1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?
2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?
3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.

Answers

Answer 1

Answer:

1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?

payback period = $31,500 / $12,000 = 2.625 years

2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?

using a financial calculator, the IRR = 8%

the IRR is the discount rate that makes a project's NPV = 0

3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.

depreciation per year = ($50,400 - $10,200) / 3 = $13,400

net cash flows:

year 0 = -$50,400cash flow year 1 = $3,400 + $13,400 = $16,800cash flow year 2 = $3,400 + $13,400 = $16,800cash flow year 3 = $3,400 + $13,400 + $10,200 = $27,000

NPV = -$50,400 + $16,800/1.1 + $16,800/1.1² + $27,000/1.1³ = -$50,400 + $49,442.52  = -$957.48


Related Questions

The corporate certificate issued to an investor that has loaned money to the corporation or government is called a:________.

Answers

Answer:

Bond

Explanation:

The bond is a security of debt in which the issuer owes the debt holder and based on the terms and conditions of the bond have the obligation or responsibility to pay them the interest i.e. coupon or to make the repayment of the principal amount at some future date i.e. maturity date. Here the interest could be paid on monthly, semiannual, etc basis

Also the certificate is to be issued to an investor regarding the money loaned to the government

Therefore the above is the answer

The money lost by not working is called

Answers

it's called bankrupt

The revenue cycle is a major cycle for most companies. Accounts receivable, revenue, and other accounts are tested through this cycle. Often there are misstatements found, including errors and/or fraud by the client.
CONCEPT REVIEW: It is important in testing any cycle, especially revenue, to realize that misstatements will occur and to try to distinguish between errors and fraud
1. Many instances of misstatement are based on the inappropriate recognition of_______
2. One way to avoid misstatement of revenue is to ensure the client has proper______
3. Revenues are deemed to be earned when the company has______ what it must do to fulfill its obligation
4. Side______ can substantially alter the terms of a sale.
5. _______ needs to be assured in order to recognize revenue.

Answers

Answer and Explanation:

1. The misstatement would depend on  when there is inappropriate revenue recorded

2. For avoiding the revenue misstatement, the client should have to cut off the policies

3.  The revenues are earned at the time when the company achieved or accomplished for fulfiling its obligation

4.  The side agreements could modify the terms of sales

5. For recording the revenue, the collectibility needs to be confirmed

who is itachi uchiha​

Answers

Answer:

older brother of Sasuke Uchiha and is responsible for killing all the members of their clan, sparing only Sasuke. :)

Explanation:

Answer:

Itachi was a kind-hearted human being by nature but he was FORCED into doing all the horrible acts and to live as a Rogue. It were Danzo and Tobi who played on Itachi's kindness and his love for Sasuke to force him into committing a genocide.

MPA is a very rare auto immune disease that causes antibodies to attack blood cells causing them to bleed as they become damaged and inflamed. MPA also attacks the vital organs of the body and causes bleeding, coughing, and fatigue which Itachi shows throughout the series.

He has incredibly keen battle sense, an uncanny ability to analyze techniques and find their weak spot, he matured his sharingan at an incredibly young age, he's a beast in shuriken jutsu, fire jutsu, and many Uchiha techniques (probably knows Uchiha Reflection), with Tsukuyomi he can bend space and time at a whim.

ITACHI IS MY  SECOND FAVORITE CHARACTER

Explanation:

Explain how the circular flow of income operates making reference to the injections and withdrawals and physical and monetary flows.

Answers

Answer:

It shows flows of goods and services and factors of production between firms and households

The circular flow shows how national income or Gross Domestic Product is calculated

Businesses produce goods and services and in the process of doing so, incomes are generated for factors of production (land, labour, capital and enterprise) – for example wages and salaries going to people in work.

Leakages (withdrawals) from the circular flow

Not all income will flow from households to businesses directly. The circular flow shows that some part of household income will be:

1.Put aside for future spending, i.e. savings (S) in banks accounts and other types of deposit

2.Paid to the government in taxation (T) e.g. income tax and national insurance

3.Spent on foreign-made goods and services, i.e. imports (M) which flow into the economy

Withdrawals are increases in savings, taxes or imports so reducing the circular flow of income and leading to a multiplied contraction of production (output)

Injections into the circular flow are additions to investment, government spending or exports so boosting the circular flow of income leading to a multiplied expansion of output.

Capital spending by firms, i.e. investment expenditure (I) e.g. on new technology

The government, i.e. government expenditure (G) e.g. on the NHS or defence

Overseas consumers buying UK goods and service, i.e. UK export expenditure (X)

An economy is in equilibrium when the rate of injections = the rate of withdrawals from the circular flow.

