Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $193,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $130,000, variable costs of $34,900, and fixed costs of $12,800. The project will also require net working capital of $3400 that will be returned at the end of the project. The company has a tax rate of 34 percent and the project's required return is 14 percent. What is the net present value of this project?
A. $16,336
B. $13,314
C. $11,680
D. $14,948
E. $10,706

Answers

Answer 1

Answer:

D

Explanation:

First, let's calculate the depreciation schedule for the fixed assets using the MACRS percentages:

Year 1: Depreciation = $193,000 x 33.33% = $64,329.90

Year 2: Depreciation = $193,000 x 44.45% = $85,840.35

Year 3: Depreciation = $193,000 x 14.81% = $28,565.93

Year 4: Depreciation = $193,000 x 7.41% = $14,282.96

Next, let's calculate the annual operating cash flows:

Revenue: $130,000

Variable costs: $34,900

Fixed costs: $12,800

Depreciation: Year 1: $64,329.90, Year 2: $85,840.35, Year 3: $28,565.93, Year 4: $14,282.96

EBT (Earnings Before Taxes) = Revenue - Variable Costs - Fixed Costs - Depreciation

Taxes = EBT x Tax rate of 34%

Net Income = EBT - Taxes

Add back depreciation to get Cash Flow from Operations (CFO)

Year 0:

Initial Investment: -$193,000 - $3,400 (Net Working Capital) = -$196,400

Year 1:

Revenue: $130,000

Variable costs: $34,900

Fixed costs: $12,800

Depreciation: $64,329.90

EBT: $17,970.10

Taxes: $6,110.03

Net Income: $11,860.07

CFO: $76,190.97 ($11,860.07 + $64,329.90)

Year 2:

Revenue: $130,000

Variable costs: $34,900

Fixed costs: $12,800

Depreciation: $85,840.35

EBT: $87,459.65

Taxes: $29,704.87

Net Income: $57,754.78

CFO: $143,595.13 ($57,754.78 + $85,840.35)

Year 3:

Revenue: $130,000

Variable costs: $34,900

Fixed costs: $12,800

Depreciation: $28,565.93

EBT: $53,733.07

Taxes: $18,260.52

Net Income: $35,472.55

CFO: $64,038.48 ($35,472.55 + $28,565.93)

Year 4:

Revenue: $130,000

Variable costs: $34,900

Fixed costs: $12,800

Depreciation: $14,282.96

EBT: $68,016.04

Taxes: $23,126.58

Net Income: $44,889.46

CFO: $59,172.42 ($44,889.46 + $14,282.96)

Finally, let's calculate the terminal cash flow for Year 4:

Terminal Cash Flow = $3,400 (Net Working Capital) + Salvage Value of Fixed Assets = $0 (no salvage value)

Now we can calculate the project's NPV by discounting each year's cash flows to the present using a discount rate of 14%:

NPV = 14,948


Related Questions

Question 10 of 10 Which of the following best describes what a manager does? A. Influences others to purchase certain goods from certain stores B. Works for a company and produces resources to make a product C. Combines an idea, a plan, and various resources to start a new business D. Makes sure that a company is using its resources in a way that helps it meet its goals​

Answers

Answer:

d: makes sure that a company is using its resources in a way that helps it meet its goals.

Explanation:

the manager is the one that has the staff and everyone be apart of thats goals and asks thwm what type of goals they want to achieve to make the company better, but the manager is the one that makes sure they make all there deadlines towards there goals.

Which step in the product development process involves announcing a new
product on social media?

A. Post-launch review
B. Idea screening
C. Content development and testing
D. Commercialization and launch

Answers

Answer:

D

Explanation:

announcing the product takes place in the commercialization and launch of the product

In the product development process involves announcing a new product on social media the major step was Commercialization and launch. The correct option is (D).

What do you mean by the product development?

Product development, often known as new product management, is the process of conceptualizing, designing, developing, and selling newly produced or recently relaunched goods and services.

The entire process of creating a product, from conception through market launch, is referred to as product development.

Prior to launching your items on the market, it's critical to guarantee that there is demand, your final products are of the greatest possible quality, and that your potential clients will receive value from them.

The best products also contribute to the advancement of society, whether through the product line itself or through the creation of new jobs and sources of income.

