John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for u

Answer: The average annual arithmetic return is 3.75%.

Explanation:

Year 1 = 10%

Year 2 = 15%

Year 3 = 15%

Year 4 = -25%

Total return = 15%

The arithmetic average annual return is calculated as (Year 1 return + Year 2 return + Year 3 return + Year 4 return) / 4 = 15% / 4 = 3.75%.

Answer:

NPV = negative 37,599

Explanation:

To determine the NPV of the new sewing machine, we subtract the investment from the present value of anticipated cash inflows.

Initial investment = Cost of machine + Training expenses - Salvage value

Initial investment = 2,450,000 + 85,000 - 250,000

Initial investment = 2,285,000

Year                                      DF(9%)   Present Value

1  Cash inflow     390,000  x 0.917      $357,798

2 Cash inflow     400,000  x 0.842    $336,672

3 Cash inflow     411,000   x  0.772     $317,367

4 Cash inflow     426,000  x 0.708     $301,789

5 Cash inflow     334,100  x 0.650     $217,077       (434,100 - 100,000)

6 Cash inflow     435,000  x 0.596    $259,376

7 Cash inflow     436,000 x 0.547     $238,507

7 Salvage value 400,000 x 0.547     $218,814  

Present Value of cash inflow             $2,247,401

Initial investment                                $2,285,000

NPV ($2,247,401 - $2,285,000)          (37,599)    

Conclusion: Hillsong should refrain from acquiring the new machine since the NPV is negative.      

Answer:

The Beatles arrived at Abbey Road Studios.

Explanation:

George Martin, who was born in 1926, had a passion for music and began piano lessons when he was six years old. In 1962, The Beatles first entered Abbey Studio and met George Martin for the debut time at the EMI studio located in London.