1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?
2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?
3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.

Answers

Answer 1

Answer:

1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?

payback period = $31,500 / $12,000 = 2.625 years

2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?

using a financial calculator, the IRR = 8%

the IRR is the discount rate that makes a project's NPV = 0

3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.

depreciation per year = ($50,400 - $10,200) / 3 = $13,400

net cash flows:

year 0 = -$50,400cash flow year 1 = $3,400 + $13,400 = $16,800cash flow year 2 = $3,400 + $13,400 = $16,800cash flow year 3 = $3,400 + $13,400 + $10,200 = $27,000

NPV = -$50,400 + $16,800/1.1 + $16,800/1.1² + $27,000/1.1³ = -$50,400 + $49,442.52  = -$957.48


Related Questions

g Stock A has a beta of 1.5. Stock B has a beta of 1.2 and an expected return of 12 percent. If the risk-free rate is 2 percent and both stocks have equal reward-to-risk ratios, what is the expected return on stock A

Answers

Answer:

14.5%

Explanation:

The computation of the expected return on stock A is shown below:

Given that

The expected return of stock b = 12%

beta = 1.2

Now

risk free rate = 2% market risk premium

So as per CAPM, the expected return = risk free rate + beta × market risk premium

0.12 = 0.02 + 1.2 × market risk premium

1.2 × market risk premium = 0.10

So,

market risk premium is

= 0.10 ÷ 1.2

= 0.0833 or 8.33%

Since they have equal risk reward so the market risk premium would be same for stock A

Now

The expected return of stock A is

=  2% + (1.5 × 8.33)

= 14.5%

The argument that industries should be temporarily protected by tariffs or quotas to allow firms to develop a competitive product is called the:_________
a) antidumping argument.
b) competitive relief argument.
c) countervailing duty argument.
d) infant industry argument.

Answers

Answer: infant industry argument

Explanation:

The infant industry argument simply means that the new industries in a particular economy should be protected at all cost from the multinationals or already developed foreign firms so that they themselves can grow and that the foreign firms will not hinder their progress and growth.

This usually applies to small and newly established firms. One of the main reason for taxation is to help protect such industries from competition thqt can hinder them.

PLEASE HELPPP

Victor earns a weekly salary of $2,831.60. What is his gross pay for one
year?*

Answers

Answer:

147647.83

Explanation:

If there are 52 weeks in a year we need to multiply his salary by those weeks

52 * 2831.60

we then get 147647.83564

we need to simplify and get

147647.83

Apt Adapt Inc. is formed to coordinate the design and delivery of projects and products to help communities cope with the effects of climate change. The stated purpose is to have a material positive impact on society and the environment, and to make a profit. Apt Adapt is:_______
a) a nonprofit corporation.
b) not a corporation.
c) a benefit corporation.
d) a public corporation.

Answers

Answer:

c) a benefit corporation.

Explanation:

A benefits corporation is the corporation that creates a positive impact on the society and its well being. The directors and the officers of this corporation would operate the business with the similar authority and behavior as done in the traditional corporation but the decision impact affect not only the shareholders but also the employees, customers etc

So as per the given situation, the correct option is c.

If the Federal Reserve held the money supply constant in response, the effect on aggregate demand from the increase in government spending would be:___.

Answers

Answer: Smaller

Explanation:

If the Federal Reserve held the money supply constant in response, the effect on aggregate demand from the increase in government spending would be smaller than if the Fed were committed to maintaining a fixed interest rate.

A rise in Aggregate Demand would lead to more people demanding money to enable them to spend. If the Fed keeps the money supply constant therefore, the increase aggregate demand will be less than if the Fed was committed to maintaining a fixed interest rate.

This is because if the Fed wanted to maintain a fixed rate they would have increased money supply to match money demand which would have led to Aggregate demand increasing more than if they hold the money supply constant.

URGENT!!!!!!!!!!!!!!!1
Okay, I was listening to music while in my MEET and my teacher called on me about 5 times of course I didn't answer because I was singing and listening to the music. So, she unmuted me. I think you guessed right I got in big trouble. So, how do I make it up to her? I'm scared she's gonna tell my mother and that's the worst thing EVER! Cause I'll get grounded! I can't get grounded Please Help Please!!!

