Novak Company is considering investing in a new dock that will cost $670,000. The company expects to use the dock for 5 years, after which it will be sold for $410,000. Novak anticipates annual cash flows of $220,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 11%. Click here to view PV tables. Calculate the net present value of the dock. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 5,275.) Net present value $ Indicate whether Novak should make the investment.
Answers
Present value of annual cash flows$4,042 (rounded to nearest whole number)Calculation of net present value of dockNPV = Present value of annual cash flows - Initial cost of dockNPV = $4,042 - $670,000NPV = -$665,958
Novak Company is considering investing in a new dock that will cost $670,000. The company expects to use the dock for 5 years, after which it will be sold for $410,000. Novak anticipates annual cash flows of $220,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 11%. Calculate the net present value of the dock and indicate whether Novak should make the investment.Solution:Calculation of present value of annual cash flowsYearCash FlowPresent Value at 11%111-670,000-670,0002$220,000$197,3023$220,000$176,7844$220,000$158,5255$220,000$142,045Present value of annual cash flows$4,042 (rounded to nearest whole number)Calculation of net present value of dockNPV = Present value of annual cash flows - Initial cost of dockNPV = $4,042 - $670,000NPV = -$665,958 (rounded to nearest whole number)Indication whether Novak should make the investment:The net present value of the dock is negative, which indicates that the investment will not be profitable. Since the net present value is less than zero, Novak should not invest in the new dock.
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Related Questions
How would a consumer calculate the value of an Apple iPhone?
Answers
Answer:
Explanation:
Apple's value has been created through voluntary trade with customers; it has convinced its customers that its products are worth more than those of its competitors, and clearly their customers agree.” An immense amount of groundwork was done by people who came before Apple and Steve Jobs, all of whom Crotty credits.
The consumer are the large demand of to calculate the value of an Apple iPhone are the voluntary trade with the customer. The company are the more influenced the consumer.
What is consumer?
The term “consumer” means purchasing a product or service for the purpose of personal use. The consumer are consuming the product and services. The consumer are buying the product and services with exchange of money. The consumer are to switch to the substitutes goods.
The consumer was to use the mobiles was more like the Apple iPhone. The company was the direct sale to the consumer, The consumer demand because are the voluntary trade with customers. The company convinced the consumer the customers was the agreed.
As a result, the consumer calculate the value of an Apple iPhone are the convinced the consumer are the purchased the iPhone for the new features.
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Suppose the market for oranges is perfectly competitive, with (Pe, Qe) = ($2/lb, 1000) .a. Draw supply and demand curves and label the consumer surplus, producer surplus, and total surplus.b. To save "family farmers," the government places a binding price floor of $2.50/lb on oranges. Show the impact of the floor on producer surplus, consumer surplus, and total surplus.c. Suppose the government agrees to purchase all unsold oranges at the price floor. To preserve the market price, it must destroy (costlessly) all the oranges it buys. Show what happens to your answer to (b).
Answers
a. In a perfectly competitive market for oranges with a price of $2/lb and a quantity of 1000, the demand and supply curves intersect at this point.
Consumer surplus is represented as a triangle with vertices (0,0), ($2/lb, 1000), and ($2/lb, 0).Producer surplus is represented as a triangle with vertices (0,0), ($2/lb, 0), and ($2/lb, 1000).
Total surplus is the area of the entire rectangle with vertices (0,0), ($2/lb, 0), ($2/lb, 1000), and (0, 1000).
b. If the government imposes a binding price floor of $2.50/lb on oranges, the producer surplus increases, but the consumer surplus decreases. The total surplus remains the same.
c. If the government buys all unsold oranges at the price floor and destroys them, the producer surplus remains unchanged, but the consumer surplus decreases to zero, and the total surplus decreases as well.
a. The supply and demand curves for oranges in a perfectly competitive market can be represented as follows:
Demand: P = $2/lb; Q = 1000
Supply: P = $2/lb; Q = 1000
Consumer surplus is the area above the demand curve and below the market price. It is represented as a triangle with vertices (0,0), ($2/lb, 1000), and ($2/lb, 0).
Producer surplus is the area below the supply curve and above the market price. It is represented as a triangle with vertices (0,0), ($2/lb, 0), and ($2/lb, 1000).