Building up the model

In this next series of images we build up the circular flow model from just having a domestic sector and then adding in an external sector (exports and imports) before including the financial sector which channels savings and hopefully provides the finance available to fund investment.

The Domestic Circular Flow of Income and Spending

The external sector involves businesses exporting goods and services overseas (X) and consumers and business buying imported products from other countries (M)

Explanation:

PLEASE MARK ME AS BRAINLIEST

When leakage equals injections, the nation's economic cycle is said to be in balance.

What is economic cycle?

The term "economic cycle," usually referred to as a "business cycle," describes the swings in the economy's growth and decline.

The present stage of the economic cycle can be determined using variables like gross domestic product (GDP), interest rates, total employment, and consumer expenditure.

Since the economic cycle directly affects stocks, bonds, profits, and corporate earnings, understanding it can help investors and businesses decide whether to invest and when to withdraw their funds.

An economy travels in a circular motion from expansion to recession and back again, which is referred to as an economic cycle. Growth is a sign of an expanding economy.

Learn more about economic cycle, here

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Retained earnings can be decreased by all of the following except for Group of answer choices stock splits. some disposals of treasury stock. stock dividends. cash dividends.

Answers

Answer:

stock splits.

Explanation:

Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.

The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.

The main purpose of preparing a retained earnings statement is to boost investor's confidence and improve market value.

Retained earnings can be decreased by the following; some disposals of treasury stock, stock dividends, cash dividends except for stock splits.

A stock has an average return of 13.6% and a standard deviation of 8.4%. In any one given year, you have a 95% chance that you will not lose more than _____% nor earn more than ____% if you invest in this security.
a. 5.2% to 22.0%.
b. 3.2% to 30.4%.
c. 3.2% to 30.4%.
d. 5.2% to 22.0%.
e. 13.6% to 38.8%.

Answers

Answer:

options B and C are identical, and they are both right.

b. 3.2% to 30.4%. c. 3.2% to 30.4%.

you have a 95% chance that you will not lose more than 3.2% nor earn more than 30.4% if you invest in this security.

Explanation:

a 95% confidence level represents approximately 2 standard deviations, so the stock could lose up to 13.6% - (2 x 8.4%) = -3.2% in the worse case scenario. You should also be able to earn 13.6% + (2 x 8.4%) = 30.4% in the best case scenario.

On January 2, 2017, Hannah Company sold a machine for $1,000 that it had used for several years. The machine cost $12,000, and had accumulated depreciation of $8,000 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine?

Answers

Answer:

Loss= -$3,000

Explanation:

Giving the following information:

Selling price= $1,000

Purchase price= $12,000

Accumulated depreciation= $8,000

First, we need to calculate the book value:

Book value= 12,000 - 8,000= $4,000

If the book value is higher than the selling price, the company loses from the sale:

Gain/loss= selling price -  book value

Gain/loss= 1,000 - 4,000

Loss= -$3,000

Brian Inc. borrowed $8,000 from First Bank and signed a promissory note. What entry should Brian Inc. record?

Answers

Answer:

Dr Notes Receivable $8,000

Cr Cash $8,000

Explanation:

Based on the information given we were told that Brian Inc. borrowed the amount of $8,000 from First Bank in which they signed a promissory note which means that the journal entry that Brian Inc. should record the transaction is :

Dr Notes Receivable $8,000

Cr Cash $8,000

If you decide not to spend $1,000 you earned at your summer job but instead intend to buy shares in a mutual fund, in terms of aggregate economic accounting you would be:_______.
A) consuming.
B) saving.
C) investing.
D) transferring.

Answers

Answer:

B)saving

Explanation:

Savings in accounting can be regarded as the amount that remains when the

individual's consumer spending is removed from disposable income that is earned by a consumer at a particular iperiod of time. For instance you decide not to spend $1,000 you earned at your summer job but instead intend to buy shares in a mutual fund, in terms of aggregate economic accounting you would be saving.

If you become nervous in an interview and lose your train of thought, you should _____.

just keep talking
pause and take a deep breath
laugh it off
ask for a glass of water

Answers

Explanation:

pause and take a deep breath

Pause and take a deep breath

Piper Pipes has the following inventory data: July 1 Beginning inventory 20 units at $120 5 Purchases 120 units at $112 14 Sale 80 units 21 Purchases 60 units at $115 30 Sale 56 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a LIFO basis?
a. $15,392.
b. $15,412.
c. $7,328.
d. $7,348.

