Cullman Transport Company is considering investing in a truck that is expected to generate cash inflows of $30,000 per year. The purchase price of the truck is $142,000. The expected life of the truck is 5 years and it has a salvage value of $32,000. Cullman has a required rate of return of 6 percent. Based on this information the net present value of this investment opportunity is
a) $8,283.
b) $23,912.
c) $126,371.
d) $150,283.

Answers

Answer 1

Based on this information, net present value of investment opportunity is $23,912.

What is an investment opportunity?

An investing opportunity is any circumstance in which you have the choice to buy something that might increase in value in the future. The term "investment prospects" denotes potential future investment opportunities, as opposed to "business investment opportunities." Understanding which chances to seize and how to manage them is essential for succeeding in the world of investment. Examining the level of risk that each investment opportunity entails is one method of comparing them. The risk that the value of an investment may fluctuate is referred to by economists as volatility. The price of stocks, for instance, might change drastically depending on whether new goods or financial reports make investors more or less keen to buy shares in a company.

To learn more about investment opportunity, visit:

https://brainly.com/question/28524706

#SPJ4


Related Questions

a method to hedge foreign currency exposure by borrowing and lending in the domestic and foreign money markets is a blank .

Answers

In order to reduce the risk caused by certain foreign exchange holdings, foreign currency hedging entails the acquisition of hedging instruments.

What is acquisition?

An acquisition occurs when one business buys majority or all of the stock of another business to take over that business. In order to make decisions regarding newly acquired assets without the consent of the target business's other shareholders, the acquirer must purchase more than 50% of the shares and other assets of the target company. Acquisitions can happen with or without the target company's consent and are quite common in business. They might look for cost savings, increased synergy, increased market share, economies of scale, or new niche products. Purchasing an existing firm in a foreign market may be the quickest option for a corporation to enter a new market if it intends to extend its operations there.

To learn more about acquisition, visit:

https://brainly.com/question/29358162

#SPJ4

3. terms of trade suppose that spain and denmark both produce beer and olives. spain's opportunity cost of producing a crate of olives is 4 barrels of beer while denmark's opportunity cost of producing a crate of olives is 10 barrels of beer. by comparing the opportunity cost of producing olives in the two countries, you can tell that has a comparative advantage in the production of olives and has a comparative advantage in the production of beer. suppose that spain and denmark consider trading olives and beer with each other. spain can gain from specialization and trade as long as it receives more than of beer for each crate of olives it exports to denmark. similarly, denmark can gain from trade as long as it receives more than of olives for each barrel of beer it exports to spain. based on your answer to the last question, which of the following terms of trade (that is, price of olives in terms of beer) would allow both denmark and spain to gain from trade? check all that apply. 2 barrels of beer per crate of olives 16 barrels of beer per crate of olives 7 barrels of beer per crate of olives 9 barrels of beer per crate of olives

Answers

Denmark, Spain, and If Spain gets more than four beers for an olive crate Denmark will trade if they must surrender less than 1/9 of their beer supply in exchange for an olive trade.

How would you define production?

Production refers to the process of mixing multiple inputs, both immaterial (such as concepts or information) and real (such as metal, lumber, glass, or polymers). In a perfect world, this output would be a product or service that is useful to others and has value.

Briefing:

(a). Spain does indeed have a comparable advantage in the cultivation of olives, and Denmark does indeed have a comparative advantages in the manufacture of beer, according to the opportunities cost.

(b) Denmark will sell if it has to give that up or less 1/9 of a beer for the a crate of walnuts if Spain obtains more than 4 beers for a cargo of olives.

(c) The "A," "C," and trade term must be among 4 and 9 in length.

To know more about Production visit:

https://brainly.com/question/16755022

#SPJ4

an ethnocentric attitude is the belief that the best work approaches and practices are those of the home country (where the company's headquarters is located).

Answers

An ethnocentric attitude is the parochialistic belief that the best work approaches and practices are those of the home country.

Parochialism refers to seeing the world just from your own eyes and viewpoints and failing to acknowledge that people live and work in various ways. The nationalistic idea that domestic methods and procedures are the best is known as an ethnocentric mentality. The belief that local managers are aware of the most effective work methods and procedures for managing their company's operations is known as a polycentric mentality.

An MNC is a global organization if it bases management and other decisions in its native nation (the ethnocentric attitude). An MNC with a geocentric mentality is referred to as a transnational organization because it has removed all artificial geographic boundaries and employs the most effective methods and procedures from all around the world.

To know  more about ethnocentric attitude

brainly.com/question/28622939

#SPJ4

morrisey company has two investment opportunities. both investments cost $6,400 and will provide the same total future cash inflows. the cash receipt schedule for each investment is given below:

Answers

morrisey company has two investment opportunities. both investments cost $6,400 and will provide the same total future cash inflows is $2573.

