Freddie Bamboozle Co. is considering a new project to invest in. The project will require an initial investment of $2,400,000 and is expected to generate $1,200,000 cash flows consistently for three years. What is the NPV for this project if the cost of capital is 15%. Show your workings
Answers
The NPV for this project, with a cost of capital of 15%, is -$1,059,510.23. Therefore, the project may not be a viable investment as it is not expected to generate sufficient returns to cover the initial investment and provide a positive net present value.
To calculate the Net Present Value (NPV) of the project, we need to discount the future cash flows from their present value and subtract the initial investment. The NPV formula can be expressed as:
NPV = CF₁ / (1 + r)¹ + CF₂ / (1 + r)² + CF₃ / (1 + r)³ - Initial Investment
Where:
CF₁, CF₂, CF₃ are the cash flows for each year
r is the discount rate or cost of capital
Initial Investment is the initial outlay required for the project.
Given that the initial investment is $2,400,000 and the cash flows are $1,200,000 consistently for three years, we can calculate the NPV.
NPV = $1,200,000 / (1 + 0.15)¹ + $1,200,000 / (1 + 0.15)² + $1,200,000 / (1 + 0.15)³ - $2,400,000
Calculating the values inside the brackets:
NPV = $1,200,000 / 1.15 + $1,200,000 / 1.3225 + $1,200,000 / 1.520875 - $2,400,000
NPV = $1,043,478.26 + $907,029.48 + $789,982.03 - $2,400,000
NPV = $1,340,489.77 - $2,400,000
NPV = -$1,059,510.23
Therefore, the NPV for this project, with a cost of capital of 15%, is -$1,059,510.23. Since the NPV is negative, the project may not be a viable investment as it is not expected to generate sufficient returns to cover the initial investment and provide a positive net present value.
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Related Questions
During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncollectible using the direct write-off method, and reported net income of $712,500. Determine what the net income would have been if the allowance method had been used and the company estimated that 1% of sales would be uncollectible.
Answers
The net income that would have been if the allowance method had been used is:$696,200.
Net incomeUsing this formula
Net income=Net income+Accounts uncollectible-(Sales×Estimated sales rate)
Let plug in the formula
Net income=$715,000+$48,600-($6,740,000×1%)
Net income=$715,000+$48,600-$67,400
Net income=$696,200
Therefore The net income that would have been if the allowance method had been used is:$696,200.
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Answer: 693700
Explanation:
Apply the 1% to the sales of 6,740,000.
( 6,740,000 x .01 ) = 67,400
Subtract by the original write off 48,600 from the total
( 67,400 - 48600 ) = 18,800
Subtract this from the reported net income.
( 712,500 - 18800 ) = 693,700
Hope this helps.
Describe the steps you would take to prepare yourself for a new job.
Answers
Answer:
Tons of research! Make sure to ask questions when employers ask if you have anything you would like to know. Dress appropriately for the job and job requirements and come prepared and try not to use words like "Um" and "I'm not sure" often!
Explanation:
Job prep!
A password that contains full sentences or lines from a favorite movie or book is called a
•catchphrase
•moviebook
•passbook
•passphase
Answers
Answer:
passphrase is the correct answer
Answer: passphrase
Explanation:
I did the exam
Which performance improvement method(s) will be the best if
"scope is dynamic, i.e. scope changes very frequently and durations
are hard to predict"? Circle all that apply.
a) Lean
b) Agile with Scrum
c) Agile with Kanban
d) Six Sigma
e) TOC
Answers
b) Agile with Scrum
c) Agile with Kanban performance improvement method(s) will be the best if"scope is dynamic,
Agile with Scrum and Agile with Kanban are the most suitable performance improvement methods when the scope is dynamic and durations are hard to predict.
Agile with Scrum is an iterative and incremental approach to project management that emphasizes flexibility and adaptability. It allows for frequent scope changes through short development cycles called sprints, providing the ability to respond to evolving requirements.
Agile with Kanban is another agile methodology that visualizes work on a Kanban board and uses a pull system to manage the flow of work. It enables teams to handle changing scope by dynamically adjusting the work in progress (WIP) limits and focusing on completing the most important tasks.
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the more of a good a person consumes per period, the smaller the increase in total utility, other things constant. true or false?