Answers

Answer:

COGS= $15,412

Explanation:

Giving the following information:

July 1 Beginning inventory 20 units at $120

July 5 Purchases 120 units at $112

July 14 Sale 80 units

July 21 Purchases 60 units at $115

July 30 Sale 56 units

First, we need to calculate the number of units sold:

Units sold= 136

To calculate the cost of goods sold using LIFO (last-in, first-out), we need to use the cost of the last units incorporated into inventory:

COGS= 60*115 + 76*112

COGS= $15,412

Stockholders have residual claim on all assets after debt is paid and therefore have ____ risk than bondholders.
a) equal
b) higher
c) lower

Answers

Answer:

b) higher

Explanation:

As we know that the bondholders would be have more priority as compared with the shareholders either they have high risk as compared with the bond holders

So as per the given situation, in the case when the stockholder has the residual claim on all the assets after the payment of debt. This leads to high risk as compared with the bondholders

Therefore the correct option is B.

Which activity does the IRS allow nonprofit organizations to engage in?

advertising tax deductions for donations
compensating business owners based on profits
selling pharmaceuticals if it is a healthcare organization
increasing the value of shareholder’s investments

Will give brainliest to correct answer!

Answers

Answer: advertising tax deductions for donations

Explanation:

The activity does the IRS allow nonprofit organizations to engage in is

advertising tax deductions for donations.

What is IRS?

It stands for Internal revenue service that administered the federal tax laws. In this, it contains the processing of tax return, tax payer service, and the enforcement.

So based on this, we can say that The activity does the IRS allow nonprofit organizations to engage in is advertising tax deductions for donations.

learn more about revenue here: https://brainly.com/question/24506060

At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock price at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)

Answers

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.

Hsu Company reported the following on its income statement:
Income before income taxes $300,441
Income tax expense 90,132
Net income $210,309
An analysis of the income statement revealed that interest expense was $73,659. Determine Hsu Company's times interest earned ratio.
a. 2.86 times
b. 4.08 times
c. 1.86 times
d. 5.08 times

Answers

Answer:

d. 5.08 times

Explanation:

The computation of the times interest earned ratio is as follows

Times interest earned ratio is

= (Interest expense + Income before income taxes) ÷ (Interest expense)

= ($73,659 + 300,441) ÷ ($73,659)

= 5.08 times

hence, the correct option is d.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Question 3 of 10
When a nation's standards of financial reporting are transparent and effective:
OA. citizens tend to have greater confidence in the economy.
B. businesses are unable to foster good relationships with
customers
DC. businesses in the country tend to lose profits and resources.
OD. the country's laws can be more easily violated.

Answers

Answer:

A. citizens tend to have greater confidence in the economy.

Explanation:

When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.

This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy

MCDONALDS GIVE DIRECTIONS

Answers

Answer:

TAKE A LEFT

Explanation:

ON 123 SESAME STREET

yessssssssssssssssssssssss

Question 10 of 10
Harland just got his second major credit card, so his credit score rose from
671 to 711. According to the following table for a $150,000 mortgage, how
much less per year would Harland have to pay on a $150,000 mortgage with
the new credit score?
FICO
score
720-850
Interest
rate
5.59%
Monthly
payment
$860
700-719
5.71%
$872
$924
675-699
6.25%
7.40%
620-674
560-619
500-559
8.53%
$1039
$1157
$1238
9.29%

Answers

Answer: 2004

Explanation:

Superfine Company collected the following data in preparing its cash flow statement for the year ended December 31, 2017: Amortization of bond discount $ 1,000 Dividends declared 22,500 Dividends paid 19,000 Gain on sale of equipment 3,000 Proceeds from the sale of equipment 5,000 Proceeds from the sale of treasury stock (carrying amount $32,500) 37,500 Purchase of BAS Inc. bonds (par value $100,000) 90,000 Required: Determine the following amounts that should be reported in Superfine’s 2017 statement of cash flows. What amount should Superfine report as net cash used in investing activities? What amount should Superfine report as net cash provided by financing activities?

Answers

Answer: a. ($85,000) ; b. $18500

Explanation:

a. What amount should Superfine report as net cash used in investing activities?

Sale of equipment = $5,000

Less: Purchase of bond = ($90,000)

Net cash used in investing activities = ($85,000)

b. What amount should Superfine report as net cash provided by financing activities?