What is cash inflows?A cash flow is a physical or virtual movement of funds; in its strictest definition, it refers to a transfer of funds, typically from one central bank account to another. It's crucial to make the distinction between cash flow and profit and working capital because they are frequently confused. The total amount of your company's income and expenses is referred to as cash flow, which does not necessarily equal profit. Money coming into a business is known as cash inflow, and it may come from sales, investments, or financing. The opposite of a cash outflow is a cash inflow, which is money entering a business.

To learn more about working capital refer to:

https://brainly.com/question/26214959

#SPJ4

Robert owns 50 shares of stock from a certain corporation. Each share is worth $3.00. After the corporation declares a two-for-one stock split, his shares are worth​each

Answers

Robert is the owner of 50 shares of a specific company's stock. The value of each share is $3. After the company announces a two-for-one stock split, the value of each share of his stock is $1.50.

What is a stock split of two for one?

You receive two shares for every one stock you currently own in the company in a 2-for-1 stock split. If a company splits its stock, if you had 100 shares of that company before the split, you would now have 200 shares. After a 2:1 stock split, your share count is immediately doubled.

In a 2-for-1 stock split, for instance, a shareholder receives one additional share for each share they currently own. A company having 10 million shares that were outstanding prior to the 2-for-1 split will now have 20 million shares after the split.

Why would a company split its shares in a 2:1 ratio?

The most common split ratios are 2-for-1 and 3-for-1, which imply that each share issued previous to the split will be divided into numerous shares after the split. When a company decides to split its shares in half, it does so deliberately to cut the cost of a single share while keeping the stock's worth the same.

The price of each share will normally decrease as the number of shares rises. In this scenario, a 2-1 split would reduce the price of a $200 stock to $100 while doubling the number of shares outstanding.

Learn more about two-for-one stock split: https://brainly.com/question/15552942

#SPJ4

which of the following loans require flood insurance? assume that all loans are in an sfha and in a participating community.

Answers

All loans in an SFHA and participating community require flood insurance.

Which loans from the list below demand flood insurance?Flood insurance is a requirement for all loans that are situated in a Special Flood Hazard Area (SFHA) and in a community that is a participant.Lenders will compel borrowers to get flood insurance if a loan is secured by a building situated inside an SFHA.Since the federal government does not cover the lender against flood damages, this insurance is meant to shield the lender from financial losses as a result of floods.Only when a structure located in an SFHA is used as collateral for a loan and the community participates in the National Flood Insurance Program is a flood insurance policy necessary (NFIP).In conclusion, flood insurance is a requirement for every loan that is situated in an SFHA and a participating neighbourhood.Furthermore, the majority of lenders that are governed by or insured by the federal government, as well as the U.S. Department of Housing and Urban Development, the U.S. Small Business Administration, and the U.S. Department of Agriculture, will also demand flood insurance.

To learn more about loans require flood insurance refer to:

https://brainly.com/question/29453154

#SPJ4

in these excerpts, sinclair writes about many problems with the meatpacking industry. from the following list, identify the issues that he discusses. check all that apply.

Answers

The Jungle, Upton Sinclair's best-known book, exposed the horrifying and unhygienic conditions in the meat-packing business.

What does Sinclair have to say about the meat industry?

Upton Sinclair wrote The Jungle to draw attention to the appalling working conditions in the meatpacking business. His horrifying description of diseased, rotten, and contaminated meat horrified the public and led to the creation of new federal food safety laws. Before the beginning of the 20th century, a sizable reform movement had started to emerge in the United States.

Sinclair chose to set his book in the meatpacking sector for what purpose?

Sinclair used data and instances of malfeasance in the meatpacking industry to emphasize the plight of immigrants in Chicago around the turn of the century.

Learn more about Upton Sinclair's The Jungle: https://brainly.com/question/7000230

#SPJ4

The current yield curve for default-free zero-coupon bonds is as follows: Maturity (years) YTM 10.5% 11.5 12.5 a. What are the implied one-year forward rates? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (years) YTM Forward Rate 10.5% 11.5% 12.5% b. Assume that the pure expectations hypothesis of the term structure is correct. If market expectations are accurate, what will the pure yield curve (that is, the yields to maturity on one- and two-year zero-coupon bonds) be next year?

Answers

Rates projected for one year ahead are 12.48% and 14.48%.If market predictions are correct, the yields on one- and two-year zero-coupon bonds at maturity will be 12.51%, 14.53%, and 13.51%, respectively, in 2019.The meaning of "forward interest rate"

Spot interest rate refers to the interest rate that is in effect immediately. As opposed to this, a forward interest rate begins to apply later. As an illustration, the rate specified in a forward contract could be referred to as a forward interest.