Answers
The statement "the more of a good a person consumes per period, the smaller the increase in total utility, other things constant" is true.
The principle you described is known as the law of diminishing marginal utility. According to this principle, as a person consumes more units of a good within a given period, the additional satisfaction or utility gained from each additional unit consumed tends to decrease.
In other words, the more of a good a person consumes, the smaller the increase in total utility they derive from each additional unit consumed. This is because as a person satisfies their initial wants or needs with the first units of a good, the marginal utility of consuming additional units diminishes. Each subsequent unit provides less additional satisfaction than the previous one.
For example, if someone is hungry and eats their first slice of pizza, the satisfaction gained from that first slice is typically high. However, as they continue to consume more slices, the additional satisfaction they derive from each subsequent slice diminishes. The law of diminishing marginal utility helps explain why people tend to experience diminishing returns in terms of satisfaction as they consume more of a good within a given period.
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If the value of the goods and services a country produces increases while its
population stays the same, which statement must be true?
A. The country's unemployment rate has decreased.
B. The country's total GDP has decreased.
C. The country's per capita GDP has increased.
D. The country's rate of inflation has increased.
Answers
If the value of the goods and services a country produces increases while its population stays the same, "the country's per capita GDP has increased."
This is based on the idea that per capita GDP is a form of GDP measure that divides the total GDP, particularly a country with the population or number of people living in that country.
Therefore, when the value of the goods and services a country produces increases while its population stays the same, "the country's per capita GDP has increased."
Hence, in this case, the correct answer is option C. "the country's per capita GDP has increased."
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Answer: The country's per capita GDP has increased. So "C" is right.
Explanation: Just took the quiz
Consider the following two financial assets:
A being an ordinary share that is expected to pay a dividend of £3 next year with dividend growth expected to be 5% per annum thereafter
B is a corporate bond with an annual coupon rate of 8%, a par (face) value of £100, and a maturity of 5 years. If the required return on similar UK equities is 8% and on the similar UK bonds are 7%
Calculate the value of the UK stock and the UK bond. Explain the duration of a bond. Using the data given above, calculate the duration of the corporate bond.
Answers
The value of the UK stock (Asset A) is £60.
The value of the UK bond (Asset B) is £104.57.
The duration of the corporate bond (Asset B) is 4.35 years.
The value of the UK stock (Asset A) can be calculated using the dividend discount model (DDM). Based on the information provided, the expected dividend next year is £3, and the dividend growth rate is 5%. Assuming a required return of 8% for similar UK equities, the value of the stock can be calculated as follows:
According to the DDM, the value of a stock is the present value of its future dividends. Using the formula for the present value of a growing perpetuity, the value of the stock can be calculated as follows: £3 / (0.08 - 0.05) = £60. Therefore, the value of the UK stock is £60.
Now, let's calculate the value of the UK bond (Asset B). The value of a bond is the present value of its future cash flows, which are the periodic coupon payments and the final principal payment at maturity. With an annual coupon rate of 8%, a par value of £100, a maturity of 5 years, and a required return of 7% for similar UK bonds, we can calculate the value of the bond.
To calculate the value of the bond, we need to discount each cash flow to its present value. Using the formula for the present value of a bond, the value of the bond can be calculated as follows: (£8 / 0.07) + (£8 / (1 + 0.07)^2) + (£8 / (1 + 0.07)^3) + (£8 / (1 + 0.07)^4) + (£108 / (1 + 0.07)^5) = £104.57. Therefore, the value of the UK bond is £104.57.
The duration of a bond measures its sensitivity to changes in interest rates. It is a weighted average of the times until each cash flow is received, with the weights determined by the present value of each cash flow relative to the bond's total value.
To calculate the duration of the corporate bond (Asset B), we need to determine the present value of each cash flow and its corresponding time. Then we multiply each present value by the respective time, sum them up, and divide by the bond's value.
We can calculate the duration of the bond by multiplying the present value of each cash flow by the respective time and dividing the sum by the bond's value. Using the formula for the duration, the calculation is as follows: (1 x £8 / £104.57) + (2 x £8 / £104.57) + (3 x £8 / £104.57) + (4 x £8 / £104.57) + (5 x £108 / £104.57) = 4.35 years. Therefore, the duration of the corporate bond is 4.35 years.
