1. NPV Project L requires an initial outlay at t=0 of $65,000 its expected cash inflows are $12,000 per year for 9 years, and its WACC is 9%, What is the project's NPV? The net present value is $6,942.96 2. IRR Refer to problem 11−1. What is the projects IRR?
Answers
To calculate the project's NPV, we need to discount the expected cash inflows using the project's WACC (Weighted Average Cost of Capital).
Using the formula for NPV:
NPV = Cash Inflows / (1 + WACC)^t
Where:
Cash Inflows = $12,000 per year for 9 years
WACC = 9%
t = year
Let's calculate the NPV:
NPV = ($12,000 / (1 + 0.09)^1) + ($12,000 / (1 + 0.09)^2) + ... + ($12,000 / (1 + 0.09)^9) - $65,000
Calculating the discounted cash inflows for each year and summing them up, we find:
NPV = ($12,000 / 1.09^1) + ($12,000 / 1.09^2) + ... + ($12,000 / 1.09^9) - $65,000
= $10,917.43 + $9,997.72 + ... + $4,123.74 - $65,000
= $69,429.69 - $65,000
= $4,429.69
Therefore, the project's NPV is $4,429.69.
Regarding the second question about the IRR (Internal Rate of Return), the IRR is the discount rate that makes the NPV of the project equal to zero. In this case, the IRR needs to be determined using the cash inflows of $12,000 per year for 9 years and the initial outlay of $65,000.
Using a financial calculator or spreadsheet software, the IRR is found to be approximately 11.17%.
Therefore, the project's IRR is approximately 11.17%.
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Related Questions
A project manager wants to use a group decision-making technique to generate, classify and prioritize requirements. Which of these is not a valid group decision-making technique?
A. Dictatorship
B. Majority
C. Unanimity
D. Singularity
Answers
Singularity of these is not a valid group decision-making technique. There are three main types of decision-making strategies: analytical, intuition-based, and random.
Even though we may not fully grasp how our minds function, some strategies combine intuitive and analytical elements to take advantage of our cognitive talents. The risk assessment of decisions requires strong decision-making abilities. They enable us to evaluate risk in addition to considering the advantages and disadvantages of the various possibilities. You'll become a better decision-maker strategies as you make better decisions. In daily life, there are many opportunities to make decisions, such as choosing what to dress. selecting a lunchtime meal.
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The sales of Sherwin-Williams paint in different regional markets depends on several input variables. One variable that partially drives selling price, which in turn affects sales, is the cost to get the product to market. When other input variables are held constant, sales can be modeled as
when it costs x dollars to get a gallon of paint to market, data from 0 ≤ x ≤ 2.
(Source: Based on data from Sherwin-Williams as reported in J. McGuigan et al., Managerial Economics, Stamford, CT: Cengage, 2008)
a. How many gallons of paint are sold when it costs 75 cents for a gallon to reach the market?
b. How quickly is sales changing when x = 0.75?
Answers
a.18.5 gallons of paint are sold when it costs $0.75 for a gallon of paint to reach the market
b. when x = 0.75, the rate at which the sales of paint is changing is -23.
a.Based on the data from Sherwin-Williams as reported in J. McGuigan et al., Managerial Economics, Stamford, CT: Cengage, 2008, the sales of paint are given byS(x) = 8 + 16x − 25x2.
In this scenario, the value of x is 0.75 as the cost to get a gallon of paint to the market is $0.75 per gallon.
Then, the number of gallons of paint that are sold is given by substituting x = 0.75 in the sales equation.
S(x = 0.75) = 8 + 16(0.75) − 25(0.75)2= 18.5
Therefore, 18.5 gallons of paint are sold when it costs $0.75 for a gallon of paint to reach the market
b. The rate at which the sales of paint is changing at x = 0.75 is given by the derivative of the sales equation with respect to x.
dS/dx = 16 − 50x.
Substituting x = 0.75 in the above expression gives:dS/dx (x = 0.75) = 16 − 50(0.75) = −23.
Therefore, when x = 0.75, the rate at which the sales of paint is changing is -23.
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A farmer has developed a new type of fertilizer. This new fertilizer costs 20 percent more to produce than the old fertilizer but has better results: The same land now produces 25 percent more crops each year.
Which statement best describes one way the farm will be affected by using this new fertilizer?
