Consider a project that requires an initial investment of $99,000 and will produce a single cash flow of $149,000 in four years a. What is the NPV of this project if the four-year interest rate is 5.1% (EAR)? b. What is the NPV of this project if the four-year interest rate is 10.2% (EAR)? c. What is the highest four-year interest rate such that this project is still profitable? a. What is the NPV of this project if the four-year interest rate is 5.1% (EAR)? The NPV in this case (EAR=5.1%) is $ (Round to the nearest dollar)
Answers
The initial investment for a project is $99,000, and it will yield a single cash flow of $149,000 in four years. The EARs for four-year interest rates are 5.1% and 10.2%, respectively. Furthermore, we will determine the highest four-year interest rate at which the project remains profitable.
Below are the answers to each part of the problem.A. NPV of this project if the four-year interest rate is 5.1% (EAR):Using the following formula, we can compute the NPV of the project at 5.1 percent:NPV = - Initial investment + (Single cash flow / (1 + EAR)^n)NPV = - 99000 + (149000 / (1 + 0.051)^4)NPV = $23,081 (rounded to the nearest dollar)
Therefore, the NPV of the project at 5.1% is $23,081.B. NPV of this project if the four-year interest rate is 10.2% (EAR):Using the following formula, we can compute the NPV of the project at 10.2 percent:NPV = - Initial investment + we will use a trial and error approach to determine the highest interest rate that makes the NPV equal to zero.Using a spreadsheet, we get:Therefore, the highest interest rate that will keep the project profitable is 7.73 percent.
To know more about initial investment visit:
brainly.com/question/31056377
#SPJ11
Related Questions
If you are a manager and you are facing crises, how will you communicate the information to your employees
Answers
Answer:
The following are methods I could communicate the information to my employees:
1. I will need to analyze the kind of crises, in other words, define the crises I'm facing so as to know how to share them with my employees.
2. What I hope to achieve by communicating the information to my employees is also to be considered. Am I sharing this information to get advice from them, or do I want empathy, or do I want them to learn?
3.The way I communicate the information would also depend on the relationship I have with my employees.
4. I would call all my employees into my office or conference room noting I don't do this when they are tired or stressed so I could get maximum attention from them.
5. All employees regardless of their position would be present.
6. After communicating with them on the crises I'm facing, I would wait for feedback which might be corrections, advice, observations, and solutions.
7. I would be open to feedbacks to emphasize how much I care about hearing from my employees at all levels
Explanation:
When you are a manager and you are facing crises, the way you communicate the information to your employees would be much different from communicating to the same employees if you are handling a crisis situation in the company.
In an Italian sonnet, the _________________ presents an argument that contradicts the argument of the _________________, which are the eight lines that come before it g
Answers
In an Italian sonnet, the sestet presents an argument that contradicts the argument of the octave, which are the eight lines that come before it.
The Italian sonnet, also known as the Petrarchan sonnet, is a 14-line poem with a specific rhyme scheme and structure.
It consists of an octave (eight lines) followed by a sestet (six lines). The octave typically presents a situation, problem, or argument, while the sestet serves as a resolution or counterargument.
The sestet in an Italian sonnet often presents an argument that contradicts or challenges the argument presented in the octave. It provides a different perspective, resolution, or conclusion to the initial theme or problem introduced in the first eight lines.
This contrast between the octave and the sestet creates tension and adds complexity to the poem, allowing for a more nuanced exploration of the subject matter.
The sestet may offer a different interpretation, propose an alternative solution, or provide a contrasting viewpoint to the ideas presented in the octave.
This structure of presenting conflicting arguments within a sonnet allows poets to delve deeper into the complexities of their themes and engage the reader in a thought-provoking manner.
Learn more about Italian sonnet here:
https://brainly.com/question/3026426
#SPJ11
the company pays its telephone bill for the month. what affect would this have on an expense account?
Answers
The effect company would have on expense account would be: Expenses increase with a debit to "telephone expense."
A debit is an accounting entry that changes the balance sheet of a business by increasing assets or decreasing liabilities. In fundamental accounting, credits, which work in the exact opposite direction, counterbalance debits.
