197360The Snedecker Corporation is considering a change in its cash - only policy. The new terms would be net one period. The required return is 2 percent per period. Current Policy New Policy Price per unit $ 65 $ 70 Cost per unit $ 39 $ 39 Unit sales per month 4,000 4,080 Determine the NPV of the new policy. Multiple Choice $93, 698.63 $ 103.561.64 $82.191.78 $32.876.71 $98.630.14
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- [Question text] Syarikat Sinergi is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for one period or net 30. Based on the following information, determine if the switch is advisable. The interest rate is 2.5% per period. CURRENT POLICY NEW POLICY Price per unit RM175 RM175 Cost per unit RM130 RM130 Sales per period in units 1.000 1,100 Select one: A. Yes, the switch should be made because the NPV is RM8,000. B. No, the switch should not be made because the NPV is -RM4,500. C. Yes, the switch should be made because the NPV is RM4,500. D. No, the switch should not be made because the NPV is -RM8,000.L7MACRS Table (numbers are per cents), n = recovery period Yearn 3 n=5 n= 7 n=10 33.33 44.45 14.81 7.41 A piece of equipment has a first cost of $300,000. The company expects to be able to sell it in 9 years for $20,000. What is the book value of the equipment at the end of year 2? 1 2 3 4 7 8 20.00 32.00 19.20 11.52 11.52 5.76 Add your answer Integer, decimal, or E notation allowed 14.29 24,49 17.49 12.49 8.93 8.92 8.93 4,46 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55
- Noneo19 Dabur Limited expected the folowing future cash fiows from the use of equipment End of Year 1 OMR 7500, End of Year 2 OMR 6500, End of Year 3 ed OMR 9200, End of year 4 OMR 8500. The discount rate was determined as 12% The equipment can be sold in the active market for OMR 27,000 d out of with an agent's commission of OMR 2000.The recoverable amount of the equipment shall be ouestion OMR 23,000 None of them OMR 25,000 OMR 21,000E9-13 Computing Four Present Value Problems E LO9-7 On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual interest rate): a. Bought a delivery truck and agreed to pay $60,000 at the end of three years. b. Rented an office building and was given the option of paying $10,000 at the end of each of the next three years or paying $28,000 immediately. c. Established a savings account by depositing a single amount that will increase to $90,000 at the end of seven yearS. d. Decided to deposit a single sum in the bank that will provide 10 equal annual year-end payments of $40,000 to a retired employee (payments starting December 31 of this year). Required (show computations and round to the nearest dollar): Page 507 1. In (a), what is the cost of the truck that should be recorded at the time of purchase? 2. In (b), which option for the office building results in the lowest present value? 3. In (c), what single amount must be deposited in this…
- Tyler, Inc., is considering switching to a new production technology. The cost of the required equipment will be $3,727,533 . The discount rate is 12.86 percent. The cash flows that the firm expects the new technology to generate are as follows. Years CF 0 $(3,727,533) 1–2 0 3–5 $874,667 6–9 $1,546,005 a. Compute the payback and discounted payback periods for the project. b. What is the NPV for the project? Should the firm go ahead with the project? c. What is the IRR, and what would be the decision based on the IRR?Find the What is the cC of initial cost 936,069$, annual costs of 42,230s, and recurring costs every 5 years of 94,1348 at IR 12% per year. "Enter the final value using +/- sign and without the currency." Example: -23.43 OR +23.43Match the following measurements with the terms below: Question 15 options: 12345 cash conversion efficiency ratio 12345 economic ordering quantity 12345 credit terms 12345 net working capital 12345 days of working capital 1. 5.1% 2. 47.2 days 3. 1/10, n/30 4. $200,000 5. 700 units
- Solve using Rate of Return Methodsignment i Dok Int rences Ac Graw Hill Consider the following cash flows: Year 0 1 2 3 Cash Flow -$ 34,000 14, 100 17,600 11,500 a. What is the NPV at a discount rate of zero percent? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. What is the NPV at a discount rate of 8 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the NPV at a discount rate of 18 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Net present value b. Net present value c. Net present value d. Net present value Saved d. What is the NPV at a discount rate of 28 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. O 3 tubi Check my Oct 9 1:0Do not give image format