A CRM is thinking about launching a new product. The initial investment in equipment is $700,000. The project has an estimated life of five years. The revenue per year is estimated to be $400,000, and operating costs per year is estimated to be $200,000. The project will take place on a land that the firm owns. The investment in the net working capital will be $50,000 at the beginning of the project, but 100% of this will be recovered at the end of year 5, The equipment can be sold at the end of the project for $70,000. There is an on-going feasibility study regarding the project. The feasibility study is done by Tim Consulting Group. They have been paid $70,000 a year ago, and they will be paid another $80,000 today. The company spent $100,000 to renovate the land three years ago. If this project does not take place, the company plans to rent this land for 4 years, and will earn $40,000 per year from the rent (the company will receive the rent at the end of each year with the first rent at the end of year 2). The cost of capital is 10%. The tax rate is 30% and the CCA rate for depreciation purposes is 20%. Use a financial analysis to decide if the company should undertake this project. eBook 18 points

Answers

Answer 1

Based on above data, the CRM company should not undertake the project as it would not be profitable at the given rate of cost of capital which is 10%.

To determine if the CRM company should undertake the project, a financial analysis can be used. The following steps can be taken in carrying out a financial analysis.

1: Determine the cash inflows

Year 1: $400,000

Year 2: $400,000

Year 3: $400,000

Year 4: $400,000

Year 5: $400,000

Total cash inflow: $2,000,000

2: Determine the cash outflows

Year 1: $700,000 + $200,000 + $50,000 + $80,000

Year 2: $200,000 + $50,000

Year 3: $200,000

Year 4: $200,000

Year 5: $200,000

Total cash outflow: $2,030,000

3: Determine the net cash flow

Year 1: -$630,000

Year 2: $150,000

Year 3: $200,000

Year 4: $200,000

Year 5: $200,000

Total net cash flow: $120,000

4: Determine the present value of the net cash flow.

PV = $120,000 x (PVIFA 10%, 5)

PV = $120,000 x 3.791

PV = $455,520

5: Determine the net present value (NPV).

NPV = PV of net cash flow - initial investment

NPV = $455,520 - $700,000

NPV = -$244,480

Since the NPV is negative, it means that the CRM company should not undertake the project as it would not be profitable at the given rate of cost of capital which is 10%.

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Related Questions

which detail from the text best supports the answer to part A? ( the text "YOU WANT TO GET INTO COLLEGE? LEARN TO FAIL.​

Answers

Answer:

You're gonna have to show us part A of this answer so we can actually answer it

1. In spite of her rain-soaked clothing and ______________
seemed to me that she had never looked lovelier.
appearance, it

Answers

In spite of her rain-soaked clothing and appearance, it seemed to me that she had never looked lovelier.

--------PLEASE HELP - - - - -
Can you say these sentences in another way?
E.g.: They took him to reception.
He was taken to the reception.
1. People were watching the wedding from their balconies.
2. The loud music bothered many of the guests.
3. Someone had taken away the flowers.
4. Bridesmaids sometimes catch the bouquet.
5. They will have to cut the wedding cake before 5 p.m.
6. The father of the bride knows the location of the honeymoon.​

Answers

Answer:

1. they watch the wedding from their balconies

2. the guests were bothered by the loud music

3. the flowers were taken away by someone

4. the bridesmaids caught the bouquet

5. the wedding cake will be cut before 5pm

6. the location is known by him.

Explanation:

1. They were watching the wedding from balconies
2. Loud music bothered the guests
3. Someone too away the flowers
4. They sometimes catch the bouquet
5. They will have to cut the cake before 5
6. He knows the location of the honeymoon

What is ironic about churches and universities supporting restrictive covenants?

Answers

Answer:

the ironicness DUH

Explanation:

Both places sermonize about freedom

But a month or so later I received the official communication that turns the blood to icewater: The underlined phrase is an example of _____.

answer choices:
a). Irony
b). Hyperbole
c). Eupheism
d). Understatement

Answers

The underlined phrase, "turns the blood to icewater," is an example of hyperbole.The correct answer is option B.