Total surplus is the sum of the consumer and producer surplus, which is the area of the entire rectangle with vertices (0,0), ($2/lb, 0), ($2/lb, 1000), and (0, 1000).
b. When the government places a binding price floor of $2.50/lb on oranges, the producer surplus increases to the area of the triangle with vertices (0,0), ($2.50/lb, 0), and ($2.50/lb, 1000).
The consumer surplus decreases to the area of the triangle with vertices (0,0), ($2/lb, 1000), and ($2.50/lb, 0). The total surplus remains the same as it was before.
c. When the government purchases all unsold oranges at the price floor and destroys them costlessly, the producer surplus remains unchanged, the consumer surplus decreases to zero, and the total surplus decreases to the area of the triangle with vertices (0,0), ($2/lb, 0), and ($2.50/lb, 0).
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I need help with the business ventures Pt 3 assignment, I dont know how to do the tables with graphic designing business. I NEED HELP FAST!!!
Answers
Graphic design is a field that creative people with a love of art, technology, and communication might want to consider.
What about graphic design?Graphic design is both a profession and an academic field. and applied art, whose work entails the projection of visual signals meant to convey particular messages to social groups with specific aims. An multidisciplinary area of both the fine arts and design, graphic design is. Using manual or digital technologies, it requires creativity, invention, and lateral thinking. Text and visuals are frequently used to convey ideas graphically.The graphic designer's function during the communication process is that of the message's encoder or interpreter. They focus on the analysis, arrangement, and presentation of visual messages. Graphic design typically goes beyond what language alone can say by using ornamentation, graphics, compositional arrangement of the text, and appealing typography.Graphic design is a field that creative people with a love of art, technology, and communication might want to consider.
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make a budget of 2000 dollars for a grade six pupil
Answers
Answer:
Spend half save half
Explanation:
What is the summary of the general ledger?
Answers
The general ledger summary in accounting is all those records that were made as debits or credits referring to the commercial operations that a company has had.
What is the general ledger used for?The general ledger is used to collect information in a summarized way of all the economic operations that are registered in the different accounting accounts of the company in a chronological way.
The general ledger is important because it allows to see at a glance the movements of the company that are reflected in this book, in this way the administration and accounting of all the resources is efficient.
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True Stories Company sold the rights to a documentary film. They are expecting significant revenue in Year 1. The revenue stream is expected to decrease steadily until it reaches zero in Year 5. Based on this Which depreciation method should be used to most closely match the expense to the revenue stream the asset produces
Answers
The best depreciation method for this company is the double-declining-balance
In economics, depreciation occurs when a product gradually loses its value. The most common causes of depreciation are:
The product becomes obsoleteWear and tear of the productThe product's popularity decreasesMoreover, there are different methods to understand this decline in value that include:
Double-declining balanceStraight lineUnits-of-productionThe double-declining balance method implies depreciation is not constant over the years but as years pass the depreciation increases. This method applies to True Stories Company because it is expected the documentary film becomes less and less popular every year, and therefore depreciation is accelerated not constant.
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Define the term lifestyle and explain the kind of lifestyle you would like in your future. Then, discuss how work affects
lifestyle.
Answers
Answer:
the way in which a person or group lives.
Explanation:
ME working out alot and bieng very fit and It wouldnt effect my lifestyle it would actually help me cause i would live longer and be healthy
The term lifestyle refers to the habits and practices that define the life of a person, which also involves his/her work.
What is lifestyle?Lifestyle can be defined as the set of attitudes and patterns used in a routine and define the life of an individual.
Lifestyle can affect work because it is directly associated with the health and well-being of an individual.In conclusion, the term lifestyle refers to the habits and practices that define the life of a person, which also involves his/her work.
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If a product goes on sale in a retail store, then the consumer might be more likely to buy the product. Which buying behavior factor does this represent
Answers
Answer:
situation
Explanation:
Customers may be more likely to purchase a product if it is put on sale at a physical store. This represents a situational buying behavior component.
What does the component of situational buying behavior entail?Situational considerations are significant in the decision-making process for consumers. These elements may include the availability of the desired product, the occasion of the purchase, the place, and the climate.
Situational effects are transient events that have an impact on how customers behave, influencing whether they actually purchase your product, purchase other products from you, or make no purchases at all. They consist of elements like the buyer's mood, the purchase's purpose, and time-related, social, and physical aspects.
