Business, 06.08.2019 00:10 casianogabriel2004

Monterey company is considering investing in two new vans that are expected to generate combined cash inflows of $30,000 per year. the vans’ combined purchase price is $93,000. the expected life and salvage value of each are four years and $23,000, respectively. monterey has an average cost of capital of 7 percent. (pv of $1 and pva of $1) (use appropriate factor(s) from the tables provided.)
required:
calculate the net present value of the investment opportunity. (round your intermediate calculations and final answer to 2 decimal places.)
indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted.
a. net present value?
b. will the return be above or below the capital?
should the investment opportuntity be accepted?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 19:00

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:

Answers: 1

Answer

Business, 23.06.2019 12:30

You’ve decided to buy a new computer that costs $1,500. but best buy will let you take the computer home without making paying the full price immediately. rather, best buy will let you pay $500 now, and $500 at the end of each of the next two years. if the interest rate is 5%, how much do you need today to make sure you can make all the payments to best buy?

Answers: 1

Answer

Business, 23.06.2019 21:00

Question 20 if orange juice prices double next year, there will be a rightward shift in the demand for grapefruit juice. rightward shift in the supply of grapefruit juice. leftward shift in the supply of grapefruit juice. leftward shift in the demand for grapefruit juice.

Answers: 1

Answer

Business, 24.06.2019 00:30

An information technology analyst believes that they are losing customers on their website who find the checkout and purchase system too complicated. she adds a one-click feature to the website to make it easier, but finds that only about 99% of the customers are using it. she decides to launch an ad awareness campaign to tell customers about the new feature in the hope of increasing the percentage. she doesn't see much of a difference, so she hires a consultant to her. the consultant selects a random sample of recent purchases, tests the hypothesis that the ads produced no change against the alternative that the percent who use the one-click feature is now greater than 99%, and finds a p-value of 0.240.24. what conclusion is appropriate?

Answers: 3

Answer

You know the right answer?

Monterey company is considering investing in two new vans that are expected to generate combined cas...

Questions