exercise a-15 (algo) investment decision with unknown economic life cervantes company is considering an investment in a new machine. managers at the company are uncertain about the economic life of the machine, because of the speed of innovation in the technology. the machine requires an investment of $3 million. after-tax cash flows are estimated to be $1,132,075 each year the machine is operating (and not obsolete). the company uses a 10 percent discount rate in evaluating capital investments. use exhibit a.9. required: what is the minimum economic life of the machine (in whole years) that would be required for it to have a positive net present value?
Answers
The minimum economic life of the machine required for a positive net present value is 5 years. This means that the machine needs to operate and remain not obsolete for at least 5 years to generate sufficient cash flows to recover the $3 million investment.
To determine the minimum economic life of the machine for a positive net present value (NPV), we need to calculate the present value of the after-tax cash flows for different years until the NPV becomes positive.
Given that the after-tax cash flows are estimated to be $1,132,075 per year, we can use the following formula to calculate the NPV:
NPV = ∑ [Cash Flow / (1 + Discount Rate\()^t\)]
Where t is the number of years.
Using a discount rate of 10% and the given cash flow of $1,132,075, we can calculate the NPV for different years until it becomes positive.
Let's perform the calculations
Year 1:
NPV = $1,132,075 / (1 + 0.10)¹ = $1,029,159.09
Year 2:
NPV = $1,132,075 / (1 + 0.10)² = $935,599.18
Year 3:
NPV = $1,132,075 / (1 + 0.10)³ = $850,544.71
Year 4:
NPV = $1,132,075 / (1 + 0.10)⁴ = $773,222.46
Year 5:
NPV = $1,132,075 / (1 + 0.10)⁵ = $702,935.88
Based on these calculations, the NPV becomes positive in Year 5, where the present value of the cash flows exceeds the $3 million investment. Therefore, the minimum economic life of the machine required for a positive NPV is 5 years.
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Related Questions
1. You have determined that the Product ID attribute is irrelevant, and that you only care about Product Category 1 through 9 . Build a process that does the following: -Selects the Product Name, Product Category, and Price attributes (but not Product ID) -Removes all rows with Product Category =10 Show a screenshot of the Process panel. (You do not need to include the Parameters panel.) 2. Run your process from the previous question. Show a screenshot of the Statistics output in the Results view, with Price expanded (that is, with the histogram and deviation visible for the Price attribute). 3. Change the process to instead include ONLY Product Category 10. Re-run the process. What is the average Price of products in category 10 ? 4. A manager suggests looking at the correlation between Price and Product Category to see how those two attributes are related. Briefly (1-2 sentences), why is that a bad idea?
Answers
1. To build a process that selects the Product Name, Product Category, and Price attributes (but not Product ID) and removes all rows with Product Category =10,
follow the below steps:a. Select the columns to keep (Product Name, Product Category, and Price) and remove the Product ID column.b. Select Filter Rows from the toolbar or right-click menu.c. Drag the Product Category attribute into the filter row. Keep the Keep option and choose 1 through 9, then click OK.d. To remove Product Category 10 rows from the data set, we'll drag the filter to the canvas.
2. The process from the previous question should be run. After that, statistics should be shown with the Price expanded (that is, with the histogram and deviation visible for the Price attribute). The below picture is a screenshot of the Statistics output in the Results view.
3. To change the process to include ONLY Product Category 10 and re-run it, we need to perform the following steps:a. Remove the filter on Product Category that we created previously.b. Use the Filter Rows transformation to remove any rows that aren't Product Category = 10.c. Run the process to get the average price of products in category 10. The screenshot below shows the average price of products in category 10.
4. Correlation between Price and Product Category should not be examined since one is a numeric attribute and the other is a categorical attribute. To check the correlation between two variables, they must both be numeric attributes.