A. The farm's opportunity cost for using fertilizer will increase.
B. The farm's marginal cost for fertilizer will increase.
C. The farm's marginal cost for fertilizer will decrease.
D. The farm's opportunity cost for using fertilizer will decrease.
Answers
Answer:A is your answer hope it helps
Explanation:
One of the purposes of market segmentation is to determine the best customer for the service or product and then to target that group
through marketing.
True
False
Answers
Answer:
true
Explanation:
The Feasibility study is very important when planning and designing a hotel property: a) Explain what is a feasibility study and state which stakeholders may have an interest in the study. b) Discuss three reasons why the feasibility study is important (what information can be obtained from the report). c) What could be possible problems that could occur if a hotel decided to skip doing a feasibility study before starting a hotel proj
Answers
If a feasibility study is skipped before beginning construction on a hotel, it can lead to costly blunders, delays, and an increased risk of the project being unsuccessful.
A feasibility study is an analysis conducted to determine the practicality and likelihood of completing a proposed project or venture. This study assesses the project's feasibility and examines all factors that may impact its success or failure. The feasibility study serves as a decision-making tool for stakeholders to decide whether or not to proceed with the project. Some of the stakeholders who may have an interest in the study are investors, developers, bankers, construction companies, and management companies. Three reasons why the feasibility study is essential for hotel properties include identifying and minimizing risk, understanding the competition, and determining the financial viability of the project. The feasibility study report provides a detailed analysis of the project's market potential, competition, financial projections, site assessment, and environmental factors. This report can assist stakeholders in understanding the project's feasibility and making informed decisions based on the data presented.
If a hotel property decides to skip the feasibility study, several issues may arise, such as cost overruns, time delays, inadequate financial projections, and a lack of understanding of the competition, which could lead to failure.
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what is the differences and similarities between rental goods services and non goods services
Answers
Answer and Explanation:
Rented-Goods Services are represented by retailom where consumers can own a good, or use a service for a specified time. As an example of this, we can mention hotel rooms, ski clothes, cars, houses, among others.
Nongoods Services are also represented by retail, but it presents personal services, where consumers can try them, judge them and then decide if they want to own them.
Define a Small Scale Enterprise as per ‘MSMED Act, 2006’.
Answers
Explanation:
the Government of India has in acted, small and medium enterprises development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is an enterprise where the investment in plant and machinery is more than rate 25 lakh but does not exceed rate.
Your friend has been accepted into her #1 choice for college. She’s so excited that she doesn’t bother looking at her financial aid package and wants to confirm her spot right away. What do you tell her and why?
Answers
you should say that although you are beyond ecstatic for her, financial aid is vital for many who are applying to colleges. This could harm her in the long run if she continuously ignores the situation. It could create debt that she may not be able to pay off for many years so it is best that she looks into the financial aid plan before securing a spot
It's natural to be excited and want to confirm her spot right away, but I would suggest that she take the time to review her financial aid package before making any decisions.
What is importance of financial aid package?It's important to understand the financial commitments and obligations that come with attending college, as it can have a significant impact on her future finances. By reviewing the financial aid package, she can get a better understanding of the costs of attending the college and the amount of financial aid she'll receive, including scholarships, grants, and loans.
If she doesn't take the time to review the financial aid package, she may end up with unexpected costs and debt that could have been avoided. It's important to make an informed decision about college and ensure that it's a financially sound decision.
Therefore, I would advise your friend to take the time to review her financial aid package and understand the costs and obligations of attending her dream college before confirming her spot.
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(100 POINTS)How much money will i make my first week from dropshipping
Answers
On April 1, 2021, Farid sold a house to Amy. The property tax on the house, which is based on a calendar year, was due September 1 2021. Amy paid the full amount of property tax of $ 1,100. Required: Calculate both Farid's and Amy's allowable deductions for the property tax. Assume a 365-day year.
Answers
Amy's allowable deductions for the property tax are $1,100.
When Amy paid the full amount of property tax on the house, she will be entitled to a full deduction of $1,100. Farid's deduction will be based on the number of days in the year before the sale of the house. In this question, a calendar year of 365 days has been assumed. Farid's property tax deductions
calculation: There are 91 days from January 1 to April 1 ( 91/365 x $1,100 = $274.79)Therefore, Farid's allowable deductions for property tax are $274.79Amy's property tax deduction calculation: Since Amy paid the full amount of property tax which is $1,100. Thus, Amy's allowable deductions for the property tax are $1,100.
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Why is it important for consumers to compare?
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Consumers compare brands, products, and product classes to allocate their budgets. They compare particulars on price and the mileage they anticipate to decide from the particulars' features.
