Axis Corp. is studying two mutually exclusive projects. Project Kelvin involves an overhaul of the existing system; it will cost $53,500 and generate cash inflows of $24,500 per year for the next 3 years. Project Thompson replaces the existing system; it will cost $265,000 and generate cash inflows of $60,000 per year for 6 years. Using a(n) 8.58% cost of capital, calculate each project's NPV, and make a recommendation based on your findings.
The NPV of project Kelvin is $___________ (Round to the nearest cent.)
Answers
The Net Present Value (NPV) is a financial metric used to determine the profitability of an investment project. The NPV will give us the final numerical value, which in this case is $16,317.95
In this case, we have two mutually exclusive projects, Kelvin and Thompson, with different initial costs and cash inflows over a specific period. By calculating the Net Present Value for each project using an 8.58% cost of capital, we can evaluate their profitability and make a recommendation.
To calculate the NPV for Project Kelvin, we need to discount the future cash inflows to their present value and subtract the initial cost.
The cash inflows for Kelvin are $24,500 per year for 3 years, and the cost of capital is 8.58%. Using a financial calculator or spreadsheet, we can calculate the NPV as follows:
NPV = -Initial Cost + (Cash Inflow Year 1 / (1 + Cost of Capital)^1) + (Cash Inflow Year 2 / (1 + Cost of Capital)^2) + (Cash Inflow Year 3 / (1 + Cost of Capital)^3)
Substituting the values:
NPV = -$53,500 + ($24,500 / (1 + 0.0858)^1) + ($24,500 / (1 + 0.0858)^2) + ($24,500 / (1 + 0.0858)^3)
Calculating the NPV will give us the final numerical value, which in this case is $16,317.95 (rounded to the nearest cent).
Based on the NPV calculation, if the cost of capital is 8.58%, the NPV for Project Kelvin is $16,317.95. A positive NPV indicates that the project's present value of cash inflows exceeds the initial cost, suggesting that Project Kelvin is expected to be profitable.
However, to make a comprehensive recommendation, it is necessary to compare the NPV of Project Kelvin with that of Project Thompson and consider other factors such as the company's goals, risk tolerance, and strategic fit.
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Related Questions
assume that methodist hospital has annual fixed costs of $50,000,000 and a variable cost rate of $200 per inpatient day. what is the average cost per patient day at an annual volume of 50,000 patient days?
Answers
The average cost per patient day at an annual volume of 50,000 patient days is $1,200.
How to determine the average costTo calculate the average cost per patient day at an annual volume of 50,000 patient days, we need to use the following formula:
Average Cost per Patient Day = (Total Fixed Costs + Total Variable Costs) / Total Patient Days
Total Fixed Costs are given as $50,000,000.
Total Variable Costs can be calculated by multiplying the variable cost rate per inpatient day ($200) by the number of patient days (50,000), as follows:
Total Variable Costs = Variable Cost Rate per Inpatient Day x Total Patient Days
= $200 x 50,000
= $10,000,000
Total Patient Days are given as 50,000.
Now, we can substitute these values into the formula to find the average cost per patient day:
Average Cost per Patient Day = (Total Fixed Costs + Total Variable Costs) / Total Patient Days
= ($50,000,000 + $10,000,000) / 50,000
= $1,200
Therefore, the average cost per patient day at an annual volume of 50,000 patient days is $1,200.
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an annuity is 20 payments of $200 paid semiannually. interest is 12% compounded semiannually. find the value: a. 6 months before the 1st payment. b. at the last payment. c. at the 1st payment. d. 1 year after the last payment. e. at the 12th payment. f. 2 years 6 months before the 1st payment.
