Answer:
-$8,705
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $110,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 4 years at 12%
= $30,000 × 3.0373
= $91,119
Refer to the PVIFA table
And, the salvage value would be
= Salvage value × pvif for 4 years at 12%
= $16,000 × 0.636
= $10,176
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Now put these values to the above formula
So, the value would equal to
= $91,119 + $10,176 - $110,000
= -$8,705
Answer: The answer that is correct is the last one, which is shape.
I hope this helped!
Answer:
$936.33 Million
Explanation:
Current sales = $525 millions
Growth rate = 7.5%
Number of years = 10 years
Sales after 8 year = Current sales x 
Sales after 8 year = $ 525 million x 
Sales after 8 year = $ 525 million x 
Sales after 8 year = $ 525 million x 
Sales after 8 year = $ 525 million x 1.783477826
Sales after 8 year = $ 936.33 million
Answer:
2.4 years
Explanation:
Years Cash Cumulative Cashflow
1 8000 8000
<u>2 6000 14000</u>
3 5000 19000
4 4000 25000
5 <u>5000</u> 30000
<u>30000</u>
Payback period = 2 years + (16,000 - 14,000) / 5,000
Payback period = 2 years + 0.4 years
Payback period = 2.4 years
