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antoniya [11.8K]
3 years ago
14

Misty Mountain Shop is considering purchasing a new piece of equipment that would be used for 6 years. The cost savings from the

equipment would result in an annual increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and a salvage value of $100,000 at the end of its useful life. If the discount rate is 8%, what is the approximate net present value of purchasing this new piece of equipment?
Business
1 answer:
Allisa [31]3 years ago
8 0

Answer:

NPV = $ 87,592.90

Explanation:

Net present value is calculated by taking the Present Day (discounted) value of all future Net Cash Flow based on the Business Cost of Capital and subtracting the Initial cost of the Investment.

<u>Calculation of Net present value (Financial Calculator)</u>

Period and Cash flow

CF0   = ($900,000)

CF1    =  $200,000

CF2    =  $200,000

CF3    =  $200,000

CF4    =  $200,000

CF5    =  $200,000

CF6    =  $300,000

Cost of Capital = 8%

NPV = $ 87,592.90

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Answer:

The correct answer is letter "E": ​all of the above.

Explanation:

The Comprehensive Environmental Response, Compensation, and Liability Act or CERCLA forbids employers to retaliate against employees for participating in protected activities related to possible environmental laws and regulations violations in regards to cleaning of uncontrolled or abandoned hazardous waste, spillovers or another polluting agent that represents an emergency.

Under the CERCLA, <em>penalties can be imposed without reduction if the Environmental Protection Agency (EPA) finds out abut the situation, if the situation is resolved in ninety (90) days, </em>or <em>if there is a disclosure provided after a threat to take the case to Court</em>.

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4 years ago
Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit var
BabaBlast [244]

Answer:

Correct answer is D, Unit variable cost remains and unit fixed cost decrease

Explanation:

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4 0
3 years ago
Delia files a suit against Eduardo in a Florida state court over the ownership of a boat docked in a Florida harbor. Both Delia
harkovskaia [24]

Answer:

The answer is: D) is a more convenient location to hold the trial.

Explanation:

A change of venue happens when a case is transferred from a court in one location to a court in a different location. It can be requested if it is convenient for the parties in a lawsuit.

In this case both Eduardo and Delia live in Georgia, so if a trial is held there, they would need to travel and probably hire local lawyers which can be time consuming and expensive.  Eduardo can argue that by holding the case in Georgia benefits both Delia and him.

6 0
4 years ago
The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your e
Aleks [24]

Answer:

10% of exam score

Explanation:

Opportunity Cost is the cost of next best alternative, foregone (sacrifised)  while making a choice.

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Given : A night before mid time exam, spent while watching movies - later lead to fall in exam grade from 70 % to 60%

The opportunity cost of movies watched, is the sacrifised grade of exam, which would have gotten, if the time would have spent in studying. The corresponding grade lost = 70% grade achievable - 60% grade achieved. Hence, the opportunity cost = 10% of exam score.

4 0
3 years ago
Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizatio
Firdavs [7]

Answer:

Narrowed

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