Answers
The present value of the annuity is $3009.26, the future value of the annuity is $30,952.39, the present value at the time of the first payment, in this case, is $3189.81, and the future value after 1 year of the last payment is $34,778.11.
a) Calculation of the present value of the annuity
Present value = Periodic deposit[1 - (1 + rate/no.of compounding)^no.of payment * no.of compounding]/rate/no. of compounding
=$200[1 + (0.12/2)^-20 × 2]/0.12/2
=$200[1 + 0.06]^ - 40/0.06
= $3009.26
b) Calculation of the future value of the annuity
Future value = Periodic deposit[(1 + periodic rate)^no.of the period - 1/rate per period]
= $200[(1 + 0.06)^40 - 1/0.06]
= $30,952.39
c) Calculation of present value at the time of first payment
In this case, we pay will be considered an annuity due rather than an ordinary annuity. The calculation is as follows
Present value = Periodic deposit + Periodic deposit[1 + (1 + rate per period)^-(no.of period - 1)]/rate per period
= $200 + $200[1 + (1 + 0.06)^-(40 - 1)]/0.06]
= $3189.81
d) Calculation of future value after 1 year of the last payment
Future value = Value at the end of last payment(1 + rate/no.of compounding)^no.of compounding × years
= $30,952.39(1 + 0.12/2)^2 × 1
= $34,778.11
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the metrics used to evaluate a firm vary depending on the level of the organization at which the decision is made, and the corpora consciousness of the firm the profit realized quizlet
Answers
The metrics used to evaluate a firm can vary depending on the level of the organization at which the decision is made and the corporate consciousness of the firm. These metrics are used to assess the firm's performance and can be financial or non-financial in nature. Let's break down the answer step-by-step:
Level of the organization: Different levels within a firm may have different objectives and responsibilities. For example, at the operational level, metrics such as production efficiency, cost per unit, or employee productivity may be used to evaluate the firm's performance. At the strategic level, metrics like market share, customer satisfaction, or brand reputation may be more relevant.
Corporate consciousness: This refers to the firm's awareness of its impact on society and the environment. Metrics related to corporate social responsibility, sustainability, or ethical practices may be considered when evaluating a firm's performance from this perspective. Financial metrics: These metrics assess the firm's financial health and profitability. Examples include revenue growth, net profit margin, return on investment, or cash flow.
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The President of the Mount Pleasant Student Council met with the
members and planned a fund-raising fair. In order for this occasion to
materialize successfully the President has given the Vice-President and
Committee Chairman special duties to perform. This procedure is referred
to as
O delegating
O directing
o controlling
Omotivating
Answers
Answer:
Directing
Explanation:
Directing is the function of managers or the authority to issue instructions and guidance to subordinates and oversee their implementation. The management guides and inspires the other members towards achieving the set organizational goals. Directing is providing leadership to junior members of the organization.
The President of the Mount Pleasant Student Council is directing the members to ensure a successful event.
2) suppose a ten-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74. a) what is the bond's yield to maturity (expressed as an apr with semiannual compounding)? b) if the bond's yield to maturity changes to 9% apr, what will the bond's price be?
Answers
The bond's YTM increases to 9% APR with semiannual compounding, its price will decrease to $941.47.
To find the bond's yield to maturity (YTM), we can use the present value formula and solve for the discount rate (YTM) that makes the present value of the bond's future cash flows equal to its current price:
The bond's YTM increases to 9% APR with semiannual compounding, its price will decrease to $941.47.
a) PV = \((C / (1+r/2)^{n} ) + (C / (1+r/2)^{n-1} ) +.... + (C + FV / (1+r/2)^{n-1} )\)
PV =1034.74
b) price= \((40 / (1+0.09/2)^{1} ) + (40 / (1+0.09/2)^{2} ) +.... + (40 + 1000 / (1+0.09/2)^{0} )\)
Price = $941.47
Thus, if the bond's YTM increases to 9% APR with semiannual compounding, its price will decrease to $941.47.
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Give an overview of the Key Performance Indicators (KPI) that your organisation uses in evaluating the performance of its suppliers
Answers
These Key Performance Indicators (KPIs) may vary based on the industry, organizational goals, and specific supplier relationships. Some commonly used KPIs in supplier performance evaluation are on-time delivery, quality performance, and financial stability.
On-time Delivery: This KPI measures the supplier's ability to deliver goods or services according to the agreed-upon schedule.
Quality Performance: This KPI evaluates the quality of the products or services provided by the supplier.
Financial Stability: This KPI assesses the financial health and stability of the supplier.