Which five situational elements are there?Physical surroundings, social surroundings, temporal perspective, task description, and antecedent state are the five components that make up situational factors.
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Your job is to cold call people and sell
them life insurance. You do some
research and find out that the life
insurance policy could be purchased
cheaper online. Your boss forbids you
to tell the customer this and expects
you to sign up at least 5 new
customers per day.
What will you do?
Answers
I believe I would be cheating customers if I don't do right by them. I would prefer to look for a new job than do something that is ethically wrong and against my morals.
As an employee, I would first try to figure out a way to do right by the customers and reduce the insurance fee. I would try to explain to my boss how we could benefit and increase our customer base if we reduce the fees.
If I fail at getting the price change. I would try looking for a new job that fits well with my morals. Till the time I get a new job, I would try working the same job and explaining to the boss.
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Why is a city planner an important career
Answers
Answer:
Being a city planner is a very important career since there work affects the city that they are working on. City planners create programs, plan out ways to develop land, plans to place buildings and features. Put in facilities, etc.
In your city, most of the buildings and places where are there neighborhoods. Are most likely the work of a team of city planners. It says it in its name. A city planner is a planner who uses there skills to plan out a city or plan out things in the city. The placements of certain museums or buildings are the result of a city planner.
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Energy Conservation in a modern world. Explain
Answers
Answer: Energy consumption has risen drastically in the last few years.
Explanation:
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
Municipal bonds are issued by what?
Answers
Answer:
Hi, the correct answer to your question is they are securities issued by states, cities
etc/more.
Explanation:
They mostly do this for building like highways, roads and more. It is used to raise more money to build important things for our environment.
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Henry Ford paid his workers $5 a day in 1914 when the CPI was 10. Today with a price index at 177, the $5 a day is worth $88.50. True or false?
Answers
True. The statement "Henry Ford paid his workers $5 a day in 1914 when the CPI was 10. Today with a price index at 177, the $5 a day is worth $88.50" is true.
The calculation below shows that the statement is correct. Calculation: CPI today/CPI in 1914 * Dollar value in 1914= Dollar value today177/10 * $5= $88.50
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can someone help me? got till the end of the day :/
Answers
Answer:
A
Explanation:
an open order is on the member firm's internal order entry system to sell 200 xyz at 30 stop gtc. the company has declared a 50% stock dividend. on the morning of the ex date, the order on the book will be:
Answers
On the morning of the ex-date, the order on the book will be adjusted for the stock dividend. Since a 50% stock dividend has been declared, the number of shares will increase by 50%.
Since the company has declared a 50% stock dividend, the number of shares for the open sell order will increase by 50%. Originally, the order was to sell 200 XYZ. With the stock dividend, the number of shares will increase by 50%: Initially, the order was to sell 200 XYZ shares. After the stock dividend, the number of shares will increase by 50%, resulting in: 200 + (200 * 50%) = 200 + 100 = 300 shares. Therefore, on the morning of the ex-date, the order on the book will be to sell 300 XYZ shares at 30 Stop GTC.
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What do you think the future trend of women's involvement in
marketing and executive level careers will be?
Answers
Future trend of women's involvement in marketing and executive level careers:
1. Increasing representation of women in leadership positions.
2. on diversity and inclusion.
3. Advancement in closing the gender pay gap.
4. Continued efforts to break gender stereotypes and biases.
5. Greater support for work-life balance and flexible work arrangements.
The future trend of women's involvement in marketing and executive level careers is expected to witness positive developments. Firstly, there will likely be an increasing representation of women in leadership positions. Organizations are recognizing the value of diverse perspectives and the benefits of gender-balanced leadership teams.
Furthermore, there will be a growing emphasis on diversity and inclusion, with companies actively working to create inclusive environments that support the advancement of women. This includes implementing policies and initiatives to ensure equal opportunities for career growth and development.
Efforts to close the gender pay gap are also expected to continue. As awareness grows, organizations are striving to address pay disparities and ensure equitable compensation for women in marketing and executive roles.
Breaking gender stereotypes and biases will remain an important focus. Society's perception of women's capabilities in leadership positions is changing, and organizations are challenging traditional norms to promote gender equality and recognize individual merit.
Additionally, there will be greater support for work-life balance and flexible work arrangements. Recognizing the importance of work-life integration, companies are adopting policies and practices that enable women to succeed in their careers while maintaining personal well-being and family responsibilities.
