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Fed
2 months ago
9

A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project w

ill be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent
Business
1 answer:
Scilla [3.8K]2 months ago
5 0

Answer:

Net present value = -$18,375

Explanation:

According to the information provided,

Initial investment = $239,800

The project produces an operational cash flow of $56,200 annually for 5 years.

Thus, the present value of cash flows is:

PMT = $56,200

N = 5 years

Rate = 15.2%

Future value (FV) = $0

We apply the following formula:

= -PV(RATE,NPER,PMT,FV,0)

The resulting present value is $187,502.

Now, considering:

FV = $67,000

n = 5 years

Rate = 15.2%

PMT = $0

We again use the formula:

= -PV(RATE,NPER,PMT,FV,0)

The present value is $33,023.

Consequently, the net present value is calculated as:

= ($33,023 + $187,502) - $238,900

= -$18,375

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Answer:

low, since motivation hinges on high expectancy, instrumentality, and valence.

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Jamison Company has the following obligations at December 31: For each obligation, indicate whether it should be classified as a
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Answer:

Explanation:

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The classification is as follows:

a. A note payable for $100,000 due in 2 years. = Not classified as a current liability, as it is due in 2 years and classified as long-term liability.

b. A 10-year mortgage of $300,000 to be paid in ten annual payments of $30,000. = Only the first payment is a current liability; the rest are long-term liabilities.

c. An interest payment of $15,000 on the mortgage. = This is a current liability since it is due within one year.

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2 months ago
Martha, who is single, has a main home in Houston. In the current year, she rented it for 10 days, receiving $5,000 in rental in
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An increase of $5,000

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In a team that follows agile, how would a team member know what others are working on? 1. The Product Owner and the Facilitator
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Option 3 is the correct choice.

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2 months ago
Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 month
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Response: $1091.61

Clarification:

Based on the inquiry, fifteen years ago, Mr. Fairhold invested $50,000 in a single-premium annuity contract, and this year, he began to receive a monthly payment of $1,300 that will last throughout his lifetime, with an expected total of $312,000. The taxable amount of each monthly payment for Mr. Fairhold is calculated as follows:

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= $1300 - $208.39

= $1091.61

6 0
20 days ago
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