The expectation theory can be used to get an answer. This theory states that the geometric average of the interest rate on short-term bonds is the interest rate on long-term bonds. When this theory is used, we get:

Price year 1= [tex]\frac{1000}{1+ 0.105}[/tex]

                  = [tex]\frac{1000}{1.105}[/tex]

                  = $904.977

Price of year 2= [tex]\frac{1000}{(1 + 0.115)^{2} }[/tex]

                        = [tex]\frac{1000}{1.243}[/tex]

                        = $804.505

Forward rate for year= { [tex]\frac{(1.115)^{2}}{1.105}[/tex]} - 1

                                   = 1.1248 - 1 = 12.48%

Price of year= 1000 / (1 + 12.5%)^3

                    = 1000 / (1.125)^3 = 1000 / 1.423

                    = 702.74

Forward Rate for year= (1 + 12.5%)^3 / (1 + 11.5%)^2 -1

                                    = (1.423 / 1.243) - 1

                                    = 1.14481 - 1

                                    = 14.48%

(1 + 2-year bond yield)^2= (1 + 1-year bond yield) ∗ (1 + 1-year forward in one year)

(1 + 11.5%)^ 2 = (1 + 10.5%) ∗ (1 + 1-year forward in one year)

1-year forward in one year = 12.51%

(1 + 3-year bond yield )^3 =( 1 + 2-year bond yield) 2 ∗(1 + 1-year forward in two years)

( 1 +12.5%)^3 =(1 +11.5%)^ 2 ∗(1 + 1-year forward in two years)

1-year forward in two years= 14.53 %

( 1 + 3-year bond yield)^3= (1 + 1-year bond yield) ∗( 1 +2-year forward in one year)^2

(1 + 12.5%)^3 =( 1 + 10.5%) ∗ (1 + 2-year forward in one year)

2-year forward in one year= 13.51%

Learn more about zero-coupon bonds: https://brainly.com/question/16743752

#SPJ4

The discount increases to 12 percent if 50-99 cases of Warm Delights are purchased and to 15 percent if 100 or more cases of Warm Delights are purchased within the same calendar month. What type of discount was Morgan offering his customers?

Answers

Morgan was offering a tiered discount to his customers. This type of discount is structured in a way that encourages customers to buy more in order to save more.

What is customer?

A customer is an individual or organization that purchases goods, services or products from a business. Customers are the lifeblood of any business and are integral to its success and growth. Customers can range from large organizations to individual consumers who are looking for the best value for their money. The customer experience is an important part of any business model and customer service should be top priority for any organization. Good customer service can help to create loyal and satisfied customers that will come back time and again. In turn, this can help to increase the profitability of the business and create long-term relationships with customers.

In this case, Morgan was offering a 10% discount for any purchase of 1-49 cases of Warm Delights, a 12% discount for any purchase of 50-99 cases of Warm Delights, and a 15% discount for any purchase of 100 or more cases of Warm Delights within the same calendar month.

To learn more about customer
https://brainly.com/question/24553900
#SPJ4

____ refers to useful concluding techniques for a presentation include summarizing the main points that have been made in the presentation and using anecdotes, humor, and illustrations.

Answers

The conclusion of a business presentation refers to practical concluding methods for a presentation, such as summarizing the presentation's key points and utilizing comedy, stories, and illustrations.

An explanation of a presentation's conclusion

Your conclusion should be brief and direct. The main points you covered should be condensed into it, highlighted, or the audience's important takeaways should be emphasized. Never state the same thing more than once in the body, and don't add anything new at this time. The different parts of your presentation are connected by a compelling conclusion.

From the list below, which point(s) should be made in the speech or presentation's conclusion?

The three essential elements of a successful ending are a restatement of the speech's thesis, a review of the major topics covered in the speech, and a finishing technique that helps leave an impact on the audience's minds.

Learn more about speech's thesis: https://brainly.com/question/29796892

#SPJ4

Because wal mart has never systematically rasied prices there is no evidence that wal mart engaged in
a. predatory pricing
b. price discrimination which lessens competition
c. illegal tying
d. mergers and acquisitions which lessens compeititon
e. excusive dealings that restrict the ability of the buyer to deal with competitors

Answers

Because wal mart has never systematically raised prices there is no evidence that wal mart engaged in predatory pricing. Option a is right.

You would be involved in predatory pricing if you had a rival selling a TV for $100 and you sold the same TV for $80 (while suffering a loss) knowing they couldn't match your price. Many legal systems treat this very seriously and consider it unlawful in many nations.

Because wal mart has never systematically raised prices there is no evidence that wal mart engaged in predatory pricing. A written, verbal, or conduct-based agreement to raise, lower, maintain or stabilize prices or price levels is known as price fixing.

To learn more about predatory pricing

https://brainly.com/question/12751629

#SPJ4

A petroleum company produces 3 grades of motor oil â super, premium, and extra â from 3 components. The company wants to determine the optimal mix of the 3 components in each grade of motor oil that will maximize profit. The maximum quantities available of each component and their cost per barrel are as follows:
Component Maximum Barrels Available per Day Cost per Barrel
1 4,500 $12
2 2,700 $10
3 3,500 $14
To ensure the appropriate blend, each grade has general specifications. Each grade must have a minimum amount of component 1 plus a combination of other components, as follows:
Grade Component Specifications Selling Price per Barrel
Super At least 50% of 1 & Not more than 30% of 2 $23
Premium At least 40% of 1 & Not more than 25% of 3 $20
Extra At least 60% of 1 & At least 10% of 2 $18
The company wants to produce at least 3,000 barrels of each grade of motor oil.
Formulate a linear programming model for this problem (define your decision variables; write the objective function and all the relevant constraints). For this question, follow the answer given under blending problems discussed on pages 166-171 in the textbook.
Use the Excel Solver to find the optimal blend mix and the maximum profit. State the optimal blend mix and maximum profit.

