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
Scrat [10]
3 years ago
6

An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery c

osts $350 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $300 each year for 5 years and project outflows will also begin in one year and are expected to be $135 each year for 5 years. The corporate tax rate is 36% and the required rate of return is 8%. Calculate the project's net present value.
Business
1 answer:
Nikolay [14]3 years ago
6 0

Answer:

$172.25

Explanation:

initial outlay for the project = -$350

cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80

using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25

we can also do it manually:

NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25

You might be interested in
What two steps can you take to help correct this? UC is having issues using Informatica Cloud Louder to export +10MOrder records
Ilia_Sergeevich [38]

Answer:

b, c

<u>Explanation</u>:

Remember, the number of order is quite large over 10 million. Therefore, the best step to carry out is

1. Export in multiple batches: This implies that instead of trying to export the whole batch at once, which might not be possible it is best to export in fewer batches.

2. Use PK Chunking: This method involves the use of an <em>automated system</em> that reduces large orders into smaller chunks.

7 0
2 years ago
When comparing economic, political, and environmental push and pull factors, which of the following is most accurate?
lapo4ka [179]
I had to look for the options and here is my answer. In the comparison of political, economic and environmental push and pull factors, we can say that the statement that shows accuracy related to this is this: "the most common environmental push factor is water." (This answer is based on the actual options attached to this question.)
4 0
3 years ago
Population growth is highest in which countries answers apex
Umnica [9.8K]
Countries with little money (apex) earth scince [sem2]
6 0
3 years ago
Read 2 more answers
The sec filed civil false-certification charges against which u.s. financial institution
drek231 [11]
If these were the given choices:
A) Wells Fargo
B) Countrywide
C) J.P. Morgan Chase
D) Bear Sterns
My answer would be C) J.P Morgan Chase The SEC filed civil false-certification charges against J.P Morgan Chase because they misled investors into investing in a complex mortgage securities transaction during the time when the housing market was starting to go down. J.P Morgan Chase agreed to pay a settlement that will reimburse the affected investors their total investments.
7 0
3 years ago
Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual reve
Pachacha [2.7K]

Answer:

The question does not include any requirements, so I looked for similar questions:

  1. Use the least squares method to develop the estimated regression equation.
  2. For every additional car placed in service, estimate how much annual revenue will change.

1) Y = -14.95 + 12.82X

2) for every 1 thousand cars put into service, revenue should increase by $12.82 million.

See attached PDF for calculations

Download pdf
7 0
3 years ago
Other questions:
  • When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________. third-degr
    11·2 answers
  • Because colgate owns patent number 5,547,091, only colgate sells toothpaste with a flip-top cap, while others use the more tradi
    10·1 answer
  • You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and th
    15·1 answer
  • Hurricane katrina damaged a large portion of refining and pipeline capacity when it swept through the gulf coast states in augus
    12·1 answer
  • É uma estratégia competitiva que busca alcançar retornos máximos dos produtos que estão na fase de declínio do seu ciclo de vida
    7·1 answer
  • What are the tax liability, the marginal tax rate, and the average tax rate for a married couple filing jointly with $51,900 tax
    6·1 answer
  • Among United States' major trade partners in 2014, a trade ______ occurred only with _____. The United States also had the large
    7·1 answer
  • When do shortages occur? When many people are unemployed. Whalen people have trouble supplying the goods and services at curt pr
    6·2 answers
  • If bagels and donuts are substitutes, then a decrease in the price of donuts will result in:Multiple ChoiceAn increase in the de
    10·1 answer
  • why do students need to study information technology? group of answer choices information technology is everywhere in business i
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!