(Net present value calculation) Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $9,000,000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to$2,000,000 per year for each of the next 9 years. In year 9 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $0.8 million. Thus, in year 9 the investment cash inflow totals $2,800,000. Calculate the project's NPV using a discount rate of 6percent.If the discount rate is 6 percent, then the project's NPV is $. (Round to the nearest dollar.)C

Answered: Image /qna-images/answer/aec153a1-cd29-4648-8bf8-40bb1eba35db.jpg

Answered: et present value calculation) Carson…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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You are considering making a movie. The movie is expected to cost $10.7 million upfront and take a year to make. After that, it is expected to make $4.4 million in the first year it is released (end of year 2) and $1.7 million for the following 4 years (end of years 3 through 6). What is the payback period of this investment? If you require a payback period of 2 years, will you make the movie? Does the movie have positive NPV if the cost of capital is 10.3%? C... The payback period is 5.70588 years. (Round up to the nearest integer.) Based on the payback period requirement, would you make this movie? No If the cost of capital is 10.3%, the NPV is $ million. (Round to three decimal places.) (Select from the drop-down menu.) ▸
Bose International Inc. had total revenue of $92,150 last year. Its total variable costs and fixed costs for the period were $22,850 and $22,700, respectively. Compute the break-even point in sales dollars. Sales at Break-even: $ (Round off to the nearest cent)
A manufacturer’s contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the two separate cases below. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costs impact. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500 Use the table below to figure out the Sales, Variable Cost, Contribution Margin, Fixed Cost, and Income (loss) of each question.
If a company has excess capacity, it is contemplating whether a special order should be accepted. The order will not impact regular sales. If the company accepts the special order, what will occur? O Both fixed and variable costs will increase. Net income will increase if the special sales price per unit exceeds the unit variable costs. There are no incremental revenues. Incremental costs will not be affected.
how do you solve a depreciation problem?
A surfboard manufacturer lost $500,000 last year during a recession. Total revenue was $5,000,000 and total variable costs were 40% of sales. The production facility ran at 50% capacity. The production manager wants to know the following: a. What is the percent capacity required to break even? b. When the economy recovers this year, if the plant runs at 100% capacity what net income could the company realize? c. There is a possibility that sales could be so strong this year that the plant may be required to run at 120% capacity by offering a lot of overtime to its production workers. This would result in total variable costs rising by 35%. On a strictly financial basis, should the production manager plan to exceed capacity or should he advise top management to freeze production at 100% capacity? Justify your answer. Answer Solution- 9a. 58.3% 9b. $2,500,000 9c. $3,100,000
A dealership advertises a sale price of $45 899 (including taxes) for a new truck. The salesman offers Darrel two options • Option 1: Lease o down payment of $5000 o monthly payments of $577.50 (including taxes) for 4 years o residual value of $15 000 after 4 years o allowable limit of 20 000 km/year and $0.15 for each additional kilometre Option 2: Purchase down payment of $5000 o loan with monthly payments, compounded monthly for 4 years at an annual rate of 4.9% a) Darrel estimates that he will drive 30 000 km/year. If he chooses Option 1, how much will he pay in total if he returns the truck at the end of the lease? b) What will be the total price of the truck, including the down payment, if Darrel decides to purchase it according to Option 2?
What would Jeremy's taxable income be if he were to choose a standard deduction of $5700 instead of itemizing his deductions? Would it be higher or lower?

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