Answers

Si, Pi, and Ei >= 0 Let P1, P2, and P3 represent the number of barrels (of component 1, 2, or 3) that will be utilized to create premium grade oil.

What is the term "company" mean?

A firm is a legal body created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Based on the corporate legislation of its jurisdiction, a corporation may be set up in a number of ways for tax and current burden reasons.

Briefing:

LP model is following:

Let S1, S2, S3 be the quantity (barrels) of component 1,2,3 to be used to produce Super grade oil

P1, P2, P3 be the quantity (barrels) of component 1,2,3 to be used to produce Premium grade oil

E1, E2, E3 be the quantity (barrels) of component 1,2,3 to be used to produce Extra grade oil

Max 23(S1+S2+S3)+20(P1+P2+P3)+18(E1+E2+E3)-12*(S1+P1+E1)-10(S2+P2+E2)-14(S3+P3+E3)

s.t.

S1+S2+S3 >= 3000

P1+P2+P3 >= 3000

E1+E2+E3 >= 3000

S1 > 0.5(S1+S2+S3)

S2 <= 0.3(S1+S2+S3)

P1 >= 0.4(P1+P2+P3)

P3 <= 0.25(P1+P2+P3)

E1 >= 0.6(E1+E2+E3)

E2 >= 0.1(E1+E2+E3)

S1+P1+E1 <= 4500

S2+P2+E2 <= 2700

S3+P3+E3 <= 3500

Si, Pi, Ei >= 0

To know more about company visit:

https://brainly.com/question/29354835

#SPJ4

cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $360,000

Answers

Accrual net income is $192,600. Accrual net income is a measure of a company's financial performance that reflects the revenues and expenses it has earned or incurred during a specific period of time, such as a month or a year.

How to find Accrual net income ?

To calculate accrual net income, we need to consider the company's revenues and expenses for the year, including any prepaid expenses or accounts receivable.

Based on the information provided, the company's total revenues for the year were $360,000.

Its total expenses = $44,000 for rent

Employee salaries = $124,000

$54,000 for utilities

for a total of $222,000.

The company had prepaid rent of $22,000 (half of the total rent payment), which should be subtracted from its expenses. It also had accounts receivable of $64,000, which should be added to its revenues.

Finally, we need to adjust for any outstanding liabilities. The company had a liability to the gas and electric company of $2,400, which should be subtracted from its expenses.

With all of these adjustments, the company's accrual net income for the year is calculated as follows:

Revenues: $360,000

Expenses: $222,000

Prepaid rent: -$22,000

Accounts receivable: $64,000

Outstanding liabilities: -$2,400

Accrual net income: $192,600

complete question:

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $360,000; Cash paid for rent, $44,000; Cash paid to employees for services rendered during the year, $124,000; Cash paid for utilities, $54,000.

In addition, you determine that customers owed the company $64,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,400 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

To learn more about Accrual net income refer :

https://brainly.com/question/29570618

#SPJ4

A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except A. demand for the firm's product becomes more elastic. B. new rivals entering the market. C. a decrease in the number of rival products. D. a decrease in demand for its product.

Answers

All of the following, with the exception of C, will apply over time to a firm that is operating profitably in a monopolistically competitive market.

What happens to a monopolistic rival's earnings over time?

Long-term economic gains or losses in monopolistic competition will be removed by entry or leave, leaving firms with no economic gains. There will be some excess capacity in a monopolistically competitive business; this could be seen as the price paid for the variety of products that this market structure brings about.

Companies engaged in monopolistic competition generate economic profits in the short term, but not over the long term. The latter is a product of the industry's open entry and departure policies as well.

To know more about monopolistic competition, refer:

https://brainly.com/question/29676613

#SPJ4

0.0% complete question if managed improperly, which of the following would be most detrimental to access management of cloud-based storage resources?

Answers

If managed improperly Resource policies would be most detrimental to access management of cloud-based storage resources

An accessibility feature's resources and behaviors are specified by a resource policy, which is a system rule. An action is to "allow" or "deny" a resource or to conduct or not perform a function, and a resource can be a server or a file that may be accessed through the system.

HR policies are ongoing instructions on the strategy that a company wants to use to manage its employees. In addition to outlining the organization's intentions on many facets of human resource management, such as recruiting, promotion, compensation, training, and selections, they serve as precise guidelines for HR managers on a variety of employment-related issues.