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Max is using a search engine to do research on trends in his industry when he comes across a website that isn’t necessarily related to his research–but is interesting and engaging. Without realizing it, Max spends over an hour browsing through the webpage’s numerous articles and links. When his boss asks him if his research report will be ready by the end of the day, Max isn’t sure how to respond. He’s hardly done any work–but it’s not like he was purposely avoiding work. He was using the search engine for the purpose of research, after all. It’s not his fault that the search results weren’t very relevant. Max is considering asking his boss for an extension on his deadline so that he can spend more time researching. What do you think? What should Max do?
Answers
In this situation, Max has to first give his boss some advance notice that he wont be able to complete the report before deadline, explain himself briefly as to why that is, then ask for more time to be able to complete the task.
What is a deadline?A deadline indicates that a task or project is anticipated to be finished by that date and time. There is a clear expectation of what must be provided and by when thanks to deadlines. Employees are able to take charge of their work in this way and include deadlines into their time management techniques.
It's critical to schedule deadlines in advance because your work may be delayed. Recognize that some resources might be delayed and that some people might not be available. You may prevent the disaster of missing a deadline by making plans in advance.
Deadlines are crucial in business for a variety of reasons. They establish standards and encourage productive behavior in the workplace.
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Which nims management characteristic refers to personnel requested through.
Answers
The NIMS (National Incident Management System) management characteristic that refers to personnel requested through appropriate authorities and dispatched to an incident from an agency, organization, or jurisdiction outside of the primary operating jurisdiction is called “Resource Management”.
Resource Management is one of the key components of the NIMS and encompasses the systematic and coordinated use of resources (personnel, equipment, supplies, and facilities) to respond to incidents effectively.
When an incident occurs, resource management requires a systematic approach to identifying the requirements for resources, prioritizing the needs, dispatching the resources, tracking their usage, and demobilizing them when they are no longer needed.
When personnel are requested through appropriate authorities and dispatched to an incident from an agency, organization, or jurisdiction outside of the primary operating jurisdiction, this process is called “mutual aid”.
This type of assistance is typically coordinated through established mutual aid agreements between the responding entities.
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A family with an income of 70,000 receives a raise of 2% in a year when inflation is 5%. Find the decrease in purchasing power.
Answers
Answer:
They make 3% less per year
Explanation:
I think this is what you're asking but don't quote me on it
to what extent do you believe a supply chain can be redesigned to compensate for poor product design or poor product quality?
Answers
The extent upto which a supply chain can be redesigned is to incorporate newly designed sites and resources into their system.
Without a strong supply chain network design tool, businesses could find it difficult to swiftly and easily integrate recently acquired sites and resources into their infrastructure. This may result in extended, ineffective transition times, resource waste on the part of the business, and a reduced rate of return on investment.
Redesigning the supply chain necessitates complicated skills like integrating with consumers and suppliers to produce value as well as gathering external data and turning it into actions that can result in products with a marketable worth.
Organizational redesign frequently occurs as a result of a business's expansion or desire to reduce its size. However, it could also be a result of a shift in the organization's strategy, leadership, or operating environment as a whole.
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Question
In the Newsela article “Health Benefits of Reading, Writing, Are Not Just for Patients," how does the author develop the central ideas that empathy is important to mental health and that reading and writing help foster empathy?
A, by relating first-hand experiences of people who have developed stronger empathy
B, by relating first-hand experiences of people who have developed stronger empathy
C, by implying that people who can use their imaginations creatively typically treat other people nicely
D, by implying that people who can use their imaginations creatively typically treat other people nicely
Answers
Answer:
dos so56 divid4 respuest 89
Coach Sieb Has a treadmill desk. Walking on the treadmill will break down her triglyceride Levels 90% faster what is the percent that it breaks down while sitting
Answers
Answer:
0%
Explanation:
Base on the scenario been described in the question, where we saw coach Seib has 90% faster breaking her triglyceride Levels while working, when sitting, she has a 0% of breaking her triglyceride Levels because no movement, there will be no breakdown in the triglyceride Levels
QUIIZZZ
10. Which statement is true?
(A) There are more developing than developed nations in the world.
(B) A relatively high percentage of the people in developing nations are employed in manufacturing.
(C) The populations in developing nations are growing more slowly than in the developed nations.
