Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years. The investment costs $56,100 and has an estimated $7,500 salvage value.
Assume Peng requires a 5% return on its investments.
Compute the net present value of this investment.
(FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative amounts should be indicated by a minus sign.)
Cash Flow Select Chart Amount X PV Factor = Present Value
Annual cash flow Present Value of an Annuity of 1 ? X 2.7232 ?
Residual value Present Value of 1 $ 7,500 X 0.8638 = $ 6,479
Present value of cash inflows ?
Immediate cash outflows

You decided to charge $100 for your new computer game, but people are not buying it. what could you do to encourage people to buy your game?

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

Explain the relationship between consumers and producers in economic growth and activity