It's especially salutary when buying precious particulars, particulars you buy frequently, or particulars where the product quality or price varies greatly. Through announcements, registers, and online quests, comparison shopping is easy and can save you, plutocrats.
Consumers compare brands for shopping is the only way to familiarize themselves with the stylish available interest rates, know how important analogous homes and buses are dealing for and ensure they pay as little as possible on your big expenditure.
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Do you think every working American needs a 401(k) account or an IRA? Why or why not?
No links
Need ASAP
Answers
Answer:
Both 401(k) accounts and IRAs are retirement savings accounts that allow individuals to save for retirement on a tax-advantaged basis. Contributions to these accounts are tax-deductible, and the earnings on the investments grow tax-free until they are withdrawn during retirement.
There are some benefits to having a 401(k) account or an IRA. They allow individuals to save for retirement in a tax-efficient way, and can provide a significant source of income during retirement. In addition, many employers offer matching contributions to 401(k) accounts, which can be a valuable incentive to participate.
However, there are also some drawbacks to these types of accounts. For example, they are subject to market fluctuations and the investment risk is borne by the individual. In addition, there are limits on how much can be contributed each year, which may not be enough to provide for a comfortable retirement.
Whether or not every working American needs a 401(k) account or an IRA depends on individual circumstances. For some people, these accounts may be a valuable tool for saving for retirement. For others, different types of retirement savings accounts or strategies may be more appropriate. Ultimately, it is up to each individual to determine the best approach for their own retirement planning.
What will be the end result for the taxpayer who filed his federal income tax return.
Answers
If your federal gross income was $12,950 or more and you're under 65, you must submit a single status tax return. If your federal gross income was $14,700 or more and you are 65 years of age or older, you must file.
What is the status of federal filing?
Determines the tax rate applied to income. Head of household, married filing jointly, married filing separately, single, and qualified widow(er) with dependent child are the five filing statuses. A tax year is the 12-month period of time that a tax return covers. The tax year for people in the US is from January 1 to December 31 and includes taxes due on income earned during that time. The Where's My Return? feature is the easiest method to find out if you've received a tax refund. After receiving an e-filed return, taxpayers have 24 hours to start monitoring the status of their refund. After the return is processed and a refund is approved, the program also offers a customized refund date.
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meaning of accounting
Answers
Answer:
Accounting is the process of recording financial transactions pertaining to a business.
An employee compiled sales data for a company once each month. The scatter plot shows the sales for the company over time. The equation represents the linear model for this data. Y = 0. 94x 12. 5 According to the model, what were the company's sales when the employee began collecting data? $5000 $12,500 $20,000 $35,000 $45,000 A graph measuring sales in relation to time. A line indicates that sales increase as time increases.
Answers
The company's sales when the employee began collecting data was $12,500.
To determine the company's sales when the employee began collecting data, we need to substitute the initial value of x (time) into the linear equation and solve for y (sales). As per the given information, the equation for the linear model is Y = 0.94X + 12.5.
Since the time value when the employee began collecting data is not given in the question, we can assume it to be zero, as it is common to use time zero as a starting point when plotting scatterplots. So, substituting x = 0, we get Y = 0.94(0) + 12.5 = 12.5.
Therefore, according to the linear model, the company's sales when the employee began collecting data was $12,500.
It's worth noting that linear models are simplified representations of real-world data, and there can be many factors that influence sales other than time. Hence, this linear model may not accurately represent the company's sales behavior in reality, and it is essential to consider other variables that may have an impact on sales.
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internal analysis enables a firm to determine what it:
Answers
Internal analysis provides valuable insights to firms for strategic decision-making, such as identifying growth opportunities, leveraging strengths, addressing weaknesses, and aligning resources and capabilities with the external market conditions.
Internal analysis enables a firm to determine what it **can do well and what its strengths and weaknesses are**.
Internal analysis involves assessing and evaluating the internal resources, capabilities, and competencies of a firm. It aims to identify and understand the internal factors that impact the firm's performance and competitive advantage. By conducting an internal analysis, a firm can gain insights into its core strengths, weaknesses, and areas where it has a competitive edge.
Key aspects that internal analysis focuses on include:
1. **Resource Assessment**: Identifying and evaluating the tangible and intangible resources that the firm possesses, such as financial assets, physical infrastructure, technology, human capital, and intellectual property.
2. **Capability Evaluation**: Assessing the firm's capabilities, which refer to its capacity to perform specific activities or tasks. This includes analyzing the skills, expertise, knowledge, and organizational processes that contribute to the firm's overall performance.
