Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided.)




Initial investment (for two hot air balloons) $ 399,000
Useful life 9 years
Salvage value $ 48,000
Annual net income generated 30,324
BBS’s cost of capital 8 %

Assume straight line depreciation method is used.

Required:
Help BBS evaluate this project by calculating each of the following:

1. Accounting rate of return. (Round your answer to 2 decimal places.)
2. Payback period. (Round your answer to 2 decimal places.)
3. Net present value (NPV). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.)
4. Recalculate the NPV assuming BBS's cost of capital is 11 percent. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.)

I'm mostly confused on NPV

Answers

Answer 1

The accounting rate of return is 7.6%, the payback period is 5.755 years, the Net present value is $58,072, and the net present value(11%) is $3611.

What is NPV?

The Net Present Value (NPV) is a corporate finance technique for analyzing the viability of an investment or a firm. It's the disparity between the anticipated cash flows and the initial investment. Let's look more closely at NPV.

We can calculate the accounting rate of return as follows:

Accounting rate of return = (Annual net Income/ Average Investment)×100

=(30,324/399,000)×100

= 7.6%

For Payback period:

Payback = Initial investment/ Annul cash flow

Annual cash flow = Annual net income + Depreciation

Deprecition = cost - salvage value/useful life

= (399,000-48,000)/9

= $39,000

Annual cash flow = 30,324 + 39,000 = 69324

Payback= 399,000/69324

= 5.755 years

For NPV:

NPV = Total present value of investment - initial investment

= 69324×PVIFA(8%, 9 years)+48,000×PV(8%, 9 years) - 399,000

= 69324×6.2469+24,011.95 - 399,000

= $58,072

For Net value recalculate if the cost of capital is 11%

NPV = Total present value of investment - initial investment

= 69324×PVIFA(11%, 9 years)+48,000×PV(11%, 9 years) - 399,000

= 69324×5.5370+18,764.39 - 399,000

= 3610.988

= $3611

Thus, the accounting rate of return is 7.6%, the payback period is 5.755 years, the Net present value is $58,072, and the net present value(11%) is $3611.

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Related Questions

I WILL GIVE YOU 20 POINTS TO THOSE WHO ANSWER THIS QUESTION RIGHT NOOOO SCAMS AND EXPLAIN WHY THAT IS THE ANSWER

Answers

Answer:

x=124

y=124

Step-by-step explanation:

if the number next to x is 56

180-56=124

x=124

and x=y

if that is the whole question

Full question and options​

Answers

Answer:

D

Step-by-step explanation:

A triangle is always determined by the names of its angles. If, for any reason, you wanted to label it by its side names(which I don't even think you can do but assuming you wanted to), you dont even have the names for all three sides here. So, it can only be d. A, X, and T are the three angle names for this triangle, so this is triangle ATX or AXT.

Answer:

ATX (option d)

Step-by-step explanation:

Sides of any polygon are called as vertices.

Vertices of the triangle or endpoints of the sides of the polygon are A, T and X.

Triangles can also be classified by their angles. In an acute triangle all three angles are acute.

HELP ME PLEASE!!

Given: AABC is equilateral
Find the length of segment BC.

Answers

Answer:

D

Step-by-step explanation:

1) if sin(ACB)=BC/BD, then BC=BD*sin(ACB);

2) m(ACB)=60°, then sin(ACB)=√3/2, then

3) BC=5/(√3/2)=10/√3 or 10√3/3.

Dawn can paint of a wall in 1 hour. How
many walls can she paint in 2 hours?

Answers

Dawn can paint 2 walls in two hours according to ur question

Please help me with this question

Answers

Where is the question?

is (x-4) a factor of f(x)=x^3-2x^2+5x+1 explain your reasoning

Answers

Answer:

No.

Step-by-step explanation:

It's simpler than you might expect.

If [tex](x - 4)[/tex]  is a factor, then it means that it the function [tex]f(x) = x^3 - 2x^2 + 5x + 1[/tex] can have [tex](x - 4)[/tex] factorised out.

This means that we can say [tex](x - 4) = 0[/tex]

Therefore [tex]x = 4[/tex]

If we put [tex]x = 4[/tex] into the equation:

[tex]f(4) = (4)^3 - 2(4)^2 + 5(4) + 1\\= 64 - 32 + 20 + 1\\= 53[/tex]

We didn't get 0, therefore it isn't a factor!

The expression 6 (Squared3)×4 (Squared 2) is equivalent to which of the following numerical expressions?


18 x 8

216 x 16

24 (Squared 6)

(6 x 4) (Squared5)

Answers

Answer:

216 x 16

Step-by-step explanation:

Given

6³ x 4²

Simplify into prime factors.

(2 x 3)³ x (2²)²2³ x 3³ x 2⁴2⁷ x 3³128 x 273456

Now, for it to be equivalent, on dividing 3456 by the product of the expression, the quotient should be 1.

