BUSINESS COLLEGE

A project will not produce any cash flows for two years. Starting in the third year, it will produce annual cash flows of $11,900 a year for two years. The project initially costs $43,600. In Year 6, the project will be closed and as a result should produce a final cash inflow of $50,500. What is the net present value of this project if the required rate of return is 8.7 percent?

Answers

Answer 1
Answer:

Answer:

The NPV of the project at 8.7 percent will be  4,802.58‬

Explanation:

We will calcualte the present value of the cash inflow:

(Inflow)/((1 + rate)^(time) ) = PV  

year 3:

Inflow     11,900.00

time          3.00

rate          0.087

(11900)/((1 + 0.087)^(3) ) = PV

PV    9,265.28

Year 4:

Inflow      11,900.00

time           4.00

rate           0.087

(11900)/((1 + 0.087)^(4) ) = PV  

PV   8,523.71

Year 6:

Inflow      50,500.00

time   6.00

rate  0.087

(50500)/((1 + 0.087)^(6) ) = PV  

PV   30,613.58

Then, we will add them together and subtract the investment amount

NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58‬

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Dimitry formats his memo so the four heading elements are positioned to the left of the page. This is an example of the design principle of_________-

Answers

Dimitry formats his memo so the four heading elements are positioned to the left of the page. This is an example of the design principle of alignment

Explanation:

The principle called alignment in designing refers to the way the elements are arranged relative to each other and to the page. There are different kinds of alignments used such as edge alignment,center, horizontal, vertical alignment and mixed alignment.

In the example given, Dimitry is formatting the memo in which the heading elements are positioned to the left of the page. Hence the design principle used by  Dimitry  will be the principle of alignment. This helps in creating a balance of elements and helpful of readers.

It costs Vaughn Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 4800 units at $21 each. Vaughn would incur special shipping costs of $2 per unit if the order were accepted. Vaughn has sufficient unused capacity to produce the 4800 units. Required:
(a) If the special order is accepted, what will be the effect on net income?

Answers

Answer:

Effect on income= $4,800 increase

Explanation:

Giving the following information:

Unitary variable cost= $18

A foreign wholesaler offers to purchase 4800 units at $21 each. Vaughn would incur special shipping costs of $2 per unit if the order were accepted.

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

Effect on income= 4,800*21 - 4,800*(18 + 2)= $4,800 increase

2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the economy than primary markets." Do you agree with this argument? Why, or why not?

Answers

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

Suppose GDP in this country is $900 million. Enter the amount for consumption. National Income Account Value (Millions of dollars) Government Purchases ( G ) 250 Taxes minus Transfer Payments ( T ) 325 Consumption ( C ) Investment ( I )

Answers

Final answer:

Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given time period. To find the amount for consumption, we need to use the basic GDP equation and calculate the values for taxes minus transfer payments and investment. The subject of this question is Economics and the grade is High School.

Explanation:

The subject of this question is Economics and the grade is High School.


Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given time period. In this case, the GDP is $900 million.

To find the amount for consumption, we need to use the basic GDP equation:

GDP = Consumption (C) + Investment (I) + Government Purchases (G) + Net Exports (NX)

Given that the GDP is $900 million and the government purchases are $250 million, we need to find the values for taxes minus transfer payments (T) and investment (I) to calculate the consumption (C).

Learn more about Gross Domestic Product here:

brainly.com/question/32169010

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Grant Company reported net income of $74,000 and sales revenue of $201,000 for the current year. The company also reported beginning and ending accounts receivable at $25,500 and $16,000, respectively. What was the amount of cash collected from customers?

Answers

Answer:

Cash Collected from customers = $210,500

Explanation:

As for the provided information,

To calculate the cash collected or received from customers, net income is not required,

Using all the remaining information provided,

Cash received or collected from customers = Opening Accounts Receivables + Sales Revenue for the year - Closing Accounts Receivables

We have,

Opening Accounts Receivables = $25,500

Sales Revenue = $201,000

Closing Accounts Receivables = $16,000

Now putting values in above equation we have,

Cash Collected from customers = $25,500 + $201,000 - $16,000 = $210,500

Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (DLHs) per unit of product 2 Budgeted finished units for the period 7,100 Actual number of finished units produced 5,700 Standard wage rate per direct labor hour (SP) $ 20.00 Direct labor costs incurred $ 234,000 Actual wage rate per direct labor hour (AP) $ 18.00 The direct labor efficiency variance for October, rounded to the nearest dollar, was: a. $32,000 unfavorable.

b. $20,600 favorable.

c. $26,000 favorable.

d. $3,200 unfavorable.

e. $52,600 unfavorable.

Answers

Answer:

a. $32,000 unfavorable

Explanation:

The computation of the direct labor efficiency variance for October is shown below:-

Direct labor efficiency variance = (Standard hours for actual production - Actual hrs) × Standard rate per hour

= (5,700 × 2 - $234,000 ÷ $18.00) × $20

= (11,400 - $13,000) × $20

= $1,600 × $20

= $32,000 unfavorable

Therefore for computing the direct labor efficiency variance for October we simply applied the above formula.
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