Therefore, in the product development process involves announcing a new product on social media the major step was Commercialization and launch.

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Could you please explain what the benefits for having a checking account are, especially for minors?

Answers

Answer:

establish credit earn interest recieve deposits

Explanation:

Explain incentives and opportunity cost. Also give an example of both.

PLEASE ANWSER THIS AS A QUESTION YOU HAVE BEEN GIVING SO I CAN COPY AND PASTE PLEASE.

Answers

Answer:

Incentives are the rewards or punishments that shape people's choices. Incentives can be either monetary or non-monetary. When opportunity costs change, incentives change, and people's choices and behavior change. Changes in incentives cause people to change their behavior in predictable ways.

Explanation:

I think that is correct

Theta Inc. uses normal costing and applies overhead based on direct material costs. The predetermined overhead rate for the current year is 250% of direct material costs. During the year, $3,500,000 of direct material costs and $4,000,000 of direct labor costs were incurred. Theta's applied overhead is:

a. $9,375,000.

b. $1,600,000.

c. $8,750,000.

d. $1,400,000.

Answers

Answer:

a. $9,375,000.

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Burning of candle is which change?(chemical change or physical change)​

Answers

Burning a candle is a physical change
Hope that helped

Answer:

physical as it is getting smaller, but I would also say chemical as it's changing into melted wax? more of a physical change for me. hope this gelps

Which research tool is best suited to gathering qualitative market data?

A. Census statistics
B. In-depth interviews
C. Business records
D. Surveys

Answers

In-depth interviews is best suited to gathering qualitative market data.

What is market data?

Every business's success has been largely attributed to its use of market research techniques. Knowing the ins and outs of your target market is more important than ever in a world where competition seems to be endless.

Companies that benchmark can see 69% quicker growth and 45% higher productivity than those that don't, according to a PwC study.

Organizations have been able to learn not only some of the largest industry revelations, but also the smallest facts that most people miss, thanks to market research. Market research is crucial because it enables businesses to interpret information and make defensible judgments.

Therefore,  In-depth interviews is best suited to gathering qualitative market data.

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Answer:in-depth interviews

Explanation:

I just Took the quiz.

You are seriously injured in an accident caused by another driver. She has $25,000 bodily-injury liability insurance, and your insurance company has found that she cannot afford to give you any more than this $25,000. You have $25,000 unin sured/underinsured motorist coverage. Your costs from the accident total $55,000. How much out-of-pocket cost will you have for this accident?

Answers

Answer:

50000

Explanation:

What is the biggest business in the world right now and why.

Answers

Answer:

Apple

Explanation:

It is worth the most money. It is worth 2 trillion dollars.

Answer:

anime

Explanation:

an anime? jus cu.z i luv anime

Understanding the legal ramifications what types of policies should organizations implement when using social media tools for recruitment

Answers

Answer:

Social media is a vital tool for online recruitment in the large MNCs now-a-days.

Explanation:

In the recent, there is a trend of recruiting the new professionals through various online platforms and other social media tools.

With social media many legal consideration comes into account. The organizations while handling social media tools for recruitment has to look on various important points while posting their advertisement and collecting the data of the candidates online. There are severe legal ramifications on using social media in a wrong way, so organization have to be ethical while using them.

Firstly, they should respect the privacy of the social media communities.Professionalism and rules of ethics should be applied.They should respect the copyright laws.

most stock exchanges today use electronic trading

Answers

True

(Not sure what was the question about but I’m guessing it’s a true/false?)

hope this helps :)

Indicate the point where a monopoly will set its price.

Answers

Answer:

A monopoly will set its price at the point where marginal cost and marginal revenue intersects or meet (MC = MR).

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company that serves as the only power utility (electricity) provider to the public.

Generally, a monopoly will set its price at the point where marginal cost and marginal revenue intersects or meet (MC = MR). This is simply because a monopoly would derive the maximum profit at the point where MC = MR.

Answer:

The dot where green and red meet.

Explanation:

Apple Computer maintains company headquarters in _____.

Answers

Answer:  Cupertino

Explanation: Apple Park is located 1.2 miles east of the original Apple Campus. Apple has had a presence in Cupertino since 1977, which is why the company decided to build in the area rather than move to a cheaper, distant location. The campus is also next to a contaminated site under Superfund legislation with a groundwater plume.