Proceeds from treasury sold = $37500

Less: Dividend paid = ($19,000)

Net cash provided by financing activities will be: = $18500

Company Earnings per Share Market Value per Share
Hilton $ 12.00 $ 176.40
SPG 10.00 96.00
Hyatt 7.50 93.75
Accor 50.00 250.00
Compute the price-earnings ratio for each of these four separate companies.
Price-Earnings Ratio
Company Choose Numerator: Divided by Choose Denominator: Price-Earnings Ratio Price-earnings ratio
Hilton
SPG
Hyatt
Accor

Answers

Answer:

Price-Earnings Ratio = Market Value Per Share / EPS

Hilton  Price-Earnings Ratio = 176.40 / 12

Hilton  Price-Earnings Ratio = $14.7

SPG  Price-Earnings Ratio = 96.00 / 10.00

SPG  Price-Earnings Ratio =  $9.6

Hyatt  Price-Earnings Ratio = 83.75 / 7.50

Hyatt  Price-Earnings Ratio = $12.5

Accor Price-Earnings Ratio = 250.00 / 50.00

Accor Price-Earnings Ratio = $5.0

A recipe for macaroni and cheese calls for 18 ounces of cheddar cheese to make 32 four-ounce portions. How much would cheddar would be needed to produce 40 eight-ounce portions?

Answers

Answer: 45 ounces of cheddar cheese is required to make 40 eight-ounce portions.

Explanation:

To find : Quantity of cheddar cheese required to make 40 eight-ounce portions.

Given: Quantity of cheddar cheese required to make 32 four-ounce portions. = 18 ounces

⇒  Quantity of cheddar cheese required to make 1 four-ounce portions. = [tex]\dfrac{18}{32}[/tex] ounces.

⇒  Quantity of cheddar cheese required to make 1 eight-ounce portions. = [tex]2\times \dfrac{18}{32}[/tex] ounces.

[tex]=\dfrac{18}{16}[/tex] ounces.

⇒  Quantity of cheddar cheese required to make 40 eight-ounce portions =

[tex]40\times\dfrac{18}{16}=45[/tex]

Hence, 45 ounces of cheddar cheese is required to make 40 eight-ounce portions.

EASY ANSWER
You should plan to arrive _____ minutes early for an interview.

fifteen
ten
twenty
five

Answers

Answer:

10 or 15 bc of my mom

Explanation:

Answer:

Fifteen

Explanation:

Match each type of Information system with its description.

Answers

Explanation:

knowledge-based interactive system: ⇒ decision support systemsoperational level system: ⇒  transaction processing systemstrategic-level information: ⇒ executive information system.Internal information flow-based system: ⇒ management information system

Typically, knowledge-based interactive systems are used to support the decision-making processes of an organization, by providing the wealth of knowledge found in human resources.

Operational-level systems: among the many functions of operation level systems is that they help in tracking the transactions occurring within and outside the organization, such as the purchases made, etc.

An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the following is one of those sources?

Answers

Answer:

The right approach is "The rigidity of rules and regulations".

Explanation:

Laws, as well as regulations throughout the red tape, are also rigid as well as unyielding. Clear, simple to comprehend. Because once we speak about administrative management, there have been many disadvantages to something like the mere implementation of that kind of principle to administer any organization.

Maybe that's why the aforementioned is indeed the easiest alternative.

Starbucks wants to use the subjective approach to evaluate a new project. They are considering expanding their stores and renting office space to small business owners. They will have a separate reception area and online scheduling for those that want to use the office space. Starbucks has a WACC of 12%. What would be the WACC for this new project?
Category Examples Adjustment Factor
High risk New products 6%
Moderate risk Cost savings,
Expansion of existing products 0
Low risk Replacement of existing
equipment (4)
Mandatory Safety equipment n/a
Multiple Choice
A) 16%.
B) 12%.
C) 24%.
D) 18%.
E) It cannot be determined.

Answers

Answer:

D) 18%.

Explanation:

The WACC for this new project = Current WACC + Adjustment Factor (High Risk)

WACC for this new project = 12% + 6%

WACC for this new project = 18%

Note: Attached as picture shows the reason for the chosen Adjustment factor

I am trying to convince my dad to let me be Interior Designer. What are some resons for me to become a Interior Designer?

Answers

Answer:

Explanation:

1 You can manage your time according your scheduled projects.

2 You can have a lot of costumers around the world

3 It is a profitable niche if you are skilled.

4 Your brain always gonna be creative and curious.

5. You can travel around the world with your knowledge.

6. If you are a good one, you maybe have a lot of followers in your networks liking your work.

7 And if really is your passion job, you will be happy in your life.

Best regards

Investors tend to focus on the bottom line when conducting financial analyses. Thus far, you have calculated earning; per share (EPS) as the net income available to common shareholders divided by the number of common shares outstanding. However, when firms use a lot of hybrid securities, their earnings can be distorted. As a result, a few different methods exist for reporting EPS. Primary EPS is the EPS found after adjusting for the number of shares that are likely to be issued from convertibles and warrants.
Read the following statement, which describes one of these reporting methods:
Earnings per share are found based on the assumption that all convertibles and warrants are exercised rather than trying to estimate how many of them are likely to be exercised. Identify which of the reporting methods this statement describes:
A. Diluted EPS.
B. Basic EPS.
C. Primary EPS.