3. **Competitive Advantage Identification**: Determining the firm's competitive advantages or unique selling propositions that differentiate it from competitors. This involves identifying areas where the firm excels and has a distinct edge in the market.
4. **Weakness Recognition**: Identifying areas of weakness or limitations within the firm's internal operations or resources that may hinder its performance or competitive position.
Internal analysis provides valuable insights to firms for strategic decision-making, such as identifying growth opportunities, leveraging strengths, addressing weaknesses, and aligning resources and capabilities with the external market conditions. It helps firms understand their internal dynamics and develop strategies that capitalize on their strengths while mitigating weaknesses to achieve sustainable competitive advantage.
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Many politicians have degrees in business or law.
True
False
Answers
Although marketing strategy requires a good marketing mix, on which element of the mix is the Microsoft case focused?
Answers
Based on marketing strategy analysis, the excellent marketing mix that the Microsoft case focused on is Price.
This is because it has been observed that Microsoft generally sets the price of their products based on the cost of their competitors and the demand of the consumer.
This was evident when Microsoft set the price of their Windows OS at a premium rate due to its increased demands.
The other elements of marketing mix aside from Price include the following:
ProductPlacePromotionHence, in this case, it is concluded that the correct answer is "Price."
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Which of the following describes what is identified by a supply schedule?
a How much suppliers will profit at various prices
b How much consumers will save at various supply levels
c How much suppliers will raise prices as production varies
d How much of a product suppliers will produce at various prices
Answers
What is identified in a supply schedule is how much of a product suppliers will produce at various prices (option D).
What is a supply schedule?A supply schedule is a table that shows the price and quantity supplied of suppliers. It shows the total number of goods that would be supplied at various prices.
There is a positive relationship between price and the quantity supplied. This is because as price increases, there would be an increase in the quantity supplied. When price declines, there would be a decrease in the quantity supplied. This explains why the supply curve is positively sloped.
The supply schedule can be an individual schedule or a market schedule. When its an individual schedule, it contains information on only one supplier. If it is a market schedule, it aggregates the information of all the suppliers in the market.
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Frank is lending $1,000 to Sarah for two years. Frank and Sarah agree that Frank should earn a 1 percent real return per year. Instructions: Enter your responses as as whole numbers. a.The CPI (times 100) is 100 at the time that Frank makes the loan. It is expected to be 117 in one year and 136.9 in two years. What nominal rate of interest should Frank charge Sarah? The nominal rate of interest charged should be %. b. Suppose Frank and Sarah are unsure what the CPI will be in two years. How should Frank index Sarah's annual repayments to ensure that he gets an annual 1 percent real rate of return. Frank should charge Sarah % the inflation rate.
Answers
Answer:
a) 18%
b) if Frank and Sarah are unsure about future inflation rate, they can agree on a variable interest rate. For e.g. this year the inflation rate was 17%, so the interest charged is 18%. If next year the interest rate is 15%, then the interest charged should be 16%.
the formula that they can use to calculate inflation rate is:
for calculating the first year's inflation rate = [(CPI₁ - CPI₀) / CPI₀] x 100for calculating the second year's inflation rate = [(CPI₂ - CPI₁) / CPI₁] x 100Explanation:
principal $1,000
real return = 1%, that means that Frank will earn inflation rate + 1%
since the CPI increases by 17% every year, then Frank must charge 17% + 1% = 18%
Dexter has recently joined an organization. His trainer, ken asks dexter to follow certain processes to complete his work faster. Dexter follows the processes without questioning ken. Which one of Aristotle's elements of good communication is being exemplified in the communication between dexter and ken?
Answers
Answer:
Ethos
Explanation:
Ethos is one of the three Aristotle's elements of good communication that is based on credibility. It explains the reason why a listener should believe what you are saying to them.
This can also come as a result of ones position and in the environment where he is communicating or because of his expertise and skills and knowledge in the subject of communication which actually convince the listeners that you are more knowledgeable.
Ken's position as Dexter's trainers makes allows his credibility to Ken.
Answer:
Ethos
Explanation:
Answered it right on edmentum
Brainley is not letting me make an account and I don't know the email so that I can email them!!! helppp!!! plsss
Answers
Answer:
you are using an account right now.
Explanation:
Use these graphics to answer the question.
An association of medical researchers examined exercise trends among adults.
pls help need an answer fast
Which ratio shows the relationship between the total percent of people who exercised in 2014 to the percent of adults ages 18–24 who exercised in 2016?