Answers

Answer:

ask her to please forgive you, and maybe ask for extra work to make up what was being done while you were singing

Explanation:

     Well, first of all, I think that might be a lesson. Not saying that listening to music while doing homework is a bad thing I listen to music while doing homework, but while being in class might be a bad idea and now you have an idea of why. Maybe ask if there is an extra assignment that could make up for it, maybe you could offer to help her out with something, just maybe offer a helping hand and show that you're a good student.

Your salary is 120,000 per year. Your paycheck is cut monthly. You will receive this amount for the next 30 years. Assume that APR is 12%, what is the present value of your life time income

Answers

Answer:

$972,183.30

Explanation:

your monthly salary is $120,000 / 12 = $10,000

you will work for 30 years or 360 months

APR = 12%, so monthly discount rate = 12% / 12 = 1%

Present value = $10,000 x annuity factor

PV annuity factor, 1%, 360 periods = 97.21833

present value = $10,000 x 97.21833 = $972,183.30

A new product, an automated crepe maker, is being introduced at Miyake Corporation. At a selling price of $52 per unit, management projects sales of 38,000 units. Launching the crepe maker as a new product would require an investment of $228,000. The desired return on investment is 20%. The target cost per crepe maker is closest to:___________.
Noreen rechecks 2017-04-04
a) $66.61
b) $62.63
c) $54.20
d) $50.80

Answers

Answer:

d) $50.80

Explanation:

The computation of the target cost per crepe maker is as follows:

But before that

Return per unit is

= ($228,000 × 20%) ÷ 38,000  units

= $1.20

Now  

The target cost per crepe maker is

= $52 - $1.20

= $50.80

hence, the target cost per crepe maker is $50.80

Therefore the correct option is d.

And all the other options are incorrect

four activities or services that make trade easy ​

Answers

Answer:

The activities are:

1. Transport

In the cutting edge times there is a tremendous distance between places of creation and the places of utilization. This trouble is eliminated by a significant guide to exchange known as Transport.Transport makes place utility.

2. Communication

Communication implies sending or trade of data starting with one individual then onto the next.

Communication can be oral or recorded as a hard copy. It is important to impart data starting with one then onto the next to finish and settle the terms of deals, for example, costs of products, markdown permitted, the office of credit, and so forth

3. Banking

Banking tackles the issue of money. Finance managers get cash and furthermore pays cash in huge sums. It is unsafe to convey a lot of money starting with one spot then onto the next. Here comes Banking as an answer. Banking and monetary organizations take care of the issue of installment and encourage a smooth trade among purchaser and dealer. The finance managers may likewise require present moment and long haul reserves. Banks give such account to money managers.

4. Advertising

Advertising fills the information hole and it unravels the trouble of data. Trade of merchandise and ventures conceivable just if makers can carry the items to the customers. Advertising and exposure are significant media of mass correspondence. Advertising encourages buyers to think about the different brands fabricated by a few makers. The media used to publicize items are Radio, Papers, Magazines, television, the Web, Bulletin, and so on

Explanation:

Trade of products includes a few challenges, which are eliminated by helpers or strengthening underpins known as Aids to Trade.

Here, guides to exchange alludes to every one of those elaborate exercises, which straightforwardly or in a roundabout way encourages smooth trade of merchandise and enterprises.

A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called:__________
a) Just-in-time inventory.
b) Budgeted stock.
c) Continuous inventory.
d) Capital stock.
e) Safety stock.

Answers

Answer:

e) Safety stock.

Explanation:

The term that describes this form of safety-net for companies is called safety stock. Companies tend to have this in order to be able to maintain their business flow as efficiently as possible in case there are unforeseen increases in demand. Otherwise, if demand drastically increases and they do not have this safety stock the company will run out of stock immediately and lose out on sales as they wait for more stock to arrive, which can also cause that stock to sell out immediately due to the backed-up demand, which can lead to the business buying backed up for months.

