Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $92,000. The expected rate of return on this tool is 15 percent.   85 percent.   20 percent.   10 percent.

Q: A firm faces the following costs: total cost of capital = $4,000; price paid for labor = $20 per…

A: Given :Total fixed cost = $4000Price paid for labour= $20 per unit price paid for raw materials=…

Q: What is the future value of your house after 30 years? Note. Use formula FV=PV(+r)" to find this…

A: Given   Present value PV = 831,111.59 n= 30 years  Annual growth rate for 30 years is 5% r = 5% We…

Q: A firm decides to pay total dividends of $100,000 in period 1 and $471,000 in period 2. Charlie owns…

A: Given:Total dividends in period 1 (D1) = $100,000.Total dividends in period 2 (D2) =…

Q: Marginal Return on Investment O True Channel Returns by Channel Investment False Investment Level…

A: Marginal returns on investments are the additional return on investment achieved when an additional…

Q: Consider a training program that will result in a worker receiving a one time bonus of $2,900 two…

A: Given future worth = 2900 Time = 2 years Present cost = 2000

Q: I was told that the NPV alpha and IRR alpha is correct. but I was also told that project alpha has a…

A: Given that;Project Alpha: has initial outlay of $10,000Cash flow after 2 years is $12,000Project…

Q: NPV before Tax on the investment is 4,118,050 USD. Calculate the internal rate of return before tax

A: The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of all…

Q: An elite law school will charge you $36,000.00 for your first year of tuition. This is due at the…

A: To calculate the present value of your law school tuition using the aggressive discount rate of…

Q: Low-energy lightbulbs typically cost $3.65, have a life of nine years, and use about $1.75 of…

A: Here we calculate the annual equivalent cost of the following terms , so calculation is as follow-

Q: Effie the entrepreneur takes 1.5 hours to bake a batch of cupcakes and she bakes 300 batches per…

A: Per unit of the cost of production known as average cost, we can calcuate the average cost by…

Q: Rob is considering a new marketing campaign to promote his new widgets. He currently buys his…

A: Return on Investment (ROI) is financial amount that is received on investment after its maturity. It…

Q: Consider an individual who will invest a total of $15,000 in direct and indirect costs for training…

A:

Q: Assume you are an engineer working for a chemical production company. You are on the technical team…

A: A production company, house, studio, or team is a corporation that provides the physical…

Q: assume that you can borrow $175,000 for one year from a local commercial bank A) The bank loan…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Imagine an investor who has money to invest and two alternative investment possibilities, asset A or…

A: Formula: Expected rate of return =( Expected value - Current value) / (Current value) * 100

Q: Assume you are managing a one-year project and have listed the project earned management value as…

A: Cost variance = Earned value - Actual value = $22,000- $$27,000 = -$5000 As cost variance is…

Q: One of the biggest benefits of creating a financial forecast of your company's financial statements…

A: c) The shortfall of projected cash reveals how much outside capital you need

Q: None

A: Step 1: The calculation of the last dividend paid AB1Required rate of return (r )11.50%2Price (P0) $…

Q: Find the value of marginal efficiency of capital if the prospective yield is 781 and the supply…

A: Generally in the given question The value of prospective yield = 781 The value of supply price = 362…

Q: A corporation issues a two-year bond with a coupon of $50and a face value of $1,000. A year later,…

A: Bond valuation involves determining the fair price of a bond by considering factors such as the…

Q: 5) Net Present Value (NPV) analysis: To present and analyse the cash flows generated by the…

A: Net present value is used to find the present value of the future cash flow. NPV=summation (Cash…

Q: per year. The revenue from the oil is $1,500,000 per year and for natural gas the annual revenue is…

A: Total revenue describes the overall income generated by a firm or business from the sale of its…

Q: A firm learns of an investment opportunity that will increase future revenue, two years from now, by…

A: To determine whether the firm should make this investment, we need to calculate the present value of…

Q: Consider a worker who is offered a salary bonus of $2,000 for each of the next two years if he or…

A: Annual bonus for 2 years = 2000 $ Present cost = 3000 $ Time = 2 years

Q: Yakov lives in Montreal and runs a business that sells boats. In an average year, he receives…

A: Answer: Explicit cost: it refers to the payment made to the factor hired or resources purchased from…

Q: Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also,…

A: Given Cost of the machine tool = $80,000 Net additional revenue = $96,000   Return from buying the…

Q: b)    Adagio Corporation has return on equity (ROE) of 20% and its plowback ratio is p.  The ROE and…

A: Given information   ROE = 20% Plowback ratio = p Dividend payout ratio = 1- Plowback ratio…

Q: Does the company have flat earnings or are they on a consistent upwardtrend with good margins?

A: The nature of earnings of a company mainly depends on the quality of the product and the nature of…