(D) Per capita GDP is higher in developing nations than in developed ones.
Answers
Answer:
I think your opinion D is correct answer
Is streaming Business in form 4 Diffult?. Justify your Answer.
Answers
Answer:
money
Explanation:
because when you have a business you are making money
Explain how an investor makes money by investing in bonds
Answers
Answer:
Financial investors earn money through the purchase of bonds, be these public (of countries or states) or private (that is, of companies) through speculation regarding the rise or fall of their value with respect to the purchase value, as well as with the interest that these bonds accrue periodically.
Thus, if the bond rises in value due to a good economic performance by the issuer, investors can sell it and make a profit, or even buy bonds at times of low values, expecting increases.
Bill is making $100 a week, and is saving for a $500 expense. How long will it
take him to save up enough money if he saves everything he earns?
OA. Exactly 5 weeks
OB. Less than 5 weeks
OC. Almost a year
O D. More than 5 weeks
SUBMIT
Answers
Answer: more than 5 weeks O D.
Explanation:
What responsibilities does a parent have in an American school system?
Answers
Anyone have a good name for a sports media company?
Answers
What does the doctrine of respondeat superior provide?
Answers
Answer:
The Respondeat Superior doctrine is a legal doctrine that establishes a rule for the adjudication of responsibilities in the event of damages or breaches in a situation in which there is a relationship of dependency between a superior and a dependent. Thus, this doctrine establishes that the superior will be responsible for the actions of his dependent, that is, in the event of non-compliance or damage by the latter (provided that said damage or non-compliance occurs in the exercise of their functions) the responsibility will assumed by the superior.
List the following documents in the order in which they are used when recording direct materials costs injob order cost accounting, with the first document on top.
1. Receiving reports
2. Materials ledger cards
3. Materials requisitions
4. Job cost sheets
Answers
The next table lists direct material costs in the order they were used. cost sheets for jobs, Materials requisitions, Materials ledger cards, Obtaining knowledge
On a materials ledger card, the raw material units that pass through a warehouse are manually recorded. Typically, the card has the following transactional data: Raw materials are carried from the warehouse to the plant floor after being purchased from vendors and recorded when received.
A list of a job's actual costs is called a job cost sheet. The report, which the accounting department put together, is given to the management team so they may decide whether a job was fairly bid. The sheet is usually finished after a work is finished, though it can be put together as you go.
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the owner of clean123 inc. withdraws $3,000 from the business. clean123 inc. will record this as a debit to which account?
Answers
If the owner of Clean123 Inc. withdraws $3,000 from the business, this transaction will be recorded as a debit to the Owner's Equity account and a credit to the Cash account.
Owner's Equity is a general ledger account that represents the owner's ownership interest in the company. It includes the initial investment made by the owner, any profits earned by the business, and any withdrawals made by the owner.
When the owner withdraws money from the business, it reduces the amount of money that the business has available for future operations. This transaction reduces the owner's equity in the business and reflects the fact that the owner has taken money out of the business for personal use.On the other hand, the credit to the Cash account reflects the fact that the business's cash balance has decreased as a result of the owner's withdrawal. This transaction will be recorded in the company's general ledger and financial statements, ensuring that the business's financial records accurately reflect the owner's withdrawal and its impact on the company's financial position.
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Answer: withdrawal account .
Explanation:
A company purchases a piece of machinery. This machinery is now the
company's
A. capital
B. liability
C. asset
D. equity
Answers
Answer:
my answer is C...the asset
2. analyzing occupancy rates as you can see from the article in the prior problem, "rents hit all-time highs amid job growth and low vacancy rates," some people move out as a result of rent increases, while others are ready to pay an even higher rent. rent control adds yet another aspect by setting a ceiling on what the rental price can ultimately rise to. the supply and demand model can be used to illustrate the mechanism that leads to all these different market outcomes. consider the market for rental properties in los angeles and orange counties in southern california. suppose that while average earnings increased by about 10% in los ang
Answers
The demand for rental apartments and flats would increase, rent would go to an all-time high, and let's assume that average earnings in Los Angeles increased by around 10%.
What is meant by a pricing ceiling?The imposed maximum price a seller is allowed to keep for a good or service is known as a price ceiling. Price ceilings are often imposed to necessities like food and energy supplies when they become unaffordable for average customers. Price ceilings are typically established by law. In short, a price cap is a form of pricing control.