Overall, the future trend indicates a positive shift towards increased opportunities, recognition, and support for women's involvement in marketing and executive level careers, fostering a more diverse and inclusive professional landscape.
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what happens if you overdraw your checking account?
Answers
Answer:
Your bank can close your account and report you to a debit bureau, which may make it hard for you to get approved for an account in the future.
teams that rush to make quick decisions in order to avoid disagreement experience a problem called .
Answers
Teams that rush to make quick decisions in order to avoid disagreement experience a problem called groupthink. Groupthink occurs when a group values harmony and consensus over critical evaluation and independent thinking, leading to flawed decision-making and a lack of creativity.
Groupthink is a phenomenon that can occur when group members prioritize social cohesion and a desire for unanimity over objective analysis and sound decision-making. This can be especially problematic when there is pressure to make quick decisions, such as in high-stress situations or in organizations with tight deadlines. In such situations, group members may suppress dissenting opinions, fail to consider alternative viewpoints, and ignore warning signs or red flags in order to maintain the appearance of unanimity. This can lead to disastrous outcomes, as the group becomes insulated from outside perspectives and overly confident in their own judgments. To avoid groupthink, it is important to encourage open communication, diverse viewpoints, and a willingness to challenge assumptions and consider alternative perspectives.
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To move toward a personal vision, what smaller steps should you take?
A. Set smaller, more specific goals.
B. Participate in many internships.
C. Change your lifestyle.
D. Switch your personal vision frequently.
Answers
Answer:
D
Explanation:
NEED HELP URGENTLY, WILL GIVE BRAINLIEST
Los Angeles’s population has increased by 800,000 residents. Thirty years ago there was just one Burger King restaurant. Now, there are over 100 fast food restaurants for residents to choose from. How does this impact the supply of Burger Kings’s hamburgers?
A. Supply does not change
B. Increase in supply
C. Decrease in Supply
Answers
Answer:
D
Explanation:
Customers now have more restaurants available to choose from and decreases Burger Kings business
how Is productivity determined?
a.by measuring The relationship to inputs and outputs
b. by comparing the profitability of competing markets
c. by measuring the relationship between supply and demand
d. by comparing the number of hours worked by all employees
Answers
Answer:
a. by measuring The relationship to inputs and outputs
Explanation:
Productivity shows the efficiency of generating output using the available inputs. It is measured by dividing the output of a company or a production line by the inputs used. Therefore, productivity shows the relationship between inputs and outputs.
Productivity can also be measured by labor output. In this case, the output is divided by the number of labor hours used.
What is a handout? When would it be useful to use a handout?.
Answers
Answer:
A handout is a written aid you provide to the audience. It would be helpful to use a handout if your speech contains detailed information that the audience may not remember without a tangible reminder. It may also be useful to use a handout for "how-to" speeches, to outline the step-by-step instructions.
Explanation:
Answer:
Handouts are printed materials that can be distributed to the audience. It would be best to use these when you have a very details speech, they won't remember every word, so you could have it written down so when they want, they can check it out later on after the speech.
Explanation
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In terms of SUPPLY, what factors have contributed to the fall in oil prices?
Answers
Which skills are most likely to start at birth and develop as a person matures?
hard skills
work skills
people skills
soft skills
Answers
Which skills are most probable to start at delivery and broaden as a person matures? people's Skills are due to the fact you're born knowing how to interact with human beings and your skills most effectively get better as you grow up.
Skills are the learned potential to perform a motion with determined effects with accurate execution often inside a given quantity of time, power, or each. abilities can often be divided into domain-well-known and area-specific abilities.
Skills importance: They can be gentle capabilities, inclusive of problem-fixing abilities, powerful communique, or time control, or hard competencies, like pace typing, and the use of Powerpoint or Excel. sense unfastened to encompass any widely wide-spread abilities even if they may be no longer particularly required or cited within the activity description.
A critical skill is an important developed potential or capacity obtained via planned, systematic, and sustained efforts to easily and adaptively carry out complicated activities or activity functions regarding ideas, matters, and/or human beings. non-public talents are acknowledged as soft capabilities which are not clean to educate (despite the fact that no longer impossible). they're additionally referred to as interpersonal or even 'human beings' capabilities. Examples encompass dependability, adaptability, motivation, trouble-fixing, and analytical competencies.
