Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $103,000. The equipment will have an initial cost of $423,000 and have a 5-year life. The salvage value of the equipment is estimated to be $80,000. If the hurdle rate is 12%, what is the approximate net present value

Answers

Answer 1

Answer:

The approximate net present value is $41,005.

Explanation:

Note: See the attached excel file for the calculation of the net present value (in red color).

In the attached excel file, the following are used:

n = The particular year in reference

r = hurdle rate = 12%, or 0.12

The approximate net present value is therefore calculate by adding all the present values in the attached excel file from year 0 to year 6 to obtain $41,005.


Related Questions

Drag each example to the corresponding step in the new-product development process.
1. Idea Generation
2. Concept Testing
3. Product Development
4. Market Testing
5. Product Launch
6. Evaluation of Results
A. Samples
B. Big box
C. Brainstorm
D. Prototypes
E. Strong sales
F. Presentation

Answers

Answer:

1. Idea Generation  ⇒ C. Brainstorm

Brainstorming is a process used to generate a large number of ideas where participating members contribute with any ideas that they can come up with.

2. Concept Testing  ⇒  B. Big box

3. Product Development   ⇒ D. Prototypes

When a company is developing a product, the firs thing that they will come up with is a prototype of the product.

4. Market Testing   ⇒ A. Samples

Free samples are important when you are testing a new product, e.g. handing out free samples

5. Product Launch   ⇒ F. Presentation

The formal presentation of a product takes place when the product is launched into the market.

6. Evaluation of Results  ⇒ E. Strong sales

The way that a company can evaluate if a product was accepted or not by the market is to see their sales records, if sales are strong, then the product was accepted.

The discount rate is the: multiple choice 1 interest rate at which banks can borrow reserves from other banks. lowest interest rate that banks can charge for loans to their most creditworthy customers. lowest interest rate that banks can charge for lending reserves to other banks or financial institutions. interest rate at which banks can borrow reserves from the Federal Reserve. b. If the Fed were to decrease the discount rate, banks will borrow: multiple choice 2 fewer reserves, causing an increase in lending and the money supply. more reserves, causing an increase in lending and the money supply. more reserves, causing a decrease in lending and the money supply. fewer reserves, causing a decrease in lending and the money supply.

Answers

Answer:

a. The discount rate is the

interest rate at which banks can borrow reserves from the Federal Reserve.

The discount rate is the interest rate that the FED charges commercial banks, credit unions, or other financial institutions for lending them money.

b. If the Fed were to decrease the discount rate, banks will borrow

more reserves, causing an increase in lending and the money supply.

Lowering the discount rate is considered part of an expansionary monetary policy since banks will borrow more money and lend more money to the public, increasing the money supply.

A collaborative selling environment makes the sales pitch more challenging for salespeople.
O True
O False

Answers

Answer:

O True

Explanation:

In the case when the selling environment is collaborative so it would make the sales pitch more challenging for the sales people

Here collaborative selling means the collaboration that does not between the sales team members but it would be done between the sales people and the customers

So the given statement is true

Hence, it is not false

Marigold Corp. constructed a building at a cost of $13600000. Weighted-average accumulated expenditures were $5700000, actual interest was $560000, and avoidable interest was $280000. If the salvage value is $1110000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is $326250. $319250. $347000. $461750.

Answers

Answer:

$121,750

Explanation:

Cost of the building = 13600000

Average accumulated expenses = 5700000

Actual interest = 560000

Avoidable interest = 280000

Salvage value = 1110000

Life in years = 40 years

Depreciation expenses for 1st full year = {(Average accumulated expenses + Avoidable interest) - Salvage value} / Life in years

Depreciation expenses for 1st full year = (5700000 + 280000 - 1110000) / 40

Depreciation expenses for 1st full year = 4870000 / 40 years

Depreciation expenses for 1st full year = $121,750

If Jane is not maximizing her utility with the original purchase, remembering the Law of Diminishing Marginal Utility, would she be better off buying one less fries and one more chicken sandwich? Explain your reasoning and show any calculations.

Answers

Answer:

Since Jane's marginal utility per dollar spent is much greater for chicken sandwiches, that means that she is not maximizing her utility by purchasing fries. Instead of buying the third order of fries she should buy another chicken sandwich. The third order of fries only yields 3 utils per dollar. We are not given the exact utils per dollar of the fourth chicken sandwich, but the third one yielded 15 utils per dollar and the marginal decline is not that steep. The important number is the utils per dollar, not the price of the goods.

Other Questions
___ is the process of producing cellular energy in the presence of oxygen. Group of answer choicesaerobicanaerobicglycolysisfermentation Pls help me I have no idea of how to do this Evalute the impact of progressive movement. Betty and Sally are 28 miles apart on a path when they start moving toward each other. Betty runs at a constant speed of 6 miles per hour, and Sally walks at a constant speed of 2 miles per hour. How long does it take until they meet? please help asap no trolls! (05.01)A picture is 5 inches wide and 8 inches tall: A rectangle is shown. The length of the rectangle is labeled 5 inches. The width of the rectangle is labeled 8 inches. A photographer wants to use a scale factor of 2.5 to enlarge a picture. What will the area of the picture be after it is enlarged? 40 in2 250 in2 100 in2 81.9 in2 Why do attackers tend to target public or private Wi-fi networks?Ill mark as brainiest What should be done to both sides of the equation in order to solve n/4 = -12.4?A. Multiply by 4.B. Divide by 4.C. Multiply by -12.4.D. Divide by -12.4. the sum of 1 and y is greater than or equal to 3 . Find the direction cosines of cartesian coordinates (3, -1, 2). Explain in the margin what the technique of "greenwashing" means. Be sure to read the footnote that defines the term. Which of the following are examples of asexual reproduction?Select all that apply. a plece of a cactus falling to the ground, taking root a male and female organism producing offspring together a bacterial cell dividing a bacterial cell sharing a plasmld with a different bacterial cellPlz select all apply, thank you What represents employer to prospective applicants at colleges and job fair? 1. How did mercantilism affect trade? What is industrialist and philanthropist Andrew Carnegie most well known for? mechanizing every stage of textile production contributions in steel manufacturing founding one of the worlds first modern research laboratories patenting more than one thousand inventions Given g(x) = -x 2, find g(-3). Which Country suffered the most economically as a result of World War 1? Meiosis occurs in a series of different phases and creates genetically unique reproductive cells.Which process helps make meiotic cells genetically different and occurs during prophase I, but not during prophase II?fertilizationindependent assortmentcrossing overchromosome replication Please helppppp me with this Sam had 75 pollywog pralines. He wanted to put them in bags of 3. How many bagswill he need?1225330