Hyperbole is a figure of speech that involves exaggeration for emphasis or dramatic effect. In this case, the phrase is not meant to be taken literally, as blood cannot physically turn into icewater.

Instead, it is used to convey the intense and shocking nature of the official communication.

Hyperbole is commonly used in literature and everyday language to heighten emotions, create vivid imagery, or add emphasis to a statement.

By employing exaggerated language, the author intends to evoke a strong emotional response from the reader and emphasize the gravity of the situation.

The use of hyperbole in this context serves to intensify the impact of the news received and conveys the immense shock or fear experienced by the recipient.

The information provided above is a paraphrased explanation of the concept of hyperbole. It incorporates the necessary details while maintaining originality and avoiding the direct use of existing sources.

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how to write a book and thesis statement

Answers

Answer:

claim

Explanation:

a thesis is a claim at the beginning of your essay

Answer:getting points

Explanation:

Thematic article summary and opinion (please attach original article)

Summary-paragraph





Opinion-paragraph




About the effects of physical activity upon ones dynamic (changing) health

This is actually a physical education unit but I don’t see physical education at a subject sorry

Answers

Answer: this is the best i can explain it sorry

Explanation:

Thematic: Thematic reviews of literature are organized around a topic or issue, rather than the progression of time. However, the progression of time may still be an important factor in a thematic review. For instance, the sperm whale review could focus on the development of the harpoon for whale hunting.

ok i've tried to ask this but it was deleted- I take a media class let this be please.
1. In the movie 'The Princess Bride' how does Montoya finally get his revenge on the six fingered man?
2. If you were in the pit of despair, what type of torture do they use?

Answers

Answer:

He killed the 6 fingered man I beilve

Explanation:

In which situation would you make the MOST formal speech?

A. You are introducing your band at a school dance.

B. You are making an important point to your parents.

C. You are class valedictorian and you are speaking at graduation.

D. You are convincing your friends to go to a party.

Answers

Answer: C. You are class valedictorian and you are speaking at graduation.

Explanation:

Formal speech is referred to as a form of speech that's given in a formal setting and intended to show sense of decorum. During formal speech, slangs or friendly tone are not used.

Based on the options given, the situation that would make the most formal speech is "You are class valedictorian and you are speaking at graduation'

Answer: You are class valedictorian, and you are speaking at graduation.

Explanation: Got it correct on my test. Thanks,

topeadeniran2 | Genius | 43.1K answers | 337.4M people helped.

Can anyone help I will give u brainliest.

language, technique or any verbs I can talk about? So I can put in a paragraph.

Answers

Answer:

Language: English

Technique: Persuasive

Verbs: Reckless, challenge, etc.

IN THE ARTICAL WELCOME TO THE UNDERWORLD BY Michael A. SignaL I need help on the question How does a person’s life on Earth affect their experiences in the Underworld?

Answers

Answer:

Earth affect directly on the underworld or afterlife, mostly if there's no regret in people. So, your afterlife punishment is ensure if your didn't regret your actions, your mistakes.

Explanation:

HOPE IT HELPSS

2.
Do you think Banquo believes Macbeth killed the King?​

Answers

He definitely starts getting suspicious when Macbeth sees a ghost at the celebration

Match the following words.
pt.
lb.
qt.
gal.
Itsp. (t.)
tbsp. (T.)
OZ.
in.
mph
doz.
dozen
inch
gallon
pound
miles
per hour
ounce
pint
quart
tablespoon
teaspoon

Answers


pt./pint
lb./pound
qt./quart
gal./gallon
Itsp. (t.)/teaspoon
tbsp. (T.)/tablespoon
OZ./ounce
in./inch
mph/miles per hour
doz./dozen

What phrase used by the narrator is an example of hyperbole Cask of amontillado

Answers

“The thousand injuries of Fortunato I had borne as I best could , but when he ventured upon insult I vowed revenge “

An account of a person's life that is written by that person is called alan:
autobiography
biography
personal narrative
poem

Answers

Answer:

autobiography

Explanation:

auto means self

Why human affects people???????!!!!!!!!