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Design database for a credit department of bank where the bank has multiple branches in different cities along with their assets. The bank has a list of the clients and their loans. Each loan has a deposit?
Answers
The database for the credit department of the bank would include the following entities: Branch, Client, Loan, and Deposit. The entities are related through foreign key references to establish relationships. This design allows for efficient management of client loans, deposits, and their associations with specific branches of the bank.
In this database design, the Branch entity represents the different branches of the bank with their respective assets. The Client entity stores information about bank clients. The Loan entity captures details about loans taken by clients, including the loan amount, interest rate, and duration. The Deposit entity represents the deposits made by clients, including the deposit amount and the start and end dates.
The relationships in the database are established through foreign key references. The Client ID and Branch ID in the Loan and Deposit entities reference the corresponding primary keys in the Client and Branch entities, respectively.
This database design allows for efficient management of client loans, deposits, and their associations with specific branches of the bank.
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Describe a situation in which a person allowed a stereotype related to age to affect something that was said or done. The situation can be a real one you have witnessed or one you have read about or seen on TV.
Answers
A situation where a person has allowed an age-related stereotype to affect something that was said or done could be a woman struggling to enter the workforce because of her age.
What is ageism?It corresponds to a type of prejudice existing in society, where the individual is negatively characterized according to her age, and this can affect both social and professional life.
Therefore, all forms of prejudice must be extinguished, be it racial, gender or age prejudice, as is the case with ageism, because every individual must be respected as he is.
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With reference to high-technology industries, which of the following statements is true about technical standards? They emerge because there are economic benefits associated with them. They cause compatibility problems between products and their complements. They often result in higher production costs. They can create a lot of confusion in the minds of consumers. They increase the risks associated with supplying complemeitary products.
Answers
Technical standards in high-technology industries emerge due to associated economic benefits, promoting interoperability, reducing production costs, and driving innovation and market growth.
The statement that is true about technical standards in high-technology industries is that "they emerge because there are economic benefits associated with them.
Technical standards play a crucial role in promoting interoperability and compatibility among products within an industry. They help establish common guidelines, specifications, and protocols that enable seamless communication and integration between different products and technologies.
By setting uniform standards, companies can achieve economies of scale, reduce production costs, and enhance efficiency in the development and adoption of new technologies.
Technical standards facilitate innovation, encourage competition, and drive market growth by enabling a broader range of products to work together effectively.
While compatibility issues and confusion may arise during transitions to new standards, overall, technical standards serve as a foundation for progress and economic benefits in high-technology industries.
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At what rate per cent per annum will 4000 yield an interest of 410 in 2 years?
Answers
Answer:
5%
Explanation:
The applicable formula is A = P( 1 + r) ^ n
where A= amount: P is the principal, r, interest rate, n time
In this case,
A = principal + interest = Rs 410 { Rs 4000 + Rs410}
P= Rs 4000
r= ?
n= 2
r is?
4410 = 4000(1 + r) ^2
(1 + i)^ 2 = 4410/4000
(1 + i)^ 2 = 1.1025
1 + i = √1.1025
1 + i = 1.05
i = 1.05 - 1
i = 0.05
0.05 × 100 = 5%
How much is $60 dollars in pounds?
Answers
With a current conversion rate of 0.8083, 60 dollars USD equals 48.50 GBP (British Pounds).
What is the name of a dollar?A "buck" or "single" is the term used to describe the $1 bill. The $2 bill, which is infrequently used, is frequently called the "deuce," "Tom," or "Jefferson" (after Thomas Jefferson). The dollar is a currency used by more than 20 nations. The United States dollar, which was established in 1792 and named after the local currency known as the Spanish dollar, was the first still-existing currency with such a name. The Australian dollar, the Brunei dollar, the Canadian dollar, the Eastern Caribbean dollar, the Hong Kong dollar, the Jamaican dollar, the Liberian dollar, the Namibian dollar, the New Taiwan dollar, the New Zealand dollar, the Singapore dollar, and the Trinidad and Tobago dollar are just a few additional currencies.
