Business
Business, 24.06.2021 20:00, estrellaalcantar16

I-Brew Inc. is thinking of starting a new line of coffee business: coffee trucks will deliver coffee from popular brands to customers' doors and customize coffee flavor right there. The company estimates that it will cost $487,000 to immediately invest into new delivery vehicles and coffee brewing machines. The estimated operating cash flow will equal $153,000 per year. At the end of Year 3 this pilot coffee delivery project will be over, at which time all used vehicles and equipment will be sold at the after-tax salvage value of $292,000. The company also plans to immediately set aside $45,000 in cash which will be recovered at the end of the project. Calculate the Net Present Value of the project if the appropriate discount rate is 14%. (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10,000.23. Do NOT use "$" in your answer.)

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 02:30, milkshakegrande101
The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.
Answers: 2
image
Business, 22.06.2019 20:30, smarty5187
(30 total points) suppose a firm’s production function is given by q = l1/2*k1/2. the marginal product of labor and the marginal product of capital are given by: mpl = 1/ 2 1/ 2 2l k , and mpk = 1/ 2 1/ 2 2k l . a) (12 points) if the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output q = 18?
Answers: 1
image
Business, 22.06.2019 20:30, BeverlyFarmer
Discuss ways that oracle could provide client customers with the ability to form better relationships with customers.
Answers: 3
image
Business, 22.06.2019 20:40, Blazingangelkl
Which one of the following statements is correct? process costing systems use periodic inventory systems. process costing systems assign costs to departments or processes for a time period. companies that produce many different products or services are more likely to use process costing systems. production is continuous when a job-order costing is used to ensure that adequate quantities are on hand.
Answers: 2
Do you know the correct answer?
I-Brew Inc. is thinking of starting a new line of coffee business: coffee trucks will deliver coffee...

Questions in other subjects:

Konu
Chemistry, 30.03.2021 03:20