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What is the cost of running the following schedule in Rolling
Stone magazine? 4th cover 12x
-$3,173,700
-$2,538,960
-$2,792,856
-$2,697,648
$2,697,648
Answers
The total cost of the ads is $-16,300,816, or $8,505,516.
the cost of running the following schedule in rolling stone magazine is $-8,505,516.
the prices for the ads are as follows:
* 4th cover 12x = $3,173,700 * 4th cover 12x = $2,538,960
* 4th cover 12x = $2,792,856 * 4th cover 12x = $2,697,648
* 4th cover 12x = $2,697,648
the total cost of the ads is $16,300,816. however, the negative sign in front of the prices indicates that the company is *receiving* money for the ads, not paying for them. to calculate the total cost, you can simply add up the prices of the ads. however, you need to be careful to take into account the negative sign in front of the prices. if you ignore the negative sign, you will calculate the total cost as $16,300,816, which is the total cost if the company were paying for the ads. however, since the company is receiving money for the ads, the total cost is actually $-16,300,816, or $8,505,516.
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Businesses are expected to demonstrate ethical behavior _____.
Answers
Businesses are expected to demonstrate ethical behavior B. even when government regulations do not apply.
Unethical conduct can be defined as movements that might be against social norms or acts which are taken into consideration as unacceptable to the general public. Ethical behavior is the exact opposite of unethical behavior. Moral conduct follows the general public of social norms and such movements are ideal for the general public.
Ethical behavior is simpler for a man or woman than it is for an organization. Businesses have many individuals with differing reviews, values, and ideals. So, the process is to make certain an enterprise is ethical. The solution is—anyone.
Enterprise ethics enhances the law with the aid of outlining suited behaviors beyond government management. Corporations set up business ethics to sell integrity among their personnel and gain consideration from key stakeholders, consisting of buyers and purchasers.
Disclaimer: The question is incomplete. Please read below to find the missing content.
Question: Businesses are expected to demonstrate ethical behavior _____.
A. only when required by government regulation
B. even when government regulations do not apply
C. only when required by a contract
D. except when it conflicts with corporate culture
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What's the answer I need help ASAP!!
Answers
Answer:
B
Explanation:
To be effective, a leader must understand the ________ aspects of the organization such as values, attitudes, and personalities.
Answers
Answer:
informal
Explanation:
The informal aspects are the focus of the interdisciplinary field known as organizational behavior (OB), which is dedicated to better understanding and managing people at work.
The basic aspect of an organization such as values, attitudes and personalities must be understood to become an effective leader.
The basics values also known as core values are what serves as base to an organization structure since inception.
it is important that a leader understand the basics value of the organization such as values, attitudes and personalities to allow him to be effective because they are silent features that are abide to.
Therefore, to be effective as a leader, the basic aspect of an organization such as values, attitudes and personalities must be understood.
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Which of the following is a personal benefit of eaming a college degree?
A. You have more friends.
B. You are more likely to exercise.
C. You have a longer life expectancy.
D. You are more likely to vote for the right candidate.
Answers
Answer:
Option B !!!!! :))
Explanation:
True or False. Liquidity means that your money is tied up and unavailable.
Answers
Answer: True
Explanation:
Notes move in different directions. what refers to the movement of notes
Answers
Answer:
Melodic motion is the quality of movement of a melody, including nearness or farness of successive pitches or notes in a melody. This may be described as conjunct or disjunct, stepwise, skipwise or no movement, respectively.
how long is the grace period for plus loans
Answers
Answer:
ummmmmm I'm not quite sure
When creating a plan for
you would likely ask yourself what expenses you anticipate and what regular debt payments you need to make.
O A. protecting your assets
OB. managing your income
O C. investing
OD. financing
Answers
Answer:
D
Explanation:
In some countries a surgeon can earn 250000 or more each year. A nurse may earn just 40000 in comparison. Suggest three reasons for this differential in earnings.
Answers
Answer: See explanation
Explanation:
The reasons for the difference in wages include:
1. Education and training: A nurse uses about 4-5 years to train to become a nurse while a surgeon uses about 15 years both at medical school and for further training and examination before he or she qualifies as a surgeon. This is a reason for the higher earning of the surgeon.
2. Also, due to the low barriers to entry, there are numerous nurses than surgeons who are few. This affects earnings as well as there are more supply of nurses which brings about a lower income than surgeons who are scarce and highly priced.
3. The skills and experience matters as well and the risks involved in their jobs results in wage difference too.
What is the future value of $6,200 invested for 23 years at 9.25 percent compounded annually? a. $41,009.13 b. $27,890.87 c. $38,991.07 d. $22,483.60 e. $47,433.47
Answers
The future value of $6,200 invested for 23 years at 9.25 percent compounded annually is $47,433.47
The formula for future values is FV= PV (1+r/n) t/n.
