Business, 11.12.2019 22:31 nellydeb7736

Perit industries has $135,000 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 $ 135,000 $ 0 working capital investment required $ 0 $ 135,000 annual cash inflows $ 22,000 $ 66,000 salvage value of equipment in six years $ 8,400 $ 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 17%. click here to view exhibit 13b-1 and exhibit 13b-2, to determine the appropriate discount factor(s) using tables. required: 1. compute the net present value of project a. (enter negative values 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 values 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?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 22:50

The winston company estimates that the factory overhead for the following year will be $1,250,000. the company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. the total machine hours for the year were 54,300. the actual factory overhead for the year were $1,375,000. determine the over- or underapplied amount for the year.

Answers: 1

Answer

Business, 22.06.2019 06:10

Investment x offers to pay you $5,700 per year for 9 years, whereas investment y offers to pay you $8,300 per year for 5 years. if the discount rate is 6 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y $ if the discount rate is 16 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y

Answers: 1

Answer

Business, 22.06.2019 22:50

Clooney corp. establishes a petty cash fund for $225 and issues a credit card to its office manager. by the end of the month, employees made one expenditure from the petty cash fund (entertainment, $20) and three expenditures with the credit card (postage, $59; delivery, $84; supplies expense, $49).record all employee expenditures, and record the entry to replenish the petty cash fund. the credit card balance will be paid later. (if no entry is required for a transaction/event, select "no journal entry required" in the first account record expenditures from credit card and the petty cash fund.

Answers: 2

Answer

Business, 23.06.2019 01:30

True or false: it is generally better to concentrate your exercise time on the weekends only for maximum aerobic benefit.

Answers: 1

Answer

You know the right answer?

Perit industries has $135,000 to invest. the company is trying to decide between two alternative use...

Questions