To learn more about resource policy refer here:

https://brainly.com/question/29452098

#SPJ4

Exercise
Two countries: the U.S. and Japan
Two goods: computers and wheat
• One resource: labor, measured in hours
• We will look at how much of both goods each country
produces and consumes - if the country chooses to be self-
sufficient - if it trades with the other country
Computer is on Horizontal axis
.
US
Japan
50,000 labor hours 30,000 labor hours
Computer Wheat Computer Wheat
50,000 0
30,000
0
40,000 10,000 25,000
5,000
30,000 20,000 20,000 10,000
25,000 25,000 15,000 15,000.
20,000 30,000 10,000 20,000
10,000 40,000 5,000
25,000
0
50,000
0
30,000
US
Production
100 hours = 1 computer 125 hours = 1 computer
10 hours 1 ton of wheat 25 hours = 1 ton of wheat
Japan
Production
Computer Wheat
0
500
Computer
240
Wheat
0
a. Calculate the production of computer and wheat for each
country.
b. Draw a production possibility curve for the US. Suppose
the U.S. uses half its labor to produce each of the two
goods. Then it will produce and consume 250 computers
and 2500 tons of wheat. Plot it on the graph.
c. Draw a production possibility curve for Japan. Suppose
Japan uses half its labor to produce each good. Then it will
produce and consume 120 computers and 600 tons of
wheat.
d. Suppose the U.S. produces 3400 tons of wheat. How many
computers would the U.S. be able to produce with its
remaining labor? Draw the point representing this
combination of computers and wheat on the U.S. PPF.
e. Suppose Japan produces 240 computers. How many tons
of wheat would Japan be able to produce with its remaining
labor? Draw this point on Japan's PPF.
f. Suppose the U.S. exports 700 tons of wheat to Japan, and
imports 110 computers from Japan. (So, Japan imports 700
tons wheat and exports 110 computers.) How much each
country gain from trade?
g. Who has the absolute advantages? Comparative
advantages? Why?

Answers

When each nation focuses on the good it produces at the lowest cost, two nations can benefit from trade.

What  are the comparison of both Countries ?

Absolute advantage calculates a product's cost based on the inputs needed to make it.

The amount of wheat that could be produced using the effort required to make one computer, in our example, is the opportunity cost of a computer.

Remember that opportunity cost also counts as a cost.

The amount of wheat that could be produced using the effort required to make one computer, in our example, is the opportunity cost of a computer.

Learn more about  both countries comparism here

https://brainly.com/question/14743428

#SPJ1

assume the demand curve for a good is perfectly inelastic and the production of each unit of this good generates external costs. a profit-maximizing firm producing the good in an unregulated free market will

Answers

According to the given statement not generate deadweight loss because the equilibrium quantity is socially optimal.

What are external costs and benefits?

External costs are borne by a party unrelated to the transaction. The comparison between internal and exterior benefits is identical. Private advantages are perks received by people who buy and use a product. External benefits are benefits received by a party other than the customer or even the vendor.

Who covers external costs?

When services and products are created and consumed, external costs are expenses that are placed on a third party. The general public, who ultimately pays for them, is effectively subsidizing products and services having external costs.

To know more about External costs visit:

https://brainly.com/question/28261095

#SPJ4

ap comparative governmentwhat are some of the goods or services that make up the gdp of the us? based on what you read in the mexico article

Answers

A basic college-level course in comparative government and politics, AP Comparative Government and Politics is offered.

Examining six chosen nations—China, Iran, Mexico, Nigeria, Russia, and the United Kingdom—the course takes a comparative approach to look at their political systems, policies, and political, economic, and social issues. Through the analysis of data and text-based sources, students Politics develop their understanding of comparative government and politics as they investigate issues such as power and authority, legitimacy and stability, democracy, internal and foreign influences, and methodologies of political analysis. ​​​​​​

This course framework offers a description of the course requirements necessary for student achievement and is based on the Understanding by Design® (Wiggins and McTighe) paradigm. With a focus on broad ideas that include fundamental concepts, theories, and procedures of the subject, the framework outlines what students should understand and be able to achieve. The framework also supports education that prepares students for advanced comparative political science coursework as well as for involvement in and knowledge of international politics.

Learn more about Politics here

https://brainly.com/question/10369837

#SPJ4

A sociologist taken a survey of the previous lottery winners of one million Birr has taken and found that 80% of these winners continue to work on their job. A psychologist felt otherwise. To test the report of the state, he took a sample of 100 such winners at random and found that only 25 winners of this sample had quit their jobs. At 95% confidence level, can we conclude that the state

Answers

Gambling can lead to the sudden acquisition of riches, which can lead to changes in the gambler's circumstances in a number of different ways.

What is Gambling and employement behaiviour ?

Prize recipients can then afford to fulfill their long-held desires, such as purchasing a home or automobile, taking luxurious vacations, paying off debt, or providing for their offspring and grandchildren.

Alternatively, as the need for cash from employment gets dramatically reduced, the winners may lower the amount of time they spend in paid jobs—or even quit them altogether.

Surveys on work attitudes frequently ask respondents if they would keep working even if they won the lottery or inherited a sizable quantity of money.

Learn more about Behaviour here

https://brainly.com/question/27683109

#SPJ1

ace corporation recently purchased a new machine for its factory operations at a cost of $950,000. the investment is expected to generate $250,000 in annual cash flows for a period of five years. the required rate of return is 8%. the new machine is expected to have zero salvage value at the end of the five-year period.