Depending on the loan's terms, a company might, for instance, simultaneously debit fixed assets and credit a liabilities account if it takes out a loan to buy equipment. All double-entry accounting systems have a feature known as a debit. Credits are the contrary of debits. Money is taken out of an account by making a debit, and money is put in by making a credit.
To learn more about debit click here
brainly.com/question/29830330
#SPJ4
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000.
Answers
The above approaches result in the same value for cash flow
Revenue $160,000
Rental Costs $30,000
Variable Costs $50,000
Depreciation $10,000
Profit before tax $70,000
Tax(35%) $24,500
Net Income $45,500
a) Dollars in minus dollars out
= Revenue - Rental costs - Variable costs - Taxes
= 1,60,000 - 30,000 - 50,000 - 24,500
$55,500
b) Adjusted accounting profits
Operating cash flow = Net income + depreciation
= 45,500 + 10,000
= $55,500
c) Add back depreciation tax shield
Operating cash flow
= [(Revenue - rental costs - variable costs) × (1 - rate of Dep)] + (depreciation × rate of dep]
= ( 160,000- 30000- 50,000) × 0.65 + 10,000 × 0.35
= 55,500
Complete Question -
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. Prepare an income statement for the shop based on these estimates. The tax rate is 35%. Calculate operating cash flow for the year by using all three methods: (a) Dollars in minus dollars out; (b) Adjusted accounting profits; and (c) Add back depreciation tax shield. Operating Cash Flow Method a. Dollars in minus dollars out b. Adjusted accounting profits c. Add back depreciation tax shield
Should all the above approaches result in the same value for cash flow.
a. Yes
b. No
Read more about cash flow on:
https://brainly.com/question/24179665
#SPJ4
Which is NOT a fee you need to worry about with a checking account?
Answers
Answer:
It depends on the bank provider. All bank providers have different fee policies.
Explanation:
There is no specifc answer to this.
What is tax topic 152 refund information?
Answers
Remember that just because this tax subject exists doesn't indicate your file was incorrect or you did anything illegal. It only indicates that your refund is still being processed and has not yet been accepted or denied.
No. The IRS tax code 152 is permitted on your transcript. If you have any questions, kindly get advice from your IRS agent. You can also talk to a tax specialist for further details. Tax Topic 152 2021 does a great job of attempting to inform a taxpayer who has requested a refund that their claim has been authorized and that they will get their money as soon as possible through direct deposit, cheque, or letter. Refunds for tax returns are typically processed and issued after 21 days. Processing your documentation might take up to 20 weeks if you have an amended return.
To learn more about tax click on the link below:
brainly.com/question/16423331
#SPJ4
the standard claim form used by hospitals to request reimbursement for inpatient and outpatient procedures performed or services provided is called the
Answers
The standard claim form used by hospitals to request reimbursement for inpatient and outpatient procedures performed or services provided is called the UB-04 form.
The UB-04 form, also known as the CMS-1450 form, is the standardized claim form used by hospitals to request reimbursement from insurance companies or government programs for inpatient and outpatient services.
This form includes information such as patient demographics, diagnosis codes, procedure codes, and billing information. It is important for hospitals to accurately complete the UB-04 form to ensure proper reimbursement for the services provided.
To learn more about reimbursement
https://brainly.com/question/28198103
#SPJ11
Damien, an HR manager at Guidelines Inc., is preparing for a 5 percent increase in the production labor force next year. To do this, he needs to determine what the current number of production employees is and how the number is likely to change by the end of the year. To help with this analysis, Damien should use a
Answers
The best analysis that Damien can used to determine the current number of production employees and how the number is likely to change is the transitional matrix.
What is the transitional matrix?A transitional matrix refers to an square matrix analysis tool that gives the probabilities of different states or condition going from one to another.
In conclusion, the transitional matrix will allows Damien to determine the current number of production employees and how the number is likely to change through probability analysis.
Read more about transitional matrix
brainly.com/question/14973565
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $ 232,800 $ 202,800 $ 54,800 Equipment 82,800 150,800 25,800 Lily's taxable income before these transactions is $193,300. What are Lily's taxable income and tax liability for the year
Answers
Lily’s taxable income for the year is $235,900, and her tax liability for the year is $45,152.50.
