lease give solution and answer ASAP Maria is an entrepreneur. With her newly bought machinery, she expects to market 90 pieces of her product at a price of $50000 in each of the first three years. In the succeeding years, on the other hand, years 4 through 8, she is expected to produce 120 pieces of her product at a price of $75000 each year. Given that she has at least 18% return rate annually, calculate the present value of her expected revenue.

lease give solution and answer ASAP Maria is an entrepreneur. With her newly bought machinery, she expects to market 90 pieces of her product at a price of $50000 in each of the first three years. In the succeeding years, on the other hand, years 4 through 8, she is expected to produce 120 pieces of her product at a price of $75000 each year. Given that she has at least 18% return rate annually, calculate the present value of her expected revenue.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

See similar textbooks

Similar questions

Sandra needs to save $46000 over the next 5 years. If she can save $6400 per year and earn an 12% rate of return on an annualized basis, by how much (approximately) will she exceed or fall short of her goal?
Your cousin plans to expand his business and will require $100,000.00 in 6.5 years. The rate of return will be 0.70 percent per month for the first two years. It will go up to 1.00 percent for the rest of the period. Compute the $ amount to set aside today to reach her objective.
Nora is thinking about buying a small business for $100,000. She expects to earn profits of $10,000 per year for 5 years and then sell the business for $115,000 (also at the end of the fifth year). Calculate the IRR for the business. Round your answer to the nearest percent.
Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. (Ignore income taxes in this problem). The data pertaining to her investment opportunity are: (see attached image). Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the annual NET savings?
Albert has told you that one of his goals is to start his own business within three years. He has estimated that he will need $7,000 in five years to get his business off the ground. Based upon your research of historical, moderate investment returns you determine that Albert should reasonably be able to obtain a return of 5.5% per year over this timeframe. 1. How much does Albert need to deposit today in order to achieve this goal? Interest compounds annually on this investment. 2. Based upon Albert's liquidity, does he have enough currently saved to achieve this goal? Based upon your analysis, Albert wonders if it might be better to put money away each month towards this goal instead of making such a lump sum payment. Using the same information:
Becca wants to save $900 per quarter for 3 years towards the purchase of an appliance. She feels that she can earn 5.42% compounded quarterly for this period of time. If she starts immediately, what is the most expensive appliance that she can purchase?
Patricia was receiving rental payments of $2, 000 at the beginning of every month from the tenants of her commercial property. What would be the value of her property in the market if she wants to sell it, assuming a market capitalization rate of 6.50% compounded annually?
Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $6,000 a year for the next 40 years. What would be the future value of these additional earnings based on an annual interest rate of 6 percent?
Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. (Ignore income taxes in this problem). The data pertaining to her investment opportunity are: (see attached image). Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the present value factor you will use for the net annual cash flows? Enter your answer in three decimals.
digital
Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that she will need $20,000 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available?
Maria wants to set aside funds to take an around the world cruise in four years. Maria expects that she will need $26000 for her dream vacation. If she is able to earn 7% per annum on an investment, how much will she need to set aside at the beginning of each year to accumulate sufficient funds?