A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time: Year 1 - $10,000 Year 2 - $10,000 Year 3 - $2,000 Should the company make this investment? What is the net present value at a 7 percent discount rate? Round your answer to two decimal points.

Q: A corporation decides to deposit a fixed payment per quarter into an account earning 9% interest per…

A: A sinking fund can be referred to as a saving account in which a fixed amount is deposited after the…

Q: Calculate the present value of the following cash flows discounted at 14 percent.(5 POİNT) a.…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: he internal rate of return method is used to analyze a $831,500 capital investment Determine a…

A: Internal rate of return is rate on which present value of cash flow is equal to the initial…

Q: Compute the future value of a $175 cash flow for the following combinations of rates and times. (Do…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Assume a company is going to make an investment of $460,000 in a machine and the following are the…

A: Payback period: The time where the cash inflow becomes equal to the cash outflow and after this time…

Q: Assume a company is going to make an investment of $440,000 in a machine and the following are the…

A: Payback period is the period or number of years in which initial investment amount can be recovered…

Q: Calculate the present value of the following cash flows discounted at 14 percent.(5 POİNT) $10,000…

A: 1. COMPOUND INTEREST RATE 14% YEARS 7 PMT (MONTHLY DEPOSIT) 0 FUTURE VALUE $10,000 2.…

Q: What is the present value of a stream of 5 end-of-year annual cash receipts of $1,000 given a…

A: Present Value is the Present Worth of cash inflows to be received by the person in the future…

Q: Assume a company is going to make an investment of $450,000 in a machine and the following are the…

A: Payback period shows the number of years in which the amount invested gets recover.  Given that,…

Q: Three investments cost $7,000 each and have the following cash flows. Rank them on the basis of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: Give typing answer with explanation and conclusion  1) Marigold Corp. will receive $35,000 today…

A: Net Present Value is also called NPV. It is depend upon future cash inflow & outflow from the…

Q: Crane Telecommunications Corp. has made an investment in another company that will guarantee it a…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Compute the future value of a $140 cash flow for the following combinations of rates and times. (Do…

A: Future value(FV) value of current amount at future date that is computed by compounding current…

Q: A corporation decides to deposit a fixed payment per quarter into an account earning 4% interest per…

A: Amount needed at the end of year 7 121000 Period  7 years No of period (Quarterly) 28 Rate of…

Q: assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for the…

A: Introduction: The payback period is nothing but how long it takes to recoup the cost of an…

Q: Consider the O&M costs on a piece of equipment until the end of the eighth year. You purchased a…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was…

A: Working Capital: It is the liquidity level of business to manage day to day business and is…

Q: The initial cost of an investment is $60,000 and the discount rate (cost of capital) is 8%. The…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: what is the present value of this investment?

A: Present Value = C x [1 – [ (1 / 1 + r)^n] / r] Here, C = Cash Flow per period i.e. $21000 r =…

Q: Calculate the present value of the following future cash flows, rounding all calculations to the…

A: Present Value (PV) is a financial concept that calculates the current worth of a future sum of…

Q: are offered the opportunity to invest $95 000 in a business which will yield annual net cash inflows…

A: Net present value is the main technique used in capital budgeting decision making and is the…

Q: he net cash flow diagram of a tradesman's account based on his work is given above. a) According to…

A: Interest Rate: In some cases, like the one you mentioned, interest rates may be factored in to…

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for…

A: Introduction: The net present value of a capital asset is a metric that measures whether or not to…

Q: DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was…

A: Working capital refers to the funds that a company has available for its daily operations. It…

Q: ill in the blank to answer the below. You invested $20,000 at the beginning of the year. At the end…

A: To calculate the return for the year, you would subtract the initial investment from the total cash…

Q: You are contemplating investing some surplus funds and the following options are available: Show…

A: Future value refers to the estimated worth of something at a later point in time. It's commonly used…

Q: You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years. Find…

A: Given Amount of deposit $2500. rate 8.5% for 20 years.

Q: A. Which of the following investments is worth the most to a rational investor, and why? Assume the…

A: Year Cash flow ($) PVF @10% PV of Cash flow ($) 1 $100 0.9091 90.91 2 $500 0.8264 413.20 3…

Q: Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the…

A: Cash payback method: Cash payback period is the expected time period which is required to recover…

Q: Which of the following is the approximate internal rate of return for an investment that costs…

A: Concept used: PV factor will be used to know the internal rate of return of investment.

Q: Suppose that every 2 years beginning 4 years from now you will receive $133 in perpetuity. Assuming…

A: With periodic cost of capital (r), period (n) and periodic payment (PMT), future value (FV) is…

Q: culate IRR on excel for the cash flows of $500 received per year for 3 years for an investment of…

A: The given problem can be solved using IRR function in excel.

Q: Determine the exact simple interest on P5,000 invested for the period from January 15, 1996 to…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: An investor has the opportunity to invest in four new retail stores. The amount that can be invested…

A: Net Present Value or NPV Calculation used to evaluate the investment and financing decisions that…

Q: Calculate the present value of the following cash flows discounted at 14 percent. a. $10,000…

A: Given information: Discounted interest rate is 14%, Future value $10,000, $5,000 and $4,000 received…

Q: Three investments cost $5,500 each and have the following cash flows. Rank them on the basis of…

A: Payback period-It represents the time period required for recovery of the initial investment in the…

Q: A cash flow sequence starts in year 1 at $5,000 and increases by $200 each year through year 10.…

A: present value is the value of the future cash flow discounted to today.

Q: An investment will pay $20,900 at the end of next year for an investment of $20,000 at the start of…

A: Initial investment (I) = $20,000 Cash flow after a year (CF) = $20,900 Interest rate (r) = 0.025 or…

Q: Beyer Company is considering the purchase of an asset for $220,000. It is expected to produce the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: (a) If Pena Company requires a 6% return on its investments, what is the net present value of this…

A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…

Q: Compute the future value of a $135 cash flow for the following combinations of rates and times. (Do…

A: Future value is a financial term that refers to the amount of money an investment will be worth at a…

Q: At the end of that time the equipment will be worthless. Assuming an interest rate of three percent,…

A: Net Present Value (NPV) Net Present Value (NPV) is the value of all future cash flows (positive and…

Q: The NPV of replacing the year-old machine is $ (Round to the nearest dollar.) Should your company…

A: To determine the NPV of replacing the year old machine, we first need to determine the relevant…

Q: assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for…

A: Net present value (NPV) is the difference between the present values of cash inflows and cash…

Q: Suppose an industrial building can be purchased for $2,500,000 and is expected to yield cash flows…

A: Internal rate of return is the rate at which present value of cash inflows is equal to initial…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.