Calculation of taxable income and tax liabilityNote: See the attached photo for the proper arrangement of the table in the question.
These can be calculated as follows:
Profit on building = Sales price of building – (Cost of building – Accumulated Depreciation of building) = $232,800 – ($202,800 - $54,800) = $84,800
Loss on equipment = (Cost of equipment – Accumulated Depreciation of equipment) - Sales price of equipment –= ($150,800 - $25,800) - $82,800 = $42,200
Net profit = Profit on building - Loss on equipment = $84,800 - $42,200 = $42,600
Taxable income before transaction = $193,300
Total taxable income = Taxable income before transaction + Net profit = $193,300 + $42,600 = $235,900
In line with the tax rules, we have:
Tax Liability = ((Taxable income before transaction - $85,650) * 28%) + ((17,442 + Net profit) *25%) = (($193,300 - $85,650) * 28%) + (($17,442 + $42,600) *25%) = $45,152.50
Learn more about taxable income here: https://brainly.com/question/17961582.
#SPJ1
Skipper’s Pet Products was started by Steve to sell a range of dog food and treats made from fish. Due to fish being a very perishable product, different methods are used to preserve the life and quality of the product. Arguably, the best method, albeit the most labour intensive and time-consuming, is to dry the fish over several days. This process maintains the nutritional content of the fish, which is often lost using other methods, and it is this that enables Skipper’s to offer a product with a clear USP.
The company is based in Steve’s hometown of Grimsby and he is proud of the local fishing heritage. The fish used in Skipper’s products is sourced from the docks in Grimsby or nearby Hull. Steve says the location of the business means that raw materials and qualified labour are easy to source.
Skipper’s Pet Products have lots of competition, but the competitors buy low quality fish
in China and cook the treats at high temperatures which removes some nutrients so they
are not high quality, healthy dog treats like Skipper’s treats.
The company website allows Skipper’s to sell their dog treats to customers all over the UK. The website sales are increasing each month and generate a larger profit margin than Skipper’s sales to pet shops.
question: Evaluate whether locating Skipper’s close to raw materials was the most important
factor Steve should have considered when choosing a location for his business.
You should use your knowledge of the business as well as the information provided
Answers
Answer: Yes it was
Explanation:
When considering where you should set up location, it is best to look at the cost of locating your business from various perspectives such as raw material acquisition, transport to suppliers, transport to customers and accessibility.
Depending on the business, some factors would have to be given more weight. In the above scenario, raw material acquisition and transport from suppliers should be given a higher weight because the goods are perishable and so costs would be high if the location is too far from the source of the fish.
Given that technology has made it easier to sell from many places, transport to customers is not as major a factor as transport to suppliers. The most important factor to focus on for this business therefore is raw material acquisition and by locating the company so close to the source, the cost to acquire the raw material from suppliers was heavily reduced so this was the best option.
Robert receives a salary of $60,000 per year, or $2,500 semi-monthly. How
much does his employer pay for his unemployment tax for the entire year?
A. no limit
B. $0
C. $840
D. $420
Answers
Answer:
B. $0
Explanation:
Unemployment tax known as FUTA (The Federal Unemployment Tax act) is imposed on employers based on the wage and salaries they pay their employees. Employers who pay $1500 and above per calendar quarter are mandated to pay FUTA. Unlike other payroll-based taxes, employers are not required to deduct FUTA from employees. Therefore, nothing should be withheld from Robert's income as unemployment tax.
The world income appreciation fund has current assets with a market value of $5.2 billion, 525 million shares outstanding, and a current market price quotation of $10.65. calculate the front-end load
Answers
The front end load is found to be 7%
Given, that the market value of shares is $5.2 billion and no. of shares =525 million shares.
First, we calculate net asset value (NAV)of the fund by the formula,
(NAV) = Market Value of Shares/No.of shares outstanding
= $5.2 billion/525 million shares.
=$5,200,000,000/525,000,000
NAV = $9.9048.
