If a small company is purchased now for $55,000 it will lose $9,500 each year for the first four years. An additional investment of $30,000 at the end of the fourth year will result in a yearly profit of P30,000 from the fifth through the tenth year. Then on the tenth year the company can be sold for $75,000. If the rate of return is 20%, will you buy the company? Use PWM.
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If a small company is purchased now for $55,000 it will lose $9,500 each year for the first four years. An additional investment of $30,000 at the end of the fourth year will result in a yearly profit of P30,000 from the fifth through the tenth year. Then on the tenth year the company can be sold for $75,000. If the rate of return is 20%, will you buy the company? Use PWM.
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- You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $79,000 immediately. If your cost of capital is 7.2%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $ (Round to the nearest dollar) COOYou are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $70,000 immediately. If your cost of capital is 6.9%, what is the minimumdollar amount you need to sell the goods for in order for this to be a non-negative NPV?The minimum dollar amount is $(Round to the nearest dollar.)You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $86,000 immediately. If your cost of capital is 7.3%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $. (Round to the nearest dollar)
- You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $87,000 immediately. If your cost of capital is 6.9%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV?You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $86,000 immediately. If your cost of capital is 6.6%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV?You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $89,000 immediately. If your cost of capital is 6.9%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? $______________ (Round to the nearest dollar.)
- Assumption Corporation is considering replacing an obsolete machine with a new machine. The new machine would cost P250,000 and would have a ten-year useful life. The new machine would cost P12,000 per year to operate and maintain, but would save P55,000 per year in labor and other costs. The old machine can be sold now for P10,000. The simple rate of return on the new machine is closest to: a. 17.9% b. 7.5% c. 22.0% d. 7.2%Chevrolet Corporation is considering replacing an obsolete machine with a new machine. The new machine would cost P250,000 and would have a ten-year useful life. The new machine would cost P12,000 per year to operate and maintain, but would save P55,000 per year in labor and other costs. The old machine can be sold now for P10,000. The simple rate of return on the new machine is closest to: A. 17.9% B. 7.5% C. 22.0% D. 7.2%The net present value of an investment is the present value of the expected cash flow minus the initial investment. The company's managers hf. require a 9% return (required rate of return). The managers are considering buying a device that costs ISK 210,000. The device will create a cash flow of ISK 84,000. during the next three years, at the end of each year. What is the net present value of this investment (net present value of investment)? Group of answer choices a. ISK 21,261 b. ISK 212,604 c. ISK 2,629 d. 42,000 ISK