47:42
58:45
48:59
48:50
Answers
The ratio that represents the relationship between the total percent of people who did exercise in 2014 compared to the the percent of adults ages 18–24 who exercised in 2016 is 48:59.
What is a ratio?A ratio is the comparison of two figures, this can be done with the past data, or can be done with the budgeted or any competitor. In the example given the data is compared with the past data, base year is 2014 and the current year is 2016.
The ratio that is calculated represents that the total percentage of people were 48% in 2014 and the adults in 2016 as a total represents a percentage of 59% and therefore the ratio is 48:59.
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Comprehension Que
1. What was the occupation of Husni before he relocated to the city?
Answers
Answer:
Egyptian military and political leader
Outsourcing is becoming more and more common, but it is a controversial idea in the United States. Why do you think this is such a highly contested idea? Do you think outsourcing is a good idea or a bad one? Explain the reasons for your answer.
Answers
Answer:
Outsourcing is a contested idea because the original company loses control of the job they are trying to complete. Outsourcing is a bad idea because it also causes jobs to be lost. (you might want to change the wording a bit.)
Explanation:
money market securities a) are short term. b) are highly marketable.
Answers
Both options (a) and (b) are correct for money market securities. Money market securities are short-term financial instruments with a maturity period typically less than one year.
They are designed to provide liquidity and short-term financing options for borrowers and investors.
b) Money market securities are highly marketable, meaning they can be easily bought and sold in the financial markets. They are considered to have high liquidity due to their low risk and widespread acceptance in the financial industry.
Money market securities include instruments such as Treasury bills, commercial paper, certificates of deposit, repurchase agreements, and short-term government and corporate bonds. These securities are often used by investors and institutions to park excess funds or seek short-term investment opportunities while preserving capital and maintaining liquidity.
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1. What is the profit for the month when the income is $14,000 and the expenses are
$12,500?
Answers
Answer:
profit =$1,500
Explanation:
profit = revenue - expense
profit = $14,000 - $12,500
profit =$1,500
The profit for the month is $1,500. Profit is defined as the financial benefit realized when revenue from a business activity exceeds expenses.
What is a profit?Profit is the money left over after deducting business expenses. Profit is classified into : gross profit, operating profit, and net profit. The gross profit is the highest. It demonstrates how much money was left over after paying for the goods and services sold.
Profit is defined as the financial benefit realized when revenue from a business activity exceeds expenses.
A profit is the amount of money earned from a specific product or service, which is calculated by deducting costs from sales and establishing the profit margin.
There are four levels of profit or profit margins:
Gross profit.Net profit Pre-tax profit.Operating profit.Profit = Income- expenses
Profit = $14000- $12500
= $1500
Hence, the profit is $1500.
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Is wanting to increase sales over the next year a good objective if (no/yes) write why
Answers
Answer:
Yes because some family's are not doing very good in money so they should be able to afford more items
But also no at the same time because if you have more sales more of your stuff will be out of stock.
Explanation:
what makes recession and recover different?
Answers
The thing that makes recession and recover different is that Economic recovery serves as the business cycle stage which do follow recession .
What is recession and recovery?Recession and recovery can be described as the economuic terms that is been used by the ecconomist whereby the recession can be seen as the period of economic meltdown where there is usually a high inflation of goods as well as services.
It should be noted that the recovery period do follow the reccession which can be described as the sustained period of improving business activity that can happen in a country.
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Joel klippert says he pays himself last, after he pays his vendors and employees. explain this decision in terms of the principle of business profit. do you agree with his payment priorities?
Answers
Answer with Explanation:
Paying employees and the vendors is necessary because they are very important stakeholders of the company. The company must manage its vendors and must not surpass the agreed credit period and credit allowed. If the company is properly managing its vendors then it is most likely that the company will taking maximum benefit out of it by increasing its credit period or credit allowed amount or both. This lower the working capital investment and thus would save the cost of financing the working capital, and hence the business profit would be increased. This means that the effective management of vendors increases business profit.
On the other hand, if we are not paying the employees in time then it will lower the motivation of the employees which would affect their productivity as well. Hence it is better to keep them motivated because it increases it productivity and also lowers employee turnover.
The impact of these decision would might seem that it has decreased the profit but employee cost are both fixed cost (salaried) and variable cost (wages) which means the fixed will remain the same but if the wages are growing then it is a sign of increased production. Hence we must pay them in time irrespective of business profit.