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, 22.06.2019 02:30

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $

Answers: 1

Answer

Business, 22.06.2019 09:50

phillips, inc. had the following financial data for the year ended december 31, 2019. cash $ 41,000 cash equivalents 75,000 long term investments 59,000 total current liabilities 149,000 what is the cash ratio as of december 31, 2019, for phillips, inc.? (round your answer to two decimal places.)

Answers: 3

Answer

Business, 22.06.2019 10:30

What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.

Answers: 1

Answer

Business, 22.06.2019 20:00

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?

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