained earnings balance can always be found in the general ledger.

5 0
3 years ago
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