Click this link to view O*NET's Tasks section for Actors.
Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to
O*NET, what are common tasks performed by Actors? Check all that apply.
creating artwork for use in stage sets
collaborating with other actors
working closely with directors, other actors, and playwrights to find the interpretation suited to the role
studying and rehearsing roles from scripts
learning about characters in scripts and their relationships to each other
teaching college classes and training other people how to become actors

Answers

Answer: B C D E

Explanation:

Did the assignment

To find the interpretation suited to the role, studying and rehearsing roles from scripts, learning about characters in scripts and their relationships to each other and teaching college classes and training other people how to become actors are common tasks performed by Actors. Hence, options B, C, D and E are correct.

Who is a director of a movie?

The directors are the movie's creative leaders. They uphold the artistic vision throughout pre-production and final editing. They are employed by the executive producer or producer, who is ultimately in control of a production.

A film director's responsibilities include reading and editing scripts, overseeing the cast and crew, and putting the final product together. The actors and other crew members will work with you to ensure that the movie ultimately reflects the aesthetic vision for the finished result.

Thus, options B, C, D and E are correct.

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Here is selected financial statement data regarding a company's property, plant, and equipment. Balance Sheet: Dec. 31, 2018 Dec. 31, 2017 Property, plant, and equipment $ 563,000 $ 294,000 Accumulated depreciation 286,000 237,000 Income Statement: 2018 Depreciation expense $ 105,000 Gain on sale of property, plant, and equipment 26,000 During the year, PPE with a book value of $23,000 were sold. In the statement of cash flows, the investing activities section should show a cash disbursement for "purchases of property, plant, and equipment" for $ _________.

Answers

Answer:

$292,000

Explanation:

price of old equipment sold = $26,000 + $23,000 = $49,000 (cash inflow)

new equipment purchased = $563,000 - $294,000 + $23,000 = $292,000 (cash outflow)

cash flow from investing activities:

cash disbursed for purchasing new equipment = ($292,000)

cash received from sale of old equipment = $49,000

net cash flow from investing activities = ($243,000)

HELP:(
when people consider purchasing auto insurance, they must realize which of the following is true?
A. it is often too expensive for most people to buy.
B. it is a personal amenity that only a few people have.
C. it is only important for people with outdated cars.
D.it is required by law for all car owners.

Answers

The answer is B Because people will like to steal your car more then others

Which of the following tips can help you avoid electrical
shock from a computer? (Select three answers.)
Unplug the computer before performing maintenance.
| Keep liquids away from the computer.
Open up the computer while it is turned on to see
what's wrong.
D Use only the keyboard and not the mouse when
performing maintenance.
Make sure the computer doesn't have worn out wiring.
Wash the inside of the computer with water to keep it clean.

Answers

Answers:


1) Unplug the computer before preforming maintenance.

2) Keep liquids away from computer.

3) Make sure the computer doesn’t have a worn out wiring.


I hope this helped :)

Critical reading is a
a Theory
b. Process
C. Summarization strategy
d. None of these
Please select the best answer from the choices provided
A
В
C
D

Answers

Answer:C

Explanation:

Answer:

The correct answer for this question is B

Your office is hosting a big meeting with some of its international
clients. During the meeting, one of the clients asks numerous,
very detailed questions. She also wants to see your risk
management plan. Which of these countries is she probably
from?
O Mexico
O United States
O Germany
O Ireland

Answers

Untied states or Mexico

"tractor is a modern tool of agriculture".justify this statement with suitable example​

Answers

Answer:

Tractors are the king among different farm equipment. They are the main workhorse of any modern farm. They provide the power and traction necessary to mechanize agricultural tasks. ... There are different types of tractors in the market, varying in size and capacity.

Explanation:

The user growth rate of a social media platform decreased by 15% per month. On January 1, the platform had 20 million users. If growth decreases at 15% each month, how many will it have by year end?

Answers

Answer:

2.844835 million current users

Explanation:

20 million x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85 x .85

why would you put money into a saving account

Answers

Answer:

You'd put money into a bank account to save it

Explanation:

you'd want to save it so you don't spend it yet.