Now, we calculate the front end load of the fund by the formula,
Front end load=[(Current market price-NAV)/Current market price]×100
=[($10.65-$9.9048)/$10.65]×100
=($0.7452/$10.65)×100
Front end load= 6.9972% or 7%
The net asset value of an investment fund is calculated by dividing the number of outstanding shares by the net value of the fund’s assets less its liabilities. Most frequently applied to mutual funds or exchange-traded funds (ETF).
A front-end load is a commission or sales fee that is imposed at the moment an investment is first purchased.
To learn more about Net asset value, refer this link.
https://brainly.com/question/9952004
#SPJ4
HELP! If the price of an Economics e-text was equal to $45.00 and the quantity sold was equal to 125, then the total revenue would equal $3,625. True or False?
Answers
Answer:
T
Explanation:
What is the definition of customer service?
A. The advice provided by a customer service rep over the phone.
B. The advice given between employees to help customers.
C. The assistance provided by a company to people who buy or use its products or services.
D. The assistance provided by a sales rep on the sales floor.
Answers
Write a 100-word draft of the memo, keeping in mind the formatting rules you have learned. Because this memo is short, it doesn't need a summary.
Answers
To: All employees
From: Nicole Jackson, Sr. Hiring Manager
Date: February 28, 2018
Subject: Change in dress code policy
Please note the following change in the dress code policy, which will take effect immediately. We request that employees not wear flip-flops or sandals while at work.
The way our employees dress at work represents our company’s culture and work ethic. While our office is business casual, flip-flops and sandals are not appropriate business casual shoes. Clients and visitors may interpret wearing this footwear as unprofessional.
We request that you help the company project a professional image.
Write down the career you want to pursue and identify which of the four assessments you learned about in the lesson you need to take for your career.
Answers
Answer:
Explanation:
As a chartered accountant, I want to pursue a career in accounting and finance. From the lesson I learned about, I believe I need to take the following four assessments to further my career:
Aptitude test: This assessment will evaluate my cognitive abilities and problem-solving skills, which are important for success in the field of accounting and finance.
Personality test: This assessment will help determine my personal strengths, values, and communication style, which are important qualities for a chartered accountant to possess.
Interest inventory: This assessment will help me understand my interests and passions, which can guide my career path as a chartered accountant.
Work style assessment: This assessment will help me understand my work habits and preferences, which can inform my approach to tasks and projects as a chartered accountant.
Answer:
I want to teach English literature and therefore I want to become a professor at a reputed university. I will have to take the SAT exam in order to get admission in a good college.
Explanation:
One problem in relying on price elasticity and demand curves when setting prices is the way a product or service is marketed can have a profound impact on price elasticity. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. only economists can properly analyze demand curves and set prices using this tool. competitors can construct the same demand curves, so there is no advantage in using them. marketing split from economics over the ideas of demand and elasticity.
Answers
Answer: the way a product or service is marketed can have a profound impact on price elasticity.
Explanation:
What determines the prices of the market is the demand, this affects the price elasticity. Price elasticity and demand curves are the result of various factors, and in most scenario they determine the pricing factor in the market.
One problem in relying on price elasticity and demand curves when setting prices is the way a product or service is marketed can have a profound impact on price elasticity.
The elements of products that may be changed to meet customer needs are features, usage, and _______. a. qualityb.promotionc.protectiond.production
Answers
The elements of products that may be changed to meet customer needs are features, usage, and C. protection. It is because the market taste is change in the periodic time based on their necessary.
In the term of economic market and also business, The changes in consumer taste generally can be defined as an increase in e-commerce as well as more demand for sustainable and inclusive products. The change in the economic market is the impact of the emergence of Gen-Z who cares more about the environment and social issues, businesses with a vision aligned with them will benefit greatly. The change in the watch market is significant because the market tastes will continue to change, whether by changing in the features, usage, or also protection.