Answers

Answer:

The reporting method described by the statement is:

A. Diluted EPS.

Explanation:

Diluted EPS gauges the quality of a company's earnings per share (EPS) as if all convertible securities were exercised.  Convertible securities include the company's outstanding convertible preferred shares, convertible debentures, stock options, and warrants.  The diluted EPS is different from the basic EPS (otherwise called the Primary EPS).  The basic EPS measures the company's earnings per common share without considering any outstanding convertible securities.

The FICA (social security) tax is a matching tax with a portion paid by both the employer and the employee.
A. True
B. False

Answers

Answer:

A) true

Explanation:

FICA Tax can be regarded as matching tax, it is been paid by the employees and employers at equal rate. The tax can be divided into Social Security tax as well as Medicare tax. It shouldbe noted the FICA (social security) tax is a matching tax with a portion paid by both the employer and the employee.

Payb- Based on the information below, calculate the payback period. (4 points) Show and label your work. Investment $700,000 Required rate of return 12% Depreciation method Straight Line Useful life 5 years Residual value $20,000 Estimated net cash inflows per year for five years $150,000 2. Based on your answer in part 1, would you accept or reject this project? Why?

Answers

Answer:

4.7 years

The project would be accepted because the amount invested in the project would be recovered within the useful life

Explanation:

Payback period is the time it takes to recover the amount invested in a project from its cumulative cash flows

Payback period = amount invested / cash flows

$700,000 / $150,000 = 4.7 years

The project would be accepted because the amount invested in the project would be recovered within the useful life

Other Questions
Welches Auto ist das Beste?In this activity, you will research various car features and write a paragraph in German comparing and contrasting three cars. Submit your response to your teacher by way of the drop box.Francisco wants to buy a car and is evaluating his options. Research online about the car buying process and the features of the cars Francisco is considering. You will need to know what to look for when evaluating cars for purchase. Then, write a short paragraph in German comparing and contrasting the three cars. Use the adjectives, numbers (for prices), and comparatives and superlatives that youve learned. what is the solution of the following? *-4 = 16Infinite solutionsno solution True or false: The Declaration of Independence marked the beginning of the American Revolution. Ally's tricycle has two different wheel sizes: one larger wheel and two smaller wheels. As Ally travels the distance between her house and her neighbor's house on the tricycle, the larger wheel revolves 10 times and each of the smaller wheels revolve 25 times. If half the circumference of the larger wheel is 5 inches more than the circumference of one of the smaller wheels, what is the distance, in inches, traveled by the tricycle between Ally's house and her neighbor's house? The distance between(-12,-9) and (12,-9) A retailer marks up their furniture 33% over wholesale prices. If a dresser costs $975 wholesale, what does the retailer charge? The perimeter of a rectangle,p, is given by p =2L + 2W , where L is its length and w is its width what is the perimeter of a rectangle of length 15ft and width 15ft ? What is an inference?Question 2 options:The message of the story that the author wants the reader to learn.Factual information from the story.A guess or conclusion based on evidence and clues in the story.What the characters say or do in a text. Solve the proportion: Write the slope intercept form equation of the line when m =-1 and b =-2 (write your answer with no spaces and any fraction with /) A sled is moving down a steep hill. The mass of the sled is 50 kg and the net force acting on it is 20 N. What must be done to find the acceleration of the sled? more points idk(o-o) Question 3 PLZ HELP ASAPChoose the answer.Which meaning does the abbreviation C/C represent?a. chief complaintb. complains ofc. continued. with Which pattern can we use to factor the expression? (x-1)2+(x-1)+4 distribute -14(-8y-11z) pls !! 30. Is the listed activity aerobic or anaerobic? Lifting weightsAerobicAnaerobic a.What is the primary mission of the Orbital Debris Observatory?It is used as part of our national security to listen in on communication.b. It is used to make three-dimensional models of the galaxies.It locates spy satellites and decodes secret military languages.d. It locates old satellites, lost equipment, and space-related garbage.C. what is the sum of four consecutive odd numbers is 80? define the term diffusion in your own words When the partial pressure of O2 in venous blood is 30 Torr, the saturation of myoglobin with O2 is _______, while the saturation of hemoglobin with O2 is ______.