PV (Present Value)=$6,200.00
N (Number of Periods)=23.000
I/Y (Interest Rate)=9.250
PMT (Periodic Deposit)=$0.00
Starting Amount=$6,200.00
Total Periodic Deposits=$0.00
Future value is the value of an item or investment as from some point in the future. Alternatively, the future value is the sum amount money that an investment would be valuable, assuming a certain rate of returns after a specific time period (interest rate).
Future value is emphasized by both investors and financial planners because it enables them to predict how much an investment will be valued in the future. Concerning the financial goals, it enables the investors make smart financial decisions. As a result, both enterprises and people need to be aware of the asset's prospective worth.
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What is the lowest credit rating you can get and still be investment worthy?
A.)BBB-
B.)AAA+
C.)C-
Answers
Answer is A.!!!
"You can make the impossible, possible" -Ali
when people purchase health insurance and then change their behavior after the purchase because the insurance protects them from loss, the health insurance market is said to face the problem of
Answers
Moral hazard refers to the situation where an individual's willingness to take risks is increased by the presence of insurance. In the health insurance market, the problem of moral hazard arises.
when people purchase health insurance and then change their behavior after the purchase because the insurance protects them from loss.
The person insured may take on greater risks than they would have done if they were not insured. This results in higher costs for the insurer, which can lead to higher premiums for everyone else. In the case of health insurance, people who are insured may engage in riskier behavior such as smoking, drinking, or overeating, which can increase the likelihood of health problems.
Therefore, the presence of health insurance can lead to an increase in healthcare costs, which is known as the problem of moral hazard in health insurance markets.
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Write one to two paragraphs explaining the importance of the seven marketing functions. Include examples to illustrate your points.
Answers
Answer: See explanation
Explanation:
The seven functions of marketing include:
1. Marketing Information Management: This helps an organization to understand what the customers need. Information can be gathered through the review of market research reports, social media, feedback from sales team.
2. Distribution: An organization's distribution strategy helps the customers to know where to get the product or the company. Marketing helps in the distribution of goods and services to ones customers.
3. Pricing: Pricing plays a role in the success of a particular product. Marketing helps one to be aware of the pricing strategy to use in order to have a competitive edge over ones rivals.
4. Product/Service Management: Marketing is vital for the development of a product as the information gotten from customers can be used to incorporate in new products.
5. Promotion: Through marketing, prospective customers can be made aware of a particular product through promotional activities.
6. Sale - Marketing aids sales as it brings about an increase in the volume of goods sold to the public and also on ways to improve the product through feedbacks.
7. Financing: Successful marketing gives revenue to a business and help in strengthening the loyalty of customers and help in gaining new customers.
What is an example of a composite key in a database table?
O Invoicel
CustomerID
O ProductID
O OrderID + ProductID
Answers
Answer:
The primary key firstName + lastName for students is a composite key.
explain how the looting of shops will affect business in term of the relationship between social responsibility and triple bottom line
Answers
Social responsibility means an acceptable theory which is applies to everyone, expecting that the act of individual must benefit the whole of society.
Corporate Social Responsibility refers to practices and policies undertaken by firms and other business, who are intending to have a positive influence on the environment and world at large.
Triple bottom line is also a concept that state that in addition to the major objectives of firms which is to make profit, they should ensure they impact the society and environment as well.
The looting of shops and mall will take a toll on the moral effort of firms and businesses adhering to the triple bottom line concept as well as the corporate social responsibility as they have to count on the loss incurred, caused by the masses.
Despite that insurance provision and government can provide compensation for the looted goods, still, the morale of the firms authorities and business owners towards the social responsibility concept and triple bottom line concept will be negative
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The shops and malls are considered as safe place for citizens. Whenever there are any crisis in the state, these business activities are stopped for some time and these elective shopping activities are freeze to deal with crisis or natural disaster situation.
In such a situation few people who are robber by nature take advantage of such situation and then exploit the natural disaster. They get their own benefit from the disaster situation.
They know how to deal with crisis and they get benefit from their robbery and looting shops and malls. In this way businessmen looses great money and valuable things from their shops.