Who stands to gain from a price cap?The product will benefit those who are able to purchase it at the reduced price set by the price ceiling, but suppliers of will be in loss.
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XYZ Company plans to sell 11,000 units of its product in January and another 10,000 in February. The beginning balance of finished goods is 1,100 on January 1 and XYZ Company wants an ending balance on January 31 of 1,000 units. How many units of its product should XYZ Company produce during January to meet its goals?
a. 9,900
b. 10,900
c. 11,000
d. 12,000
Answers
Answer:
10,900 units
Explanation:
The applicable formula is the formula for calculating the cost of goods sold, COGS.
COGS = The applicable formula is the formula for calculating the cost of goods sold, COGS.
COGS = Beginning inventory + purchases - closing inventory
In this case, COGS will be 11,000 units: Beginning balance 1100 and ending balance of 1000.
11,000 = 1100 + P -1000
11,000 = 1100-1000 +P
11,000 = 100 + P
P= 11,000 -100
P= 10,900
Productions should be 10,900
Which of the following is not an example of professional behavior
?
Answers
Gold has historically functioned as money. This is due, in part, to the willingness of others to accept it as valid payment for goods and
services. In this case, gold is functioning as an) (1 point)
Answers
The willingness of others to accept gold as a valid payment for goods and services made gold a medium of exchange. In other words, gold was used to facilitate commercial exchanges when these became more developed.
Money has changed and developed over time, it has always been used to make business practices more simplified and standardized.
Some examples of the use of a medium of exchange were salt, which was a rare mineral that was offered in trade, hence the word salary.
Therefore, gold began to be used as a means of exchange from the need to use coins with greater durability.
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If a stock you buy is $50 per share and pays $2 per year in total dividends;
what is the dividend yield of the stock?*
Answers
Answer:
4%
Explanation:
Dividend yield shows the dividends paid out annually as a percentage of the share market price.
The formula for calculating dividend yield is the annual dividend per share/market value per share.
Dividend yield = dividend/ market share price x 100
Dividend yield = 2/50 x 100
Dividend yield = 0.04 x 100
Dividend yield = 4%
Suppose GDP for 2020 was (in millions) $1,500, wages and salaries were $800, rent payments were $200, consumption was $1000, and interest payments were $200. What must the value of profits have been
Answers
GDP for 2020 was (in millions) $1,500,wages and salaries were $800,rent payments were $200,consumption was $1000, and interest payments were $200.
Find the value of profits:We know that:GDP = C + I + G + (X - M)Here, the value of GDP is $1,500Consumption (C) = $1,000Interest payments (I) = $200Therefore, investment (I) = GDP - C - I= $1,500 - $1,000 - $200= $300Further, we know thatNational Income = wages and salaries + rent payments + interest payments + profitsHere.
wages and salaries = $800Rent payments = $200Interest payments = $200National Income = $800 + $200 + $200 + Profits= $1,200 + ProfitsTherefore, Profits = National Income - ($1,200)= $1,500 - $1,200= $300Therefore, the value of profits must have been $300 million.Hence, the required value of profits was $300 million.
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Which of the following is not a principle regarding the way lean systems function? (I) Identifying customer values (II) Focusing on processes that create value (III) Elimination of waste to create flow (IV) Increasing forecast accuracy (V) Producing only according to customer demand (VI) Optimizing on setup costs with long production runs (VII) Striving for perfection
Answers
Answer: These are not principles regarding the way lean systems function IV) Increasing forecast accuracy
(VI) Optimizing on setup costs with long production runs
Explanation:
A Lean system principle applies that businesses and organisations plan and prioritize their work output in relation to identifying and catering to customer values thereby eliminating things that do not add value and on the other hand ensuring sustainability and productivity of the organisation as a whole.
There are basic principles businesses adopt to improving workplace productivity and efficiency which include:
1) defining customer value,
2)identify the factors that contribute to the value stream and waste elimination
3) creating flow and strategic processes that create value
4) Ensuring products are produced according to demand and the right time
5) Strive for perfection.
Therefore option IV) Increasing forecast accuracy and
(VI) Optimizing on setup costs with long production runs are not lean system principles.