N04 HL P1 Q5 Payback Calculation Year Machine A $ Machine B $ 1 45‚000 25‚000 Part of 2 20‚000 (0.57 of 35‚000) 35‚000 Part of 3 - 25‚000 (0.45 of 55‚000) Investment 65‚000 85‚000 1 + 0.57 = 1.57 (Machine A has payback period of 1.57 years) 2 + 0.45 = 2.45 (Machine B has payback period of 2.45 years) Accounting Rate of Return Calculation Machine A $ Machine B $ Net Return 155‚000 205‚000 Total Return-Investment 155‚000 – 65‚000 = 90‚000 205‚000 – 85‚000 = 120‚000
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**What is NPV?** a) If the value of NPV is greater than 0‚ then the project is a go! In other words‚ it’s profitable and worth the risk. b) If the value of NPV is less than 0‚ then the project isn’t worth the risk and is a no-go. So NPV takes risk and reward into consideration‚ which is why we use it in the world of corporate finance and capital budgeting. **Example** In order for us to calculate NPV‚ let’s use the following example. Suppose we’d like to make 10% profit on a 3
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before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to support your answer. 2. Assume that the after-tax required rate of return for Deer Valley is 8%‚ the income tax rate is 40%‚ and the MACRS recovery period is 10 years. Compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the
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Keystone XL pipeline will be great for United States economy because it will bring more taxes to government from oil companies and public. However‚ the effect on the environment‚ economy and residents of America are destructive. The things through which people and environment will be affected are: Water‚ forest destruction‚ disease. First‚ the Keystone XL pipeline would travel through rivers such as Missouri river‚ Yellowstone‚ and Red rivers. Two million of population is depended on these rivers
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FIG(2) $ MBA6- MF The need to produce new products was becoming evident‚ as sales and net income were beginning to level off in the last two years‚ (1991 and 1992). The profitability ratio (net profit on sales) was decreasing a little bit from 5% to 4.8%. Phelps Toy Company had then to consider the advisability of adding a new product to its line. After doing market research and analysis of possible products‚ Mr. Barnes‚ who was in charge of new product development‚ decided that baseball cards market
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New Heritage Doll Company: Capital Budgeting Teaching Note NPV Analysis for Match My Doll Clothing Line Extension TN Exhibit 1 2010 Revenue 2011 4‚500 2012 2013 2014 2015 2016 2017 2018 2019 2020 9‚082 9‚808 10‚593 11‚440 12‚355 13‚344 14‚411 6‚860 8‚409 52.4% 22.6% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 575 575 587 598 610 622 635 648 660 674 2‚035 3‚404 4‚291 4‚669 5‚078 5‚521 6‚000 6‚519 7‚079 7‚685 0.4522 0.4962 0.5103 0.5141 0.5178 0.5212 0
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Republic Act No. 10172 Implementing Rules and Regulations Republic of the Philippines OFFICE OF THE CIVIL REGISTRAR GENERAL National Statistics Office Manila ADMINISTRATIVE ORDER NO. 1‚ SERIES OF 2012 Subject: RULES AND REGULATIONS GOVERNING THE IMPLEMENTATION OF REPUBLIC ACT NO. 10172 (An Act Further Authorizing the City or Municipal Civil Registrar or the Consul General to Correct Clerical or Typographical Errors in the Day and Month in the Date of Birth or Sex of a Person Appearing in the
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Identifying Pb+2: 1) Took 2mL of my unknown solution and added 2 drops of HCl and got white ppt which correlates with the positive control. 2) Centrifuged the ppt and soln‚ then discarded soln and washed ppt and centrifuged again. 3) I added 2mL of H2O‚ put the test tube in the hot water bath and stirred for 3 minute with a stirring rod. 4) I then decanted the solution into another test tube. 5) I added one drop of 6M acetic acid and 3 drops of 1M K2CrO4‚ which formed a positive confirmation where
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the signing of executive orders by the new administration. The White House said that U.S steel is not required for the construction of the Keystone XL pipeline‚ despite the executive order that the president signed. The Keystone XL pipeline is a tool‚ that is globalizing North America; it is further connecting the United States and Canada‚ using a product that we all use‚ oil. Mercedes-Benz is recalling about 1 million cars and SUVs‚ because of a starter part that can overheat and cause fires. This
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RUNNING HEAD: Contribution Margin and Breakeven Analysis Simulation Contribution Margin and Breakeven Analysis Simulation Juan Vázquez-Nieves‚ RN‚ BSN James Ciaramella University of Phoenix Contribution margin and breakeven analysis proved to be challenging‚ once again I’m face to interpret what I believe to be true. First going over the assign simulation was demanding to the point of taking the simulation three times or more‚ latter the article also proved to be a challenging in the attempts
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