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what is bitcoin? group of answer choices a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trustless transactions (blocks) on the distributed ledger or blockchain. a way to validate transactions and achieve the distributed consensus. a type of digital currency in which a record of transactions is maintained, and new units of currency are generated by the computational solution of mathematical problems and which operates independently of a central bank. all of these choices are correct.
Answers
Bitcoin is type of digital currency in which a record of transactions is maintained, and new units of currency are generated by the computational solution of mathematical problems and which operates independently of a central bank.
Bitcoin is a decentralised digital currency that can be transferred on the peer-to-peer bitcoin network.Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin (BTC) is a crypto currency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, and thus removing the need for third-party involvement in financial transactions. It is rewarded to blockchain miners for the work done to verify transactions and can be purchased on several exchanges.
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the common stock of jacey home store sells for $38.42 per share. the stock is expected to pay an annual dividend of $1.80 next year and increase that amount by 4 percent annually thereafter. what is the market rate of return on this stock?
Answers
Option-D "8.69%" is correct.
Calculate the rate of return on the stock using the following formula:
Rate of return Dividend year-1 Current stock price + Growth rate
$1.80 = +0.04
$38.42
= 0.0469+0.04
= 0.0869 or 8.69%
Therefore, the market rate of return on the stock is 8.69%.
In finance, stock (also capital stock) includes all of the shares by way of which possession of a organisation or organisation is split.[1] (specifically in American English, the phrase "stocks" is likewise used to consult stocks.)[1][2] A unmarried share of the inventory approach fractional possession of the business enterprise in proportion to the full range of stocks. This typically entitles the shareholder (stockholder) to that fraction of the company's income, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt),[3] or vote casting energy, frequently dividing these up in share to the quantity of cash every stockholder has invested.
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i. Areogram is used to send written message to
Answers
reasons for looting of shops malls and destruction of property in gauteng and kzn
Answers
Click this link to view the ooh educational information for chefs. according to the ooh, what are some educational, training, certification, or licensing options required or helpful for chefs? check all that apply. apprenticeships work experience in kitchens a master’s degree experience selling products to customers experience with fundraising culinary programs or schools certification
Answers
Answer:
Explanation:
1,2,6,7
According to OOH, the educational, training, certification or licensing needed for chefs are - Apprenticeships, Work experience in kitchens, culinary programs or schools, certification.
For entry into the field, head cooks and chefs normally need a high school graduation and job experience. Some people enroll in a culinary programme at a 4-year university, technical college, or culinary arts school. Others acquire knowledge via apprenticeship schemes.
You need work experience in a commercial kitchen if you want to become a chef. To acquire the finer technical facets of the field, many cooks attend culinary schools or obtain a diploma or associate degree at a community college.
Therefore a chefs needs Apprenticeships, Work experience in kitchens, culinary programs or schools, certification.
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According to the ooh, what are some educational, training, certification, or licensing options required or helpful for chefs? check all that apply.
apprenticeships work experience in kitchens a master’s degree experience selling products to customers experience with fundraising culinary programs or schools certificationnoncash items, nonoperating items, and changes in current assets and liabilities are necessary adjustments to
Answers
Noncash items, nonoperating items, and changes in current assets and liabilities are necessary adjustments to net income
In accounting, noncash objects are monetary gadgets which include depreciation and amortization which can be protected inside the enterprise' internet profits, but which do now not have an effect on the coins go with the flow.
Those non-coins sports may additionally include depreciation and amortization, in addition to obsolescence. Property, plant and gadget resides on the balance sheet. Those items are taken at the earnings assertion in small increments called depreciation or amortization.
They ought to be incorporated within the assertion of coins flows in a phase classified, "Significant Noncash Transactions."
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one from a lesser-known brand.
Which questions should she consider before she buys the jacket? Check all that apply.
Is advertising influencing her?
What are her motivations?
Has she compared prices?
Is she buying at the right time?
Will her sister like the jacket too?
Answers
Answer: Is advertising influencing her?
What are her motivations?
Has she compared prices?
Is she buying at the right time?
Explanation:
The questions that she should consider before she buys the jacket include:
• Is advertising influencing her?
• What are her motivations?
• Has she compared prices?
• Is she buying at the right time?
Before buying the jacket, the question "Will her sister like the jacket too?" shouldn't be considered as she is looking to satisfy her own needs and not that if her sister and in this case, he sister shouldn't have an impact on her buying decision.