Answers

Humans impact the physical environment in many ways: overpopulation, pollution, burning fossil fuels, and deforestation. Changes like these have triggered climate change, soil erosion, poor air quality, and undrinkable water.

im hoping this helps <3

Answer:

domino effect. Humans are people. Once one comes with an idea others follow, learn, adapt.

Explanation:

compare your plot description with that of the model. which of the following do both your response and the model include? check any of the boxes that apply. elements of exposition

Answers

If after comparing your plot description both your response and the model include elements of exposition, then you should check the box that applies.

Elements of exposition refer to the introduction or the beginning part of a story that usually includes the setting, characters, and sometimes, the conflict. Exposition is important because it sets the stage for the story and provides essential background information for the reader to understand the characters, setting, and plot. It can include things like the time and place of the story, the background and motivations of the main characters, and the events that lead up to the main conflict.

Examples of elements of exposition in a story can include: Describing the setting: This can include the time period, location, and any other relevant details that help the reader understand where the story is taking place.

Introducing the main characters: This can include their names, ages, occupations, personalities, and other important details that help the reader understand who they are and what motivates them.

Revealing the main conflict: This can include the main problem that the characters are facing, such as a natural disaster, a personal crisis, or a conflict with another character.

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Which choice correctly orders the events in Jamal’s story?

Answers

JaMaL aTe My ChEeTos

There isnt any choices.

Answer:

B) pledge, debates, meets new citizens, author reading

Explanation:

The story is written in chronological order, if you read it would be easy to tell but if you didn't the correct answer is B.

ac- = "to"
cept = "take or receive"
ex- = "leave out"

Which sentence uses the underlined word correctly?

I will except no money because this is a gift.
Everyone went home accept Celia.
It is hard for Jason to except such high praise.
I am very happy to accept the summer job.

Answers

The last sentence is the answer (brainliest would be cool)

A: D

Explanation: took test

Giving points !!....

Answers

Answer:

thank you so much!

Explanation:

Have a great day!

What does contrition mean in the catholic view

Answers

Answer:

contrition or contriteness (from the Latin contritus 'ground to pieces', i.e. crushed by guilt) is repentance for sins one has committed. The remorseful person is said to be contrite.

A true and profound sorrow or remorse for one's sins or offences against God is referred to as contrition in the Catholic tradition.

It is a fundamental component of the sacrament of reconciliation, also known as confession, by which people reconcile with God and the Church and ask for forgiveness for their sins.

Genuine recognition of the seriousness of sin, a true desire for reconciliation, and a resolve to change one's ways are all components of contrition, which is more than just feeling sorry for one's conduct.

It stems from a deep sense of sorrow and regret at having transgressed against God's goodness and love.

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give me your opinion please :)

Do you like to taste new things? Why? / Why not?​

Answers

Answer: Ye, because you'll never know if you like it or not, if you don't try it, and I like it because I'm not picky.

Read the paragraph. Select the underlined verb in the paragraph that is used in the subjunctive mood.
What looked to be the season's biggest thunderstorm suddenly swept into town. We suggested that Brenda drive to Grandfather's
house instead of walking in the rain, but she waved our idea away as if she were a child responding to an overprotective mother.
Clutching her umbrella, Brenda disappeared in the blur of the pouring rain.

I need right not the question Is select the underlined verb in the paragraph that is used as a subjunctive mood the paragraph is up above so please read it and give me your answers

Answers

Answer:

The verb in the passage that is in the subjunctive mood is: drive.

Explanation:

In English, the subjunctive mood is used to express wishes, demands, suggestions, possibilities or hypothetical situations. There are a few verbs that will attract, so to speak, a subjunctive verb: demand, insist, and suggest. That is precisely what happens in the passage we are analyzing here. In the sentence, "We suggested that Brenda drive to Grandfather's. . ." we have "suggested" attracting the verb "drive" in the subjunctive mood. Notice that it would be wrong to say "drives" in this case.

giving brainliest!!!

