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melomori [17]
3 years ago
11

A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000

in
year 3. The discount rate is 12%.
a. What is the value of the factory? (Do not round Intermediate calculations, Round your answer to 2 decimal places.)
Value of the factory
b. Is the factory a good investment?
Yes
O No
Business
1 answer:
max2010maxim [7]3 years ago
7 0

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

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5 0
3 years ago
Cassidy is planning to obtain a loan from her bank for $210,000 for a new home. the bank has approved cassidy’s loan at a fixed
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Cassidy's approximate monthly payment stands at $1420. if Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.

<h3>What is the payment monthly?</h3>

The monthly payment is the quantity paid per month to pay off the loan in the time period of the loan. When a loan is taken out it isn't only the top amount, or the original payment loaned out, that needs to be repaid, but also the good that accumulates.

<h3>What is a loan amortization schedule?</h3>

It is described as the systematic method of representing loan payments according to the time in which the principal amount and interest exist mentioned in a list manner

It is given that:

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The formula is:

P=F_{P} (i)/1-(1+i)^{-1}

Plug all the values in the above formula:

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$1420.

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Cassidy's approximate monthly payment stands at $1420.

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1: Brand Recognition: is the ability of consumers to confirm previous exposures to brand when they are presented the brand as a cue. For example, if you go to a store, will you be able to recognize the brand to which you have been already exposed?

2: Brand Recall: It is the consumers ability to retrieve the brand from their memory if they are given product category or usage occasion as a cue. For example, when you think of carbonated drink, then what brand comes into your mind?

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The first step in the screening process for potential markets and sites is to a. Identify the basic appeal of a market b. Select
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C. The first step in the screening process for potential markets and sites is to identify the basic appeal of a market.

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