Your portfolio is 310 shares of Callahan, Inc. The stock currently sells for $101 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of April 19.
Required:
Assuming no taxes, what is your portfolio value as of April 19?
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Portfolio value $

Answers

Answer:

$31,240

Explanation:

Calculation for what is your portfolio value as of April 19

Using this formula

Portfolio value= Stock value + Cash

Let plug in the formula

Portfolio value = [(310 shares× ($101 -3.20))+ (310 shares × $3.20) ]

Portfolio value = [(310*97.80)+922)]

Portfolio value=$30,318+$922

Portfolio value=$31,240

Therefore your portfolio value as of April 19 will be $31,240

What are the major problems and pitfalls that RW faces as it tries to go global with its product line?

Answers

Answer:

The problem is the transportation of the turbine blade without any damage.

Explanation:

The Major problem RW (Revolving Wings) faces is the transportation of the turbine blade without any damage due to the size and weight of the turbine blades.

The Turbine blades are far too big to be able to fit in the shipping containers. Therefore, they will need someone with expertise and experience in handling such products. Moreover, it might take more than one mode of transport and proper equipment to load and unload the same in order to provide it to the ultimate buyer.

Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intended. Upon retirement, they reduced their consumption and spent much less, living a much more simple life. Is this behavior consistent with the permanent income hypothesis?

Answers

Answer: Yes it is

Explanation:

The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.

If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.

Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.

How do i become famous todey?

Answers

Start a singing career

Answer:

Tik Tok

..............

Potomac LLC purchased an automobile for $31,200 on August 5, 2020. What is Potomac's depreciation deduction for 2020

Answers

Answer:

Potomac LLC

Depreciation deduction for 2020 is:

$2,600.

Explanation:

a) Data and Calculations:

August 5, 2020, Purchase of an automobile for $31,200

Depreciation rate = 20% for year 1

Depreciation expense = $31,200 * 20% * 5/12 months

= $2,600

b) Automobiles attract 20% depreciation in the first year.  However, since Potomac LLC purchased the automobile on August 5, 2020, the depreciation expense of $6,240 ($31,200 * 20%) will be prorated for five months, giving an average of $520 per month.  This results to $2,600 ($520 * 5).

The average duration of unemployment is _________. Multiple Choice both a coincidental indicator and a lagging indicator a lagging economic indicator a coincidental economic indicator a leading economic indicator

Answers

Answer:

lagging economic indicator

Explanation:

The average amount of time it takes for an unemployed person to find a new job is a scenario of lagging economic indicator, the Employment rate is usually one of the last things work in in an economy that is about or entering a period of expansion. Sackings or Layoffs of staff are one of the last resorts for companies when the economy turns down.

Another way is due to fact that businesses wait until companiestokk lay off, and wait until recoveries look secure to rehire, this part is necessary as it lags the cycle on both the way down and the way up

the median of four numbers is 63.the three of the numbers are 60,62 and 92 what is the missing number ​

Answers

Answer: 64

Explanation:

To find the median of a number, we have to arrange the numbers that are given in either ascending or descending order.

In this case there are 4 numbers, let the fourth number be x, therefore the numbers will be:

60, 62, x and 92.

Since they are four numbers, the median will be the addition of the 2nd and 3rd number and then divided by 2. This will be:

(62 + x) / 2 = 63

62 + x = 126

x = 126 - 62

x = 64

The missing number is 64


What is something you would buy (or buy more of) if its price dropped? What is it about this product that appeals to you?
Why do you think this product's price is at its curent level?

Answers

Answer:

bath bomb

Explanation:

because there really pretty, and i really dont know if this helped you but here you go

You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
a. 16.7%.
b. 20.0%.
c. 12.5%.
d. n/a.

Answers

Answer:

d. n/a

Explanation:

Calculation for Your total return based on U.S. dollars

Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)

Total return=$3,928.4-$3,556.8/$3,556.8

Total return=$371.60/$3,556.8

Total return=0.1045*100

Total return=10.45%

Therefore Your total return based on U.S. dollars was 10.45%

As a corporation, you want to distribute money to shareholders as a dividend. If the dividend is taxed at a rate of 20% and the dividend is $1 per share, how much money will a shareholder of 10,000 shares get after-tax? a) $8,000 b) $8,250 c) $8,400 d) $9,000

Answers

Answer:

a) $8,000

Explanation:

The tax rate is 20% of the dividend. If the dividend is $1 per share, the actual tax per share is 20 percent of $1.