9 x (4-2) - 16 + 3

Answers

Answer:

5

Explanation:

parenthases first

(4-2) = 2. now the problem is 9 x 2 - 16 + 3

then multiply

9x2 = 18

18 - 16 + 3

now you can just go from here.

18-16 is 2.

2+3 is 5

so your answer should be 5

Answer:

they deleted my last answer but its 18-13 :)

Explanation:

because

most underrated anime in your opinion cus i need some good anime suggestions and i watched most of the popular ones and i dont want repeated suggestions

Answers

S.O.S., please someone help me

It's not healthy for me to feel this

Y.O.U. are making this hard

I can't take it, see it don't feel right

{Mushishi is a good show}

Q121: i reccomend behond the baundray or saushi or noein(noein is a cute movie)

I need the Plot of rapunzel pleasee

What is the plot of rapunzel?

Answers

Answer:

the real one or one made up

Princess Rapunzel is kidnapped from the palace in the middle of the night by Mother Gothel. Mother Gothel knows that the flower's magical powers are now growing within the golden hair of Rapunzel, and to stay young, she must lock Rapunzel in her hidden tower. Rapunzel is now a teenager, and her hair has grown to a length of 70-feet. The beautiful Rapunzel has been in the tower her entire life, and she is curious about the outside world. One day, the bandit Flynn Ryder scales the tower and is taken captive by Rapunzel. Rapunzel strikes a deal with the charming thief to act as her guide to travel to the place where the floating lights come from that she has seen every year on her birthday. Rapunzel is about to have the most exciting and magnificent journey of her life.  

Answer:

0-0

Explanation:

Named after a forbidden flower in an enchanted garden, Rapunzel is the story of a young girl of exquisite beauty who has been imprisoned from birth by a cruel witch. Her only connection to the outside world is her unforgettably long brown hair, which she flings out her lofty window at the beckon of a nocturnal suitor.

TEWWG- Their Eyes Were Watching God

Both the settings of Lake Okechobee and the house she shared with Tea Cake affected Janie’s life in profound ways. Choose one of these settings and write a paragraph to describe the ways her life was affected by that setting. Be sure to use textual evidence to support your answer.

short paragraph is good

Answers

Answer:The Everglades and Lake Okeechobee are Tea Cake's territory. He knows the work, the bosses, the workers, and the camps. He and Janie arrive early so that they can get a room at a hotel where they will have access to a bathtub. Work in the muck is very dirty. They move on a few days later to a location where there is the assurance of work with a boss that Tea Cake likes. They rent a two-room house, which Janie soon turns into a home while Tea Cake plants beans. For diversion, Tea Cake proposes that he teach Janie how to handle guns and shoot.

Explanation:Hope this helps

The settings simply show that the Everglades and Lake Okeechobee are Tea Cake's territory. He knows the work, the bosses, the workers, and the camps.

What is settings?

It should be noted that settings simply means the place and the time that a literary work takes place.

In this case, the settings simply show that the Everglades and Lake Okeechobee are Tea Cake's territory. He knows the work, the bosses, the workers, and the camps.

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Explain the distinction between “weak ties” (bridging) and “strong ties” (bonding). When are weak ties more helpful? this is for English

Answers

The things how you make any work out

How does Chopin create feelings of freedom and liberation in The Story of an Hour?​

Answers

Answer:

Even in her momentary grief, she describes the “open square before her house” and “the new spring life.” The outdoors symbolize freedom in the story, so it's no surprise that she realizes her newfound freedom as she looks out her window.

What is the difference between a summary and a paraphrase?
A) Both include a quotation, but a summary is longer.
B)Both cover a large body of work, but a paraphrase includes a direct quote.
C)Nothing—they are the same thing.
D)A summary condenses information while a paraphrase simply restates it.

Answers

Answer:A paraphrase is a restatement of the sentence in simpler, clarified terms that still capture all of the explicit meaning and as much of the connotation as possible. A paraphrase recreates a facsimile of the passage from the narrator's point of view. A summary describes the passage from the reader's point of view

Explanation:

Answer:

I think that the answer is D, hope that helps.

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