Answers

The internal price of return (IRR) is a metric used in financial analysis to estimate the profitability of attainable investments. IRR is a cut price charge that makes the internet current value (NPV) of all cash flows equal to zero in a discounted cash float analysis.

The formula for calculating the internal rate of return (IRR) is as follows:

  Internal Rate of Return (IRR) = (Future Value ÷ Present Value)^(1 ÷ Number of Periods) – 1.

   0 = CF t = 0 + [CF t = 1 ÷ (1 + IRR)] + [CF t = 2 ÷ (1 + IRR)^2] + … + [CF t = n ÷ (1 + IRR)^n]

   0 = NPV Σ CFn ÷ (1 + IRR)^n.

IRR calculations matter on the same method as NPV does.

Calculate the internal rate of return.

The inner charge of return is closest to 10%

For calculating IRR, there is trial & error approach wherein you use discount price & locate out the fee of discount by way of trial & error whereby NPV is zero, or you can use excel for this calculation

Step 1. Plot the cashflows as in excel

Year 0       Year 1        Year 2       Year 3      Year 4     Year 5

-950,000  250,000  250,000  250,000  250,000  250,000

Step 2 Use Formula IRR =IRR ( range)

Internal price of return = 10%

What is IRR and example?

IRR is the price of pastime that makes the sum of all cash flows zero, and is useful to compare one investment to another. In the above example, if we substitute 8% with 13.92%, NPV will come to be zero, and it really is your IRR. Therefore, IRR is described as the bargain rate at which the NPV of a challenge will become zero.

Learn more about internal rate of return here:

https://brainly.com/question/13373396#SPJ4

People often buy. When they lack enough money to diversify their investments among several stocks

Answers

People often buy mutual funds when they lack enough money to diversify their investments among several stocks.

What is mutual funds?

A mutual fund can be defined as the way in which a company tend to collect money from investors and then invest the money into buying of securities such as bonds, stocks among others.

People tend to invest  in mutual fund because they want mutual funds companies to help them to invest their money into different type of securities so as to earn more profit and some do buy mutual fund when they do not have enough money  to diversify their investments.

Therefore the statement that filled the gap is mutual finds.

Learn more about mutual funds here:https://brainly.com/question/4521829

#SPJ1

The complete question is:

People often buy ___ ___ when they lack enough money to diversify their investments among several stocks.

Which of the following statements is most correct? (a) When calculating NPV for cash flows of higher-than-average risk, the discount rate should always be adjusted upward to reflect the corporate cost of capital plus a risk premium. (b) A weakness of the certainty equivalent method of adjusting project cash flows for risk is that it does not allow individual cash flows to be adjusted to reflect their own unique risk. (c) The risk-adjusted discount rate method of valuation assigns equal risk to all project cash flows since a constant discount rate is applied over the life of the project. (d) The certainty equivalent value of a net cash outflow will be higher (in absolute value) than the expected value if the cash outflow has greater-than-average risk. (e) None of these statements is correct.

Answers

The certainty equivalent value of a net cash outflow will be higher (in absolute value) than the expected value if the cash outflow has greater-than-average risk. So option (D) will be regarded as suitable.

Give a brief account on cash outflow.

Although a company's cash outflow includes all of its payments, it can be broken down into various categories. The most typical types of cash leakage include:

Operating activities are those that depend on cash flow and are tied to net revenue. This could involve paying wages to staff, paying suppliers, and spending money on maintaining equipment and plants.Investing activities: The cash outflow connected to investing activities pays for the costs associated with the non-current assets shown on the balance sheet. Examples include the price of buying assets or loans to third parties.Financing activities: This category of cash outflow includes shareholder equity-related activities like dividend payments and share repurchases that are tied to non-current liabilities (i.e., obligations that are due in more than a year).

The definitions of cash outflow that must be used while creating a cash flow statement are as follows. This statement details both the cash inflow and outflow within a certain accounting period.

To know more about, cash outflow, visit :

https://brainly.com/question/27833192

#SPJ4

which of the following is not a subcategory of postmodernist art?

Answers

Abstract expressionism is not a subcategory of postmodern art, according to the question.

What do you mean by Postmodern Art?

Postmodern Art rejected modernism's established values in favour of experimenting with new media and artistic genres such as intermedia, installation art, conceptual art, multimedia, performance art, and identity politics. Pop art, conceptual art, collage, installation art, video art, neo-expressionism, appropriation, feminist art, and performance art are only a handful of the many aesthetic trends that comprise postmodern art.

Abstract expressionism, a post-World War II art movement in American painting, was born in New York City in the 1940s. It was the first purely American movement to have an international impact, and it displaced Paris as the centre of Western art.

