subject
Business, 26.11.2019 23:31 50057543

Perit industries has $190,000 to invest. the company is trying to decide between two alternative uses of the funds. the alternatives are: project a project b cost of equipment required $ 190,000 $ 0 working capital investment required $ 0 $ 190,000 annual cash inflows $ 28,000 $ 48,000 salvage value of equipment in six years $ 8,900 $ 0 life of the project 6 years 6 years the working capital needed for project b will be released at the end of six years for investment elsewhere. perit industries’ discount rate is 15%. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

required:

1. compute the net present value of project a. (enter negative value with a minus sign. round your final answer to the nearest whole dollar amount.)

2. compute the net present value of project b. (enter negative value with a minus sign. round your final answer to the nearest whole dollar amount.)

3. which investment alternative (if either) would you recommend that the company accept?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 13:40
After much consideration, you have chosen cancun over ft. lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision? a. the marginal cost of going to cancun decreases.b. the marginal cost of going to ft. lauderdale decreases.c. the marginal benefit of going to cancun increases.d. the marginal benefit of going to ft. lauderdale decreases.
Answers: 2
question
Business, 22.06.2019 17:30
Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.
Answers: 3
question
Business, 22.06.2019 19:50
The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000
Answers: 2
question
Business, 22.06.2019 20:30
Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions
Answers: 3
You know the right answer?
Perit industries has $190,000 to invest. the company is trying to decide between two alternative use...
Questions
question
Mathematics, 30.06.2019 01:00