Here you can learn more about change in market taste https://brainly.com/question/28633615
#SPJ4
Sort the ideas related to these two types of loans into the correct categories.
has more risk for the lender
Secured Loan
Unsecured Loan
is not backed with collateral
has less risk for the lender
can include a down payment
is backed with collateral
does not include a down payment
Secured loan
Unsecured loan
Answers
Answer:
Box 1
Can include a down payment
Is back with a collateral
Has less risk for the lender
Box 2
Is not backed with a collateral
Does not include a down payment
Has more risk for the lender
Explanation:on edge hope helps
Answer:
Box 1
Can include a down payment
Is back with a collateral
Has less risk for the lender
Box 2
Is not backed with a collateral
Does not include a down payment
Has more risk for the lender
Explanation:on edge hope helps
Uno dos one two e r
Chicken nuggets.
Answers
Answer:
i swim in points
Explanation:
bonqueque
Answer:
Explanation:
Do you think large multinational corporations in general like Wal-Mart, Apple, McDonalds and Frito Lay are good or bad for the world? Is "globalization" another word for “Americanization”? Why or why not? (3 points) Explain using complete sentences.
Answers
Answer:
I think multinational corporations in like these are bad. Because even people on diets or trying to diet, and people buy it for them not knowing its hard for them to say no.
Explanation:
Hope this helps!
3.
Kriti provided the following information.
$
13 400 debit
120 credit
21 600
At 1 January 2014
Trade receivables balances
Inventory
For the year ended
31 December 2014
Cash sales
Credit sales
Bad debts written off
Receipts from credit customers
Discount allowed to credit customers
Contra with supplier's account
Cheque refund to a credit customer
44 400
165 600
2 800
155 010
4 560
1 300
90
At 1 January 2015 Trade receivables balances
7 debit
200 credit
28 800
Inventory
Mark up on goods sold 50%.
REQUIRED
(a) Calculate Kriti's purchases for the year.
***
Answers
Answer:
2,000,000
Explanation:
What is a sales forecast?
A. A prediction of what other businesses will make similar products
B. A prediction of how many customers a business will have visit its
store
C. A prediction as to the volume of sales that a business expects to
make in the upcoming future
Answers
A sales forecast is A prediction as to the volume of sales that a business expects to make in the upcoming future. Thus the correct option is C.
What is the objective of the sales Forecast?A sales forecast is a projection of the engagements that will go through the selling process and is a statement of anticipated sales revenue that expresses how much your organization anticipates selling within a specific time frame.
Making well-informed choices about the management of the firm, including decisions about staffing and inventory, new product lines, and prospective marketing initiatives, is aided by sales predictions.
By the use of sales forecasting, firms can more correctly predict their expenses and revenue. Time and money wasted on unsuitable candidates or customers must be reduced for better prospecting.
Therefore, option C is appropriate.
Learn more about sales forecast, here:
https://brainly.com/question/15576475
#SPJ5
organizations conduct to identify the differences between the business requirements that emerge from strategic planning and the capabilities of the chosen enterprise resource planning system.
Answers
Organizations conduct a gap analysis to identify differences between their business needs resulting from strategic planning and the capabilities of their chosen enterprise resource planning system.
What is gap analysis and its example?Gap analysis is the process companies use to compare current performance with desired and expected performance. This analysis is used to determine whether companies are meeting expectations and using resources effectively.In an ERP implementation, this means taking a closer look at the software you're using or plan to use.For example, if a company wants to launch a marketing campaign to improve its reputation or apply for credit, it can conduct a market gap analysis to determine the impact on the local economy and use that data as part of the campaign or credit application. What tools are used for gap analysis?A variety of tools can be used for gap analysis, including: SWOT analysis, McKinsey 7s model, Fishbone diagram, Joint Nadler-Tushman model, PERT technology, Burke-Litwin change model.
To learn more about gap analysis visit:
https://brainly.com/question/15842766
#SPJ4
The present value of an investment is estimated at about $266,300. The expected generated free cash flow from the project for next year is $5,000 and is expected to grow 15% a year for the next four years following the first generated cash flow. After the fifth year, the growth rate is expected to drop to 4% in in perpetuity. Estimate the discount rate used in valuing this project.
Answers
This result doesn't make sense since the discount rate cannot be negative.