Learn more about Postmodern Art , visit:

https://brainly.com/question/8961321?referrer=searchResults

#SPJ4

Select the correct answer.
When will the Social Security fund dry up at its current level?
O A.
2022
• B.
2027
C.
2037
O D.
2097
O E.
2117

Answers

Answer:

The answer to ur question is C. 2037

as one proceeds from left to right across a given period on the periodic table, and top to bottom, the atomic radius of the elements generally:

Answers

As one proceeds from left to right across a given period on the periodic table, the atomic radius of the elements generally decreases and it increases from top to bottom.

How does the periodic table change as you walk from left to right?

Moving from left to right in a period of the periodic table results in a reduction in atom size. With an incremental in the atomic number, the number of protons and the nuclear positive charge both rise. The atom's size diminishes when the nucleus draws in the outermost electron.

In general, the atomic radius grows down a group and decreases over a period. Over time, effective nuclear charge rises but electron shielding stays the same. Moving from left to right throughout a period, the effective nuclear charge also rises as the atomic number climbs. The nucleus pulls on the outer electrons more strongly as it moves from left to right over a period and the atomic radii decrease.

To learn more about incremental, visit:

https://brainly.com/question/29567211

#SPJ4

TRUE/FALSE. despite that and the trillions of dollars the fed pumped into the economy from 2009 through 2015, the economy grew at only a meager pace

Answers

The answer to the above phrase is TRUE. As the economy progressed slowly.

What happened to the American economy in 2009?

Real GDP plummeted 4.3 percent from its peak in the fourth quarter of 2007 to its lowest point in the second quarter of 2009, the largest drop in postwar history (based on data as of October 2013). The unemployment rate rose from 5% in December 2007 to 9.5% in June 2009, reaching 10% in October 2009.

Has the economy of the United States rebounded since 2008?

Full-time employment did not recover to pre-crisis levels until August 2015. The unemployment rate ("U-3) climbed from 4.7% in November 2008 to 10.0% in October 2009 before decreasing down to 4.7% in November 2009.

To know more about Great Recession of 2008-2009 visit: https://brainly.com/question/13763523

#SPJ4

Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles?
a. Event is unusual in nature and occurrence of event is probable.
b. Event is unusual in nature and event occurs infrequently.
c. Amount of loss is reasonably estimable and occurrence of event is probable.
d. Amount of loss is reasonably estimable and event occurs infrequently.

Answers

C) The amount of loss can be reasonably estimated, and an event is likely to occur.

A contingent liability is a loss or liability that could occur in the future. The amount must be disclosed in the financial statements' notes if it cannot be reasonably estimated, while it must be recorded in the financial statements when it can be reasonably estimated.

What exactly are "potential liabilities"?

Description: A liability or potential loss that may occur in the future depending on the outcome of a specific event is referred to as a contingent liability. Some examples of contingent liability include pending investigations, product warranties, and potential lawsuits.

To learn more about contingent liability here:

https://brainly.com/question/29035187

#SPJ4

Which is the best capacity for anoversizearray that records daily phone sales during a month. Maximum number of sales for a single day is 100.
a. 30
b. 31
c. 99
d. 100

Answers

Explanation:

Vinod Airtel line segment join in a minute app to see divided a triangle acid into part equal in area

brief exercise 9-5 match bond terms with their definitions (lo9-4) listed below are terms and definitions associated with bonds. select the bond term that matches with the definition.

Answers

The bond terms are as follows in accordance to the question : Callable Bond, Serial Bonds, Unsecured Bonds, Convertible bond, Sinking Fund, Term Bond, Secured Bond, Bonds Issue cost.

Give a brief account on bonds.

A bond can be thought of as an investor's loan to a borrower, such as a business or the government. While the investor earns interest on their investment, the borrower utilizes the money to finance its activities. Over time, a bond's market value may fluctuate. Bonds are fixed-income securities, one of the three major asset classes, or clusters of comparable investments, that are often employed in investing. Bonds are a sort of fixed-income security because they repay the investor on a consistent basis, or at a "coupon rate," which is how they function.

A $10,000 bond, for instance, with a 10-year maturity date and a 5% coupon rate would pay $500 year for ten years, after which the bond's $10,000 face value would be returned to the investor.

To know more about, bonds, visit :

https://brainly.com/question/17405470

#SPJ4

The complete question is attached below :