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please help!!!!!!!!!!!
Answers
Answer:
(1) Customers rating a new car model on social media - External info
(2) Company info
(3) External info
(4) Company info
Explanation: Company information is basically explaining information abt the product or what it is they're selling. External information is the feedback or in other terms "review" on a companies item. Hope this helped <3
(The #'s are the examples in the boxes starting from left to right btw)
The effect acids have on most metals is called _____.
dehydration coating corrosion ionization Automobile batteries contain _____. sulfuric acid hydrochloric acid acetic acid carbonic acid
Answers
Answer:
yes sir uryan
Explanation:
52. If accounts receivable stays the same, and credit sales go up:
A. the average collection period will go up.
B. the average collection period will go down.
C. accounts receivable turnover will decrease.
D. no changes will occur.
Answers
If accounts receivable stays the same, and credit sales go up, the correct answer would be A. the average collection period will go up. This is because the average collection period is a measure of the time it takes for a company to collect its accounts receivable.
When credit sales go up, the total amount of accounts receivable will also go up. However, if the amount of accounts receivable stays the same, this means that customers are taking longer to pay their bills. Therefore, the average collection period will increase.
Accounts receivable turnover is a measure of how quickly a company collects its accounts receivable. It is calculated by dividing the total credit sales by the average accounts receivable balance. If the amount of accounts receivable stays the same and credit sales go up, this means that the accounts receivable turnover will increase because more sales are being made. Therefore, option C is not the correct answer.
Option D is also incorrect because there will be changes occurring. The increase in credit sales will have an impact on the company's financial performance.
In conclusion, if accounts receivable stays the same and credit sales go up, the average collection period will go up. It is important for companies to monitor their average collection period to ensure that they are collecting their accounts receivable in a timely manner. This will help to improve their cash flow and overall financial performance.
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7. A roofer is installing a roof that requires 178
sheets of plywood.
He has 98 sheets. How many
additional sheets must he order?
Answers
Answer:
80 sheets
Explanation:
The total number of sheets required is 178.Available sheets 98Sheets to be ordered should be the difference between required and available.= 178 - 98
=80
profit would be an example of a(n) group of answer choices mission statement. strategy. goal or objective. strength. operating philosophy.
Answers
Profit is an example of a(n) collection of possible answers. A mission statement identifies a goal or objective.
A mission statement is a declaration of purpose that lists the aims and ambitions of a company, group, or person. It is a concise declaration of what the organization or individual intends to do and how it intends to do it.
It is typically used to communicate the overall purpose of the organization or individual to its stakeholders, such as employees, customers, and investors. The mission statement should provide a clear and concise explanation of the organization's purpose and should serve as a guide for decision-making.
A mission statement should also be regularly reviewed and updated to ensure that it remains relevant and up-to-date.
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(HELP PLS!)
What are some hazards in Modeling?
Answers
Answer:
Some hazards could be starvation (with some agencies), you could slip and fall, cross contamination from sharing things, sexual dangers, stalking and stuff like that.
Answer:
health risk
financial risk
traveling risk
When would it be a good idea to invest your money instead of putting it in a savings
account?
A. When you won't need the money for a long time.
B. When you want to put your money somewhere safe.
C. When you're looking to maintain the value of your money
with a little bit of growth.
D. None of the above
Answers
The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ______.
Answers
Answer:
business operations
Explanation:
List the five (5) Traits of an Entrepreneur 1. 2. 3. 4. 5.
Answers
Answer:
Passion. For those uninitiated, entrepreneurs are not in it for the money. ...
Resilience. ...
Strong Sense of Self. ...
Flexibility. ...
Vision.
Explanation:
Resolute motivation and passion. The first and foremost quality of a successful entrepreneur is passion. ...
Self-discipline. This is one of the most essential characteristics of a successful entrepreneur. ...
Risk-taking ability. ...
Creative thinking. ...
Persistence.