Hope this helps! :)

Which of the following does not fall into the field of marketing?
-restaurant management
-education
-e-commerce
-professional sales

Answers

Answer:

professional sales

Explanation:

sales

review of the nigerian economy​

Answers

Answer:

amazing

Explanation:


Nigeria's economic freedom score is 57.2, making its economy the 116th freest in the 2020 Index. Its overall score has decreased by 0.1 point, reflecting a decline in the fiscal health score.

Under which tab can you find the options for reusing slides from other presentations?

Home
File
Insert
Design

Answers

More than likely under the design tab

Answer:

Home

Explanation:

I
In which book of original entry would you enter the following?
(a) Sales invoice

(b) Debit note-

(c) Cash sale-

(d) Purchase invoice-

(e) Credit note-​

Answers

Try e I THINK ITS E :D

A weekly report for new agents at a vacation sales company is shown in the histogram. A histogram titled Vacation Packages has number of packages sold on the x-axis and number of salespersons on the y-axis. 9 sold 1 to 2 packages; 7 sold 3 to 4; 4 sold 5 to 6; 3 sold 7 to 8; 2 sold 9 to 10; 1 sold 11 to 12; 2 sold 13 to 14; 3 sold 15 to 16. How many of the new agents sold more than 10 vacation packages?

Answers

Answer:

6 salespersons

Explanation:

A histogram shows the graphical representation of the distribution of numerical data using bars of different lengths.

From the histogram:

The number of salespersons who sold 11 - 12 packages = 1

The number of salespersons who sold 13 - 14 packages = 2

The number of salespersons who sold 15 - 16 packages = 3

Therefore the new agents who sold more than 10 vacation packages = 1 + 2 + 3 = 6 salespersons

Answer:its 6

Explanation:i took the quiz and i know the answer

3. Why are people who are unemployed but not looking for work not included in
the unemployment figures? (Hint: think of teenagers)
Need help due TODAY

Answers

Answer:

Because they don't keep track on it.

Explanation:

Basically they are just included in it because they don't keep track of it. Hope that helps!

On 3/1/X1 Landlord Co. received a $36,000 cash payment from Renter Co. to pay for a total of 17 months, starting in the current month. How much revenue should Landlord Co. recognize in the year ending 12/31/X1? Round your answer to the nearest penny.

Answers

Answer: $21177

Explanation:

First and foremost, we should note that since the revenue that Landlord Co. wants to recognize in the year ending 12/31/X1 will be for a period of 10 months that is, from 1st of March to 31st of December.

Therefore, the revenue that Landlord Co. should recognize in the year ending 12/31/X1 will be:

= $36000 × 10/17

= $21176.471

= $21177

What is information that CANNOT be measured and expressed in numbers? Question 1 options: Personal Information Target Market Data Qualitative data Quantitative data

Answers

Answer:

Qualitative data

Explanation:

Qualitative data is one that is used to characterise and categorise attributed of a population, as such it does not involve the use of numbers.

For example sex, state of origin, citizenship, name, and so on.

On the other hand the other options can be expressed as numbers. That is Personal Information, Target Market Data, and Quantitative data.