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People skills are most likely to start at birth and develop as a person matures.
Childhood social and personality improvement emerges via the interplay of social impacts, biological maturation, and the kid’s representations of the social world and the self. This interaction is illustrated in a discussion of the impact of great relationships, the improvement of social know-how, the increase of personality, and the improvement of social and emotional competence in youth.
This interaction may be discovered within the development of the earliest relationships among babies and their mother and father in the first yr. sincerely all toddlers residing in everyday circumstances increase strong emotional attachments to individuals who take care of them. Psychologists agree with that the improvement of those attachments is as biologically natural as studying to walk and not in reality a byproduct of the mother and father’ provision of food or warmth. alternatively, attachments have developed in human beings because they sell youngsters’s motivation to live close to folks who care for them.
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If your company increases its market penetration, what is happening?
A The target market is growing.
В. More people in the target market are buying the company's product.
C. The market saturation of the target market has decreased.
D. Competitors who offer similar products are entering the market.
Answers
Answer: More people in the target market are buying the company's product.
Explanation:
Answer:
B.
More people in the target market are buying the company's product.
Explanation:
According to Becca Aaronson, product management is even more complicated for journalism and news because of the added challenge of integrating _________________ into the overall product strategy.
Answers
Product management in journalism and news is more complicated and challenging because of the inclusion of Ethics and Editorial requirements.
In journalism and news these days:
There is an emphasis on being ethical in reporting There is also an emphasis on ensuring the accuracy of the news before it is spread so as not to encourage fake news.This has made reporting much harder and more complicated because it requires those that are involved to be more diligent and thorough which takes more time and resources.
In conclusion, news and journalism is more complicated as a result of stronger editorial and ethics requirements.
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What type of manager is T. K. Kurien how would you characterize his leadership style
Answers
T. K. Kurien is an Indian business executive who previously served as the CEO of Wipro Limited, an Indian multinational corporation specializing in IT services and consulting. As the CEO, Kurien can be characterized as a transformational leader.
Transformational leadership is a leadership style where leaders inspire and motivate their teams to achieve exceptional performance and personal growth. They often display vision, charisma, and the ability to communicate effectively. They encourage creativity, innovation, and intellectual stimulation among their employees. Kurien has been known for his strategic vision and his ability to drive change and transform Wipro's business. He implemented initiatives to diversify the company's services, expand its global presence, and foster a culture of innovation. He emphasized the importance of customer-centricity, employee empowerment, and collaboration.
Kurien's leadership style was characterized by his hands-on approach, open communication, and focus on building strong relationships with stakeholders. He encouraged a culture of continuous learning and development, promoting a sense of ownership and accountability among employees. Overall, his leadership style exemplifies the qualities of a transformational leader.
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As part of the HR planning process, the manager begins by assessing the current labor situation at his/her company. Essentially, this means:
A. preparing job analyses.
B. preparing job descriptions.
C. preparing job specifications.
D. taking an inventory of current employees and their capabilities.
Answers
D. taking an inventory of current employees and their capabilities. Assessing the current labor situation at a company involves taking stock of the existing workforce and evaluating their skills, qualifications, and performance.
This allows managers to identify any gaps in the workforce that need to be filled, as well as opportunities for employee development and advancement. The process typically involves conducting a comprehensive review of the current workforce, which may include gathering data on job titles, responsibilities, performance evaluations, and training needs. By taking an inventory of current employees and their capabilities, managers can make informed decisions about staffing levels, recruitment needs, and workforce development strategies to ensure the organization has the right talent in the right positions to meet its goals and objectives.
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which of the following analysis or statistical techniques helps predict buyers' purchasing patterns? chi-square test market-basket analysis cluster analysis regression analysis
Answers
Market-basket analysis helps predict buyers' purchasing patterns.
Market-basket analysis is a statistical technique that examines the relationship between products that are frequently purchased together. It is commonly used in retail and e-commerce industries to identify associations and patterns in consumer buying behavior. By analyzing transaction data, market-basket analysis can uncover which items are frequently purchased together, providing insights into customer preferences, cross-selling opportunities, and predicting future purchasing patterns.
Therefore, out of the options provided, market-basket analysis is the technique that specifically focuses on predicting buyers' purchasing patterns.
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