GUYS I NEED YOUR HELP ASAP. ok so im running for school secretary and well i forgot to make an online flyer its due TOMORROW do you guys know any good online customizable flyer websites . if so lmk in the comments i will be forever grateful!!!! btw i just put a random subject
Answers
Answer:
canva is a good one
lemme know if u like it haha
What would be the net present value of a microwave oven that costs $159 and will save you $68 a year in time and food away from home
Answers
Answer:
159 - 68 = 91
Explanation:
What are the five C's of the marketing mix
Answers
The 5Cs in the marketing mix are Company, Collaborators, Customers, Competitors, and Context.
What is a Marketing mix?The marketing mix is the collection of activities, or tactics, that a business employs to market its brand or merchandise.
A marketing framework called the 5C Analysis is used to examine the environment in which a company operates.
Along with risk exposure to various environmental factors, it can shed light on the main success factors. The 5Cs are Company, Collaborators, Customers, Competitors, and Context.
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Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
Answers
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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Bonnie claims single with 2 federal withholding allowances, and contributes state tax of 20% of her federal tax. Below is a copy of Bonnie's biweekly statement of earnings. Bonnie knows that her gross earnings and federal tax are correct, but she thinks that her net pay is not correct. Using the fact that Social Security is 6.2% and Medicare is 1.45% of gross pay, explain why the given net pay is not correct. Determine how the error can be corrected, and what the net pay should be.
Answers
Answer:
The given net pay is not correct because Medicare is not 1.45% of her gross pay. The Medicare should be $11.02, making the correct net pay $641.86.
Answer:
The amount of Medicare tax has been calculated incorrectly. The Medicare tax should be $11.02, not $110.20. The actual net pay should be $641.86.
Explanation:
From Ed. :)
In which part of a résumé would you mention details of any prizes or awards that you won in professional competitions?
Answers
Answer:
"Scholarships or Competitions" would be the appropriate choice.
Explanation:
As even the title indicates, this would be the segment of your CV or resume wherever you mention the related honors, accomplishments, or prizes you have received for performing above the norm. It requires scholarships, contests, career-related honors, or perhaps even raises to management place throughout the job. Even with your remarkable accomplishments, users shouldn't have to build a special segment.Answer:
Honors and activities
Explanation:
Hope this helps :)
which situation is an example of skimming?
a) pop-up windows on a computer asking for you pin
b) a retailer scanning your credit card to steal its number
c) bank statements stolen from your garbage
d) a phone call from someone pretending to be a bank employee
Answers
Answer:
B.) a retailer scanning your credit card to steal its number
Explanation:
Drag each label to the correct location on the image.
Answers
A program known as a perpetual inventory system continuously estimates your inventory using electronic records rather than a physical inventory. This system starts with a physical count as the baseline and adjusts based on inbound and outbound purchases and shipments.
With an example, what is a perpetual inventory system?Your inventory balances are always tracked by a perpetual inventory system. Refreshes are consequently made when you get or sell stock. Your inventory accounts are immediately updated with all purchases and returns. A perpetual inventory system, for instance, might be used by a grocery store.
Do you use LIFO or FIFO for perpetual inventory?In perpetual FIFO, the first (or earliest) expenses are deducted from the Inventory account first and credited to the Cost of Goods Sold account last. The cost of goods sold and the cost of ending inventory will therefore be the same for both the perpetual and periodic FIFO cost flows.
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Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as:.
Answers
Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as User-generated content.
User-generated contentUGC for short is content that is created, published or submitted by users of a brand. In numerous cases, it's the most influential content for brands. Usually, contributors are unpaid fans who encourage a brand instead of the brand promoting itself.
Online users are evolved increasingly savvy in knowing which companies are using messy marketing tactics, and which ones are being genuine and evident.
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investors with a ______ risk tolerance may have a long time horizon and are usually looking to maximize their returns in the stock market.
Answers
investors with a high risk tolerance may have a long time horizon and are usually looking to maximize their returns in the stock market.
In economic and business, An investor generally can be defined as an individual that puts money into an entity for a financial return such as a business. Investors can be divided into several types, such as investors with high risk tolerance, investors with moderate risk tolerance, and investors with small risk tolerance. Investors with high risk tolerance usually have a lot of free time, so they can freely monitor stock movements on the market and earn big profits.
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