Basically qualitative data is descriptive rather than quantitative

Other Questions
Which of the following is true of requesting a physical examination during the selection process? Multiple Choice A. Supervisors can use employment tests without consulting the human resources department. B. Supervisors sometimes plck employees like themselves so that they will feel comfortable. C. The physical examination step heips to eliminate those with inadequate education and experience. D. The human resources department makes the final decision in the selection process. What is the purpose of an introduction paragraph?A. To sum up the overall point of the essayB. To provide supporting details about the main ideaC. To transition the reader from one idea to the nextD. To introduce the main topic of the essay A borosilicate glass (82% SiO2, 2% Al2O3, 4% Na2O, 12% B2O3) has a density of 2.23 g/cm3, while a fused silica glass (assume 100% SiO2) has a density of 2.2 g/cm3. Explain why the density of the borosilicate glass is different from the weighted average of the densities of its components. The densities of Al2O3, Na2O and B2O3 are 3.98 g/cm3, 2.27 g/cm3 and 2.5 g/cm3, respectively. The contact angle for water on clean glass is close to zero. Calculate the surface tension of water at 20C given that at that temperature water climbs to a height of 4.96 cm in a clean glass capillary tube of internal radius 0.300 mm. The density of water at 20C is 0.9982 g/cm3 Which of the following statements is FALSE? A. AVC is the sum of all costs that change as output changes divided by the number of units producedB. MC is downward sloping because of diminishing marginal returnsC. MPL intersects APL at the maximum APLD. MC is the amount by which total cost increases when output increases by one unitE. AFC is decreasing in q an area of the ocean where rapid change in ocean density occurs with a change in depth is the: Which logical fallacy is a diversionary tactic that avoids the key issues, often by avoiding opposing arguments rather than addressing them?a. Circular reasoning b. Hasty generalization c. Red herring d. Slippery slope How far did the Aztec Empire extend from north to south in 1503? Type the correct answer in the box. Spell all words correctly.What can you use to direct the viewer's attention in a particular direction or emphasize a certain object?You can use ato direct the viewer's attention in a particular direction or emphasize a certain object. Betty brought 140 shiny blue round stones which cost 8 dollars. If 14 pieces of this stone are in each bracelet, how many bracelets of blue shiny round stones will there be? TRUE OR FALSE emission lines of each element is like fingerprint of the element and this property is used in elemental analysis. type of literature which, in highly symbolic language, expresses the expectations of a cosmic upheaval and the triumph of good over evil The tendency of a previously extinguished behavior to reoccur following a rest period is called ? Exclse and Sales Tax Calculations Beck Company has just billed a customer for $1,400, an amount that includes a eight percent excise tax and a four percent state sales tax. a. What amount of revenue is recorded? b. Prepare a journal entry to record the transaction on the books of Beck Company what would be the corresponding concentration values of H3O be for pH values: 1,3,5,7,9,11 HELP MEEvaporation of Salt WaterIn this activity, you will model the evaporation of salt water. Evaporation of water from the oceans is an important part of Earths water cycle.You will need these materials:1 sheet of colored construction paperclear plastic or glass container, just large enough to hold the construction papera large drinking glass3 teaspoons of salta teaspoonone-fourth cup water at room temperatureHypothesis and Data CollectionFill the drinking glass with one-fourth cup of water and mix in 3 teaspoons of salt. Mix thoroughly until the salt is dissolved. (You may add a few more teaspoons of water to dissolve it, if needed.) Place the construction paper in the container and gently pour the water on the paper until it is saturated. In part A, predict what will happen in the container overnight.Part AWhat do you think will happen when you leave the paper in the container overnight?Part BNow leave the paper in the container overnight. In the morning, look at the paper and write down your observations.Analyze and ExtendPart AWere your predictions correct? Explain.Part BWhat process caused the changes that occurred on the paper?Part CEvaporation happens in the ocean as part of the water cycle. What fuels evaporation in the ocean?Part DSome ocean water evaporates, but certainly not all of it. When evaporation occurs, what happens to the ocean water that doesnt evaporate? Explain in terms of the salt content and what you saw in the experiment. Dispose of your waste properly:Shake the salt off the paper into the trash.Recycle the paper. on what dimension would todays smartphone score the highest in the idea framework? how might advertising with no apparent informational content in fact convey information to consumers? Josef owns four par value $1,000 bonds from Dowc Beverage Co. Each bond has a market value of 104. 561 and gives 9. 2% interest. Josef also owns 170 shares of stock in Dowc Beverage Co. Stock in Dowc Beverage Co. Has a share price of 26. 25 and pays a dividend of $2. 38. If the broker Josef employed to purchase these stocks and bonds charges a commission of $72 for each ten shares of stock bought or sold and a commission of 4% of the market value of each bond bought or sold, which aspect of Josefs investment in Dowc Beverage Co. Has a greater percent yield, and how much greater is it? a. The stocks have a yield 2. 15 percentage points higher than that of the bonds. B. The stocks have a yield 0. 27 percentage points higher than that of the bonds. C. The bonds have a yield 1. 35 percentage points higher than that of the stocks. D. The bonds have a yield 2. 08 percentage points higher than that of the stocks. use the chase test to tell whether each of the following dependencies hold in a relation r(a, b, c, d, e) with the dependencies a bc, b d, and c e. a)a d. b) a d. c)a e. d)a e.