subject
Business, 13.07.2019 02:30 nelly4868

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company�s discount rate is 17%. after careful study, oakmont estimated the following costs and revenues for the new product:
cost of equipment needed $ 275,000
working capital needed $ 86,000
overhaul of the equipment in two years $ 10,000
salvage value of the equipment in four years $ 13,000
annual revenues and costs:
sales revenues $ 420,000
variable expenses $ 205,000
fixed out-of-pocket operating costs $ 87,000
when the project concludes in four years the working capital will be released for investment elsewhere within the company.
calculate the net present value of this investment opportunity.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 13:00
The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a tv now, and wait a year to pay (with no in
Answers: 1
question
Business, 21.06.2019 21:50
Discuss how the resource-based view (rbv) of the firm combines the two perspectives of (1) an internal analysis of a firm and (2) an external analysis of its industry and its competitive environment. include comments on the different types of firm resources and how these resources can be used by a firm to build sustainable competitive advantages.
Answers: 3
question
Business, 22.06.2019 06:00
Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)
Answers: 1
question
Business, 22.06.2019 07:40
(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?
Answers: 3
You know the right answer?
Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the...
Questions
question
Mathematics, 19.01.2021 22:10
question
Mathematics, 19.01.2021 22:10
Questions on the website: 13722363