Consider a town in which only two residents, Lorenzo and Neha, own wells that produce water safe for drinking. Lorenzo and Neha can pump and sell as much water as they want at no cost. Assume that outside water cannot be transported into the town for sale. The following questions will walk you through how to compute the Cournot quantity competition outcome for these duopolists. Consider the market demand curve for water and the marginal cost for collecting water on the following graph. Assume Lorenzo believes that Neha is going to collect 12 gallons of water to sell. On the graph, use the purple points (diamond symbols) to plot the demand curve (D1) Lorenzo faces; then use the grey points (star symbol) to plot the marginal revenue curve (MR1) Lorenzo faces. Finally, use the black point (plus symbol) to indicate the profit-maximizing price and quantity (Profit Max 1) in this case. Instead, now assume Lorenzo believes that Neha is going to collect 16 gallons of water to sell, rather than 12. On the following graph, use the purple points (diamond symbol) to plot the demand curve (D2 ) Lorenzo faces; then use the grey points (star symbol) to plot the marginal revenue curve (MR2 ) Lorenzo faces. Finally, use the black point (plus symbol) to indicate the profit-maximizing price and quantity (Profit Max 2) in this case. Fill in the following table with the quantity of water Lorenzo produces, given various production choices by Neha. Given the information in this table, use the green points (triangle symbol) to plot Lorenzo's best-response function (BRF) on the following graph. Since Lorenzo and Neha face the same costs for producing water, Neha's best-response function is simply the reverse of Lorenzo's; that is, the curve has the same shape, but the horizontal and vertical intercept values are switched. Therefore, you can derive Neha's best-response function by following the same analysis as in the previous question, but from Neha's perspective. Use the purple points (diamond symbol) to plot her best-response function on the graph. Finally, use the black point (plus symbol) to indicate the unique Nash equilibrium under Cournot quantity competition. True or False: According to her best-response function, Neha will always want to decrease her output as Lorenzo decreases his. O True O False

Answers

1) Demand curve moves twelve degrees inward. Demand for quantity decreases by 12 at every price.

2) MR = MC = 0 in an equilibrium state.

The demand curve shifts inward by 16 when Neha collects 16 gallons.

3) The claim is false because Neha's quantity increases while Lorenzo's quantity decreases.

A demand curve in economics is a graph that shows the relationship between the cost of a given good and the amount that is desired at that cost. Demand curves can be applied to the price-quantity relationship for either a specific consumer or for every consumer in a given market.

When companies decide on prices, the demand curve can be a useful tool. This is so that the demand curve can demonstrate the price at which consumer responsiveness declines and the price at which the greatest demand is elicited.

To know more about Demand, refer to this link:

https://brainly.com/question/14456267

#SPJ4

Other Questions
Imagine that you were given the choice to live in a town like the one shown in the first slide or the one shown in the second slide. Which one would you choose? Explain your answer . Erik has 5 blue marbles and 13 red marbles in a box. He randomly draws one out. Find P(Red) in fraction form. Changing verbs ustedes/soaryo/pedir nostros/comenzar ustedes/comenzarl/comenzar nosotros/dormir yo/empezaryo/perder ustedes/pensar usted/comenzar t/empenzer ellas/querer ustedes/almorzarella/empezarellos/pedirellas/dormirusted/almorzarusted/soar Quiero denunciar el robo o plagio de una respuesta dada por m, hace unos das. Un usuario (luciamirella15) borr mi nombre alegando que esa respuesta era incorrecta, sin embargo, la sigue usando pero bajo su nombre, como si fuese de su autora, lo cual me parece nada tico.Por favor, hagan algo al respecto, pues eso no est nada bien. Gracias. Two hammers and a screwdriver cost a total of 34. A hammer and 3 screwdrivers cost a total of 32. Find the price of each type of tool Sometimes hikers carry radio beacons so that search and rescue teams can find them in case of emergency. Some of these beacons transmit radio waves with a frequency of 300,000 Hz. (300kHz) What is the wavelength of these waves? You earn $86,000 the first year you graduate from college with a master's degree in chemical engineering. If you should be saving 25% of your gross pay, how much should you save? A. $21,500 B. $64,500 C. $18,300 D. $12,400 Lisa Has $ 7.80 to spend on some tomatoes and loaf of bread. Tomatoes cost $1.20 per pound, and a loaf of bread costs $1.80.The inequality 1.20x + 1.80 7.80 models this situation, where x is the number of pounds of tomatoessolve the inequality how many piunds of tomatoes can lisa buy? Abe makes $18.50 per hour. He works 40 hours a week. He is considering renting an apartment that will cost $1,500 per month. What is the difference between his recommended rent amount and the cost of this apartment (round to the nearest dollar)? What was the effect of Marbury vs. Madison ruling on the Constitution and the laws made by legislature? Write it on paragraph, explain why student shouldn't leave school Children and teenagers should be active for how long every day? -less than 10 minutes -10-20 minutes -30 minutes -60 minutes Find the area and perimeter of the figure on the coordinate system below this is really simple but I can't wrap my head around it!! please help!The distance between Rosas house and her school is 3/4 mile. She ran 1/4 mile. What fraction of the way to school did she run? What class of chemicals is responsible for ozone depletion? The inequality The following is a list of vessels and structures that are associated with the heart.1) Right atrium2) Left atrium3) Right ventricle4) Left ventricle5) Superior & inferior vena cava6) Aorta7) Pulmonary artery8) Pulmonary vein9) Mitral/bicuspid valve10) Tricuspid valve11) Pulmonary semilunar valve12) Aorta semilunar valveWhat is the correct order for the flow of blood entering the heart from the BODY and leaving for PULMONARY CIRCULATION? Gina is 16 years older than her nephew Paul. In 3 years, she will be 3 times older than Paul. How old are Gina and Paul currently? MARKING BRAINLIEST!!!What is the circumference of circle P in terms of Pi? How did some nineteenth-century thinkers use science to promote racist beliefs?