Answer:
A, B, C, D
Explanation:
edge2021
13. A rate quote for an individual Line haul. Copy
Load quote
Spot quote
Freight quote
Carrier quote
Answers
Answer:
Spot quote
Explanation:
Intermodal transport can be defined as the transportation of goods in one and the same truck or loading medium without handling the goods themselves in a different transport modes.
A shipping container refers to a metal container made from steel and having the ability or strength to withstand all external factors during shipment or storage of materials. It is an essential part of transportation of goods or materials from one location to another, thereby boosting trade between countries.
The various types of shipping containers are, dry storage container, open-side storage container, ISO Reefer container, flat rack container, tunnel container, open top container, double doors container, thermal containers, intermodal freight container etc.
Basically, the two standard sizes of shipping containers are 20ft (6.06m) and 40ft (12.2m): which has a width of 8ft (2.43m) and height of 8.5ft (2.59m).
A spot quote for a freight refers to a rate quote for each individual Line haul. Thus, this rate is usually calculated using current market parameters without a contract.
This ultimately implies that, the spot rate is generally outside the contracted rates and is typically required to be sent immediately.
If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that amount over 10 years if the funds were deposited in an account earning 3 percent? Use
Answers
The cost of interest is only calculated once a year with annual compounding. This is a unique situation because the claimed yearly percentage rate and the actual annual rate are the same.
What is future value?A financial concept known as future value (FV) assigns a value to an asset based on anticipated factors like future interest rates or cashflows.
We can use the following formula to compute the future value of an annuity with periodic payment M for T periods, given periodic return r :
= M((1+r)^{T} −1) / r
Applying the formula, the future value after 10 years is:
= 500(1+3 % )^{10} - 1 / 3%
= 5,731.94
Therefore, The future value is 5,731.94.
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Statement of financial position is prepared to calculate the profit for the year of the business.
True
False
Answers
When it came to the major Federalist economic programs, Thomas Jefferson as presiden
the excise tax on whiskey.
left practically all of them intact.
the appointment was an attempt by a defeated party to entrench itself in the governmentt
Answers
When it came to the major Federalist economic programs, Thomas Jefferson as president the excise tax on whiskey, which was highly unpopular among farmers in the western regions of the United States. Thus, option A is correct.
Thomas Jefferson, a Democratic-Republican, had a fundamentally different view of government and economics compared to the Federalists. He believed in a smaller federal government with limited powers, and opposed many of the Federalist economic programs.
However, as president, Jefferson did not completely dismantle the Federalist economic system. Jefferson did repeal the excise tax on whiskey, which was highly unpopular among farmers in the western regions of the United States.
However, he left many of the other Federalist economic programs intact, such as the national bank and protective tariffs. Jefferson's approach to the economy was characterized by a commitment to agrarianism, limited government, and free trade.
He believed that a decentralized system of government and a reliance on agriculture would promote individual liberty and economic prosperity. Overall, while Jefferson opposed many of the Federalist economic programs, as president he did not entirely dismantle them.
He made some changes, such as repealing the excise tax on whiskey, but left other programs in place. Jefferson's approach to the economy was based on a commitment to agrarianism, limited government, and free trade. Thus, option A is correct.
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Country a specializes in the production of copper and produces it more efficiently than any other country. It buys wheat, which it produces less efficiently than copper, from country b, even though it produces wheat more efficiently than country b. Which theory of international trade supports country a’s decision to buy wheat from country b?.
Answers
The choice of country a to purchase wheat from country b is supported by Ricardo's theory of comparative advantage, which is the theory of international commerce.
What is the trade theory of Ricardo?Three premises underlie the Ricardian theory of international trade: labor productivities are fixed, there is no cross-border movement of the production factors, and labor is the only production factor. Only the first of these presumptions is acknowledged by Ricardo himself.
According to Ricardo's well-known theory of comparative advantage, countries can gain a competitive advantage in international trade by focusing on producing goods with the lowest opportunity costs compared to those of other countries.
What can we infer about the advantages of free trade from Ricardo's theory of comparative advantage?The foundation of international trade is comparative advantage, which also serves as the basis for the positive economic effects of free trade on nations. According to the comparative advantage concept, trade can still be advantageous to both trading partners even when one country has a clear advantage in producing goods.
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