What are the driving forces behind globalism (multiple answers)

A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time:

s344n2d4d5 [400]

A) The company should not invest in the provided project due to the negative NPV of the project.

B) The NPV of the project comes out to be (286).

NPV is an abbreviated form of Net present value and computed by deducting the cash outflows from cash inflows at the present value.

Given values:

Cash flow of year 1: $10,000

Cash flow of year 2: $10,000

Cash flow of year 3: $2,000

Cash outflow (cost of investment) =$20,000

Step-1 Computation of PV of cash inflows of every year:

PV of year 1 = Cash inflow of year 1 / (1+ interest rate)^ 1

= $10,000 / (1+0.07) ^ 1

= $10,000 X 0.934579

= $9,346

PV of year 2 = Cash inflow of year 1 / (1+ interest rate)^ 2

= $10,000 / (1+0.07) ^ 2

= $10,000 X 0.873438

= $8,735

PV of year 3= Cash inflow of year 1 / (1+ interest rate)^ 3

= $2,000 / (1+0.07) ^ 2

= $2,000 X 0.816297

=$1,633

Step-2 Computation of total amount of PV of cash inflows:

$\rm\ PV \rm\ of \rm\ cash \rm\ inflows = \rm\ PV \rm\ of \rm\ year \rm\ 1 + \rm\ PV \rm\ of \rm\ year \rm\ 2 + \rm\ PV \rm\ of \rm\ year \rm\ 3\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$9,346 + \$8,735 + \$1,633\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$19,714$

Step-3 Computation of NPV:

$\rm\ NPV=\rm\ PV \rm\ of \rm\ cash \rm\ inflows- \rm\ Cost \rm\ of \rm\ investment\\\rm\ NPV=\$19,714-\$20,000\\\rm\ NPV=\$ (286)$

Therefore, the NPV comes out to be a negative amount of 286, and hence, the company should not accept the project.

Learn more about the net present value in the related link:

brainly.com/question/14015430

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5 0

2 years ago

True or false: When a capital investment decision is being made between two or more alternatives, the project with the shortest

Flura [38]

Answer:

False

Explanation:

The payback period refers to the specific period of time that it is required to recover the amount invested and it is an important factor to take into account but the project with the shortest payback period is not necessarily the most desirable investment because other factors are also considered, for example, the expected profit and the conditions in the environment that may affect the assumptions made. Because of that, the answer is that the statement is false.

3 0

3 years ago

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of the assemblies, the XOminus01, h

Molodets [167]

Answer:

$1,975 per year

Explanation:

The first step is to calculate Economic order quantity using the following formula:

Economic Order Quantity = √2DO / H

Here

A is Annual Demand which is 12,000 Units.

O is Ordering Cost per order $650 per order.

H is Holding or Carrying Cost per unit per year is $30 per unit per year.

By putting values, we have:

Economic Order Quantity = √(2 * 12,000 * $650) / 30 = 131.66 units

Now annual inventory holding costs can be calculated using the following formula:

Inventory Holding Cost = Average Inventory * Holding Cost

Here,

Average Inventory = EOQ /2 = 131.66 / 2 = 66 units

By putting values we have:

Annual Inventory Holding Cost = 66 * 20 = $1,975 per year

5 0

3 years ago

You are considering purchasing a new home. You will need to borrow $ 200 comma 000 to purchase the home. A mortgage company offe

Mnenie [13.5K]

Answer:

Monthly installment = $2,202.17

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest. </em>

The monthly installment is computed as follows:

Monthly installment= Loan amount/annuity factor

Loan amount = 200,000

Annuity factor = (1 - (1+r)^(-n))/r

r -monthly rate of interest, n- number of months

r = 1% = 0.01, n = 20× 12 = 240

Annuity factor = ( 1- 1.01^(-240) )/0.01 = 90.81941635

Monthly installment = 200,000/90.819 = 2,202.172

Monthly installment = $2,202.17

8 0

3 years ago

At the end of a particular operating period, suppose Brenda (the manager) sits down with Ethan (the employee) and they meet t

Angelina_Jolie [31]

Answer:

Evaluate performance

Explanation:

The mbo process is a time where an employee and manager work together and sets record for a particular period of time.

This step in the mbo process is evaluation of performance. Under this step, the manager reviews the work of the employee from the question, this is what Brenda is doing with Ethan. She is evaluating his performance.

8 0

3 years ago