To estimate the discount rate used in valuing this project, we can use the present value formula:
Present Value = Cash Flow / (1 + Discount Rate)^n
Given that the present value of the investment is $266,300 and the expected generated free cash flow for next year is $5,000, we can substitute these values into the formula:
$266,300 = $5,000 / (1 + Discount Rate)^1
To find the discount rate, we need to solve for it. Rearranging the formula:
(1 + Discount Rate)^1 = $5,000 / $266,300
Simplifying:
(1 + Discount Rate) = 0.01879
Now, let's isolate the Discount Rate:
Discount Rate = 0.01879 - 1
Discount Rate = -0.98121
Learn more about discount
https://brainly.com/question/13501493
#SPJ11
How do increased prices serve as an incentive for businesses?
Answers
Answer:
see below
Explanation:
Price is the amount of money that a customer pays to acquire goods or consume services from a seller. The price has two significant elements:
the cost of making the goods or servicesThe suppliers desired profit.As per the law of supplies, higher profits is an opportunity for high profits. High price increases the profitability of goods and services. A high price has a bigger margin, meaning higher profits if the goods or services are sold. If prices increase, suppliers will be willing to supply more goods in the market with the expectation to make more profits. A decline in price is a warning that the business may make losses.
tillers and tiles corp. creates machines parts used in the agriculture industry. a primary activity in the operations of tillers and tiles corp. would be
Answers
The Tillers and Tiles Corp. manufactures machinery components for the agricultural sector. Research & development would be a key component of tillers and tiles corp. operations.
What exactly are research and development?The creation of new knowledge is what research and development do. It is a task that businesses carry out in order to create new goods, methods, or services, or to enhance ones that currently exist. Businesses frequently assume risk in order to achieve this.
How are research and development defined?Businesses engage in research and development (R&D) when they want to produce new products or find ways to enhance the ones they already have. Larger businesses might have their own in-house research and development group that will evaluate and improve items or procedures prior to use in the marketplace.
To Know more about marketplace.
https://brainly.com/question/14943156
#SPJ4
___________ utilizes questions and seeks additional information to generate solutions.
Answers
The process you are referring to is called problem-solving.
To "seek" means to actively look for or search for something. In various contexts, seeking can refer to searching for information, answers, solutions, or opportunities. It involves an active and intentional effort to find what is desired or needed. Seeking often involves curiosity, exploration, and a willingness to engage in the process of discovery. It is a fundamental human behavior that drives learning, problem-solving, and personal growth. Seeking can take different forms, such as seeking knowledge, seeking advice, seeking opportunities, or seeking support. It is an essential aspect of human nature and drives progress and development in various areas of life.
Learn more about seeks here:
https://brainly.com/question/10000811
#SPJ11
Salesperson Larry is writing an advertisement for one of his listings. Which of the following phrases should he avoid?Choose matching definitionDesirable neighborhoodApartment complex with chapelMother-in-law suiteNo wheelchairs
Answers
The phrase that he should be trying to avoid would be No wheelchairs.
Advertising is a form of promotion where money is exchanged for visibility on behalf of a business, organization, or cause. Ads are shorthand for "commercials," which are the real promotional messages.
Marketing is meant to attract customers who are in the market for a product or service like the one being advertised and are willing to pay for it.
Identifying your ideal client in greater detail allows you to spend less on ads that reach more people in your target demographic.
To know more about advertisements:
https://brainly.com/question/1658517
#SPJ4
The right way of asking the question is:
Salesperson Larry is writing an advertisement for one of his listings. Which of the following phrases should he avoid?
A) Desirable neighborhood
B) Apartment complex with chapel
C) Mother-in-law suite
D) No wheelchairs
when deciding between two competing alternatives, the best capital budgeting method to use is the
Answers
When deciding between two competing alternatives in capital budgeting, the best method to use depends on various factors and the specific context of the decision.
Two commonly used capital budgeting methods are the Net Present Value (NPV) and the Internal Rate of Return (IRR).
The NPV method calculates the present value of expected cash flows and compares it to the initial investment. The alternative with the higher positive NPV is generally preferred as it indicates higher value creation.
It represents the return generated by the investment and is compared to the required rate of return. The alternative with an IRR higher than the required rate of return is typically preferred.
Learn more about capital budgeting,
https://brainly.com/question/23476099
#SPJ4