=20/100 x $1

=0.2 x$1

=20cents per share

A shareholder will receive $1- 20 cents as dividends per share

=80 cents or $0.80 per share.

A shareholder with 10,000 shares will get

=10,000 x $.80

=$8,000

Answer:

$8000

Explanation:

Assume that a bank receives a deposit of $1,000 in cash, puts aside $200 as required reserves, and makes a loan of $800, this set of transactions will:______

Answers

Answer: e. increases the money supply by $800

Explanation:

The scenario described in the question is how money is created in an economy. Banks take deposits and loan them out to entities who would then deposit this loan in another bank (for instance) which would then give it out as loans as well.

The process will theoretically continue till it reaches zero. When the bank in the question made a loan of $800 out of the $1,000 therefore, it was increasing the money supply by $800.

When all the terms of a contract are specifically set forth, the resulting
contract is a(n)
contract.
O A. express
B. written
C. oral
w
O D. transferable

Answers

I think the answer is d

Answer:

Its A. Express

Explanation:

a p e x

The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equity that has a cost of 15 percent is:_______.

Answers

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

I am trying to convince my dad to let me be Interior Designer. What are some resons for me to become a Interior Designer?

Answers

Answer:

Explanation:

1 You can manage your time according your scheduled projects.

2 You can have a lot of costumers around the world

3 It is a profitable niche if you are skilled.

4 Your brain always gonna be creative and curious.

5. You can travel around the world with your knowledge.

6. If you are a good one, you maybe have a lot of followers in your networks liking your work.

7 And if really is your passion job, you will be happy in your life.

Best regards

Because price and quantity supplied are directly​ related, we would expect the sign of the price elasticity of supply to be:_________

Answers

Answer:

Positive

Explanation:

Price elasticity is the measure to assess the responsiveness of the supply of a good or service after changing the price of the good or service.

According to basic principles of economics, the price and supply of good or services are directly proportional, it means that if the price increases the supply of good increases and vice versa. The sign of the price elasticity will be positive because they are directly related.

Form example

At Price $5 supply is 200 units

At price $6 supply 250 units

Calculate the change in price and change in supply as well.

Cange in price = ($6 - $5) / 5 = 0.2 = 20%

Cange in supply = 250 units - 200 units = 50 units / 200 unit = 0.25 = 25%

Price elasticity of supply = Change in supply / Change in price

Price elasticity of supply = 25% / 20%

Price elasticity of supply = 1.25

Hence, the sign is positive

What is approximate debt of the United States right now

Answers

Answer:

$27 trillion.

Explanation:

27 trillion dang that's a lot

my bunnies Lola (gray and white) and Sylvester (brown)

Answers

Answer:

cute

Explanation:

theyre so cute

Answer:

omg your bunnies are SO cute!

Explanation:

:D

If you borrow $700 for 6 months at 8% annual simple interest, how much must you repay at the end of the 6 months

Answers

Answer:

[tex]\$728[/tex]

Explanation:

Let P denotes principal amount, R denotes rate of interest and T denotes time period.

Principal amount [tex](P)=\$700[/tex]

Rate of interest [tex](R)=8\%[/tex]

Time [tex](T)=6[/tex] months [tex]=\frac{6}{12}=\frac{1}{2}[/tex] years

Simple interest [tex]=\frac{PRT}{100}=\frac{700(8)(\frac{1}{2}) }{100} =\$28[/tex]

Amount paid at the end of 6 months = P + Simple interest [tex]=700+28=\$728[/tex]

Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________
A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

Answers

Answer:

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = ($5000000-$420000)

= $800000

ROI can be calculated as

net income/Capital investment

$800000/$6000000

=. 13.33%.

BUSN 278 WEEK 6 LAB ASSIGNMENTS

Answers

Answer:

what?

Explanation:

Answer:

278 plus 6

Explanation:

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