Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume the following information for a capital bud

Assume the following information for a capital budgeting proposal with a five-year time horizon: ...

80.2K

Verified Solution

Question

Accounting

Assume the following information for a capital budgeting proposal with a five-year time horizon:

Initial investment: Cost of equipment (zero salvage value) $ 460,000

Annual revenues and costs: Sales revenues $ 300,000

Variable expenses $ 130,000

Depreciation expense $ 50,000

Fixed out-of-pocket costs $ 40,000

If the companys discount rate is 12%, then the net present value for this investment is closest to:

Multiple Choice

A. $171,600.

B. $(71,600).

C. $(171,600).

D. $8,650.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand...

Statistics
Q

Section 28.3 What germ layers are present in lophotrochozoans? What type of symmetry do they have? What two...

Biology
Q

Activity 7: • Compare the conduction velocities of the three neurons. Based on what we discussed...

Medical Sciences
Q

26 A Qubit can be Implemented by Select all that apply a photoionization of photon...

Physics
Q

ap16Sec1 003 pg The figure below shows contours of g x y on the region...

Geometry
Q

point on the terminal side of an angle 8 in standard position is 4 5...

Calculus
Q

The eigenvector 2i 1 i of the matrix 5 2 a 2 3i b 2...

Algebra
Q

Crane Corporation uses the perpetual inventory system and began business on April 1. During the...

Accounting
Q

Robin is a scientist and on 15 May 2020 she received compensation of $80,000 for...

Accounting
Q

What are two advantages and two disadvantages of the ABC method of costing?

Accounting
Q

Par inc purchased 70.57% of Sub Corp's total outstanding voting shares for 5275.447 on January...

Accounting
Q

Briefly describe how, and under what circumstances, the IRS can use its summons power to...

Accounting