Evaluating the options

18 x 8

3456 ÷ (18 x 8)3456 ÷ 14424Incorrect

216 x 16

3456 ÷ (216 x 16)3456 ÷ 34561Correct

24⁶

3456 ÷ 24⁶3456 ÷ 191102976Answer will be less than 1, so this isn't itIncorrect

(6 x 4)⁵

3456 ÷ (6 x 4)⁵3456 ÷ (24)⁵3456 ÷ 7962624Here also the quotient will be less than 1Incorrect

216 x 16 is the correct answer

Riya has 5 times as many apples as Tyler. Together they have 24 apples. How many apples does Riya have?​

Answers

Answer:

Riya have 20 apples

Step-by-step explanation:

Let, Tyler have x apples

Then, Riya have 5x apples

Now, From the question,

5x + x =24

or, 6x =24

or, x = 24/6

or, x = 4

Tyler have 4 apples

Again,

Riya have 5x apples

=5*4

=20

Therefore, Riya have 20 apples

Product of 630 and 7.2X 10 to the 4th power

Answers

Put it into your calculator

Product means multiply [tex]\times[/tex]

4th power means [tex]10^4[/tex]

[tex]630\ \times\ 7.2\times10^4 = 45360000 = 4.536\times10^7[/tex]

Two angles are complementary (the sum of the two angles is 90°). The sum of the first
angle plus twice the second angle is 128°. Find the measures of the angles.

Answers

Answer:

A = 52º AND B=38º

Step-by-step explanation:

Let's call A and B the two angles.

First condition: A + B = 90º

Second cond: A + 2B = 128º

Subtract the first condition to the second: B = 38º

Replace the value of B in any of the 2 conditions; e.g. in the first.

A + 38º = 90º

A = 90º - 38º = 52º

What is the answer for -10+3--4+5?

Answers

the answer would be 2!

hromosome 13 in the human body contains a DNA molecule that is about 3.19 centimeters long.

What is the combined length of 102 of these molecules?

Answers

Answer:3,190 centimeters

Step-by-step explanation:

math is easy

Help please fast ong im begging

Answers

(x+5)(x+3) so the first one

Answer:

(x + 3)(x + 5)

Step-by-step explanation:

Find two numbers that multiply to 15 and add to 8.

The numbers are 3 and 5.

x² + 8x + 15 = (x + 3)(x + 5)

What is the volume of this container?

Answers

Answer:

6000 cm^3

Step-by-step explanation:

2(10 * 20 * 15) = 6000

{( - 1, 2), (0, 3), (1, 4)}
Which algebraic equation gives the correct rule for the table?

Answers

Answer:

The rule for the input-output table below is: add 1.5 to each input number to find its corresponding output number. Use this rule to find the corresponding output numbers. To find each output number, add 1.5 to each input number. Then, write that output number in the table.

Rob and Mike are selling cookie dough
for a school fundraiser. Customers can
buy packages of white chocolate chip
cookie dough and packages of oatmeal
cookie dough. Rob sold 12 packages of
white chocolate chip cookie dough and
6 packages of oatmeal cookie dough for
a total of $192. Mike sold 6 packages of
white chocolate chip cookie dough and
12 packages of oatmeal cookie dough
for a total $222. What is the cost of one
package of white chocolate chip cookie
dough and one package of oatmeal
cookie dough?

Answers

The cost of one package of white chocolate chip cookie is $9 while the cost of one package of oatmeal cookie dough is $14.

What is an equation?

An equation is an expression used to show the relationship between two or more numbers and variables.

Let x represent the cost of white chocolate chip and y represent the cost of oatmeal dough, hence:

12x + 6y = 192   (1)

Also:

6x + 12y = 222    (2)

From both equations:

x = 9, y = 14

The cost of one package of white chocolate chip cookie is $9 while the cost of one package of oatmeal cookie dough is $14.

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Adam says 0.25 is smaller then 2
_
5
Explain why he is correct

Answers

Step-by-step explanation:

0.25 = 1/4 is not reach to 1

2 is an integral number.

So, 0.25 is smaller than 2

Answer:

2/5 is equal to 0.40, which is higher than 0.25

Step-by-step explanation:

2 ÷ 5= 0.4 which is the same as 0.40

What is the answer?

2/5 + 3/4​

Answers

2/5+3/4

Take LCM

5×4=20

Now

2/5+3/48+15/2023/20

Answer:

23/20

Step-by-step explanation:

2/5 + 3/4

LCM = 5 * 4 = 20

=》2/5 * 4/4 = 8/20

=》3/4 * 5/5 = 15/20

So,

2/5 + 3/4

= 8/20 + 15/20

= 23/20

_________

Hope it helps ⚜

Help help help help math
Math

Answers

Answer:

Hope the picture will help you. And Please Mark me brilliant!!!

Amelia is conducting a survey in their neighborhood about noise pollution.

Choose three things they should do to get a representative sample and check that it is representative.

Answers

Amelia should randomly choose people only in their block.

Amelia should ask people what part of the neighborhood they live in.

Amelia should ask people their age.

What is representative sample?

A representative sample are data collected from small group of individual which can be use to represent a large population of people so as to reach a conclusion.

Most researcher tend to make use of representative sample when they want to draw a conclusion as it save time and reduce the stress of having to carryout survey on a larger population.

Therefore Amelia should randomly choose people only in their block.

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Answer:

heres what i got!

need a good explanation, i dont get how to get the answer.

Fifteen years ago, Russell bought his house for $141,000. The house’s property value has decreased by 1.6% per year ever since then. If Russell sells his house, how much is it worth, to the nearest hundred dollars?
a.
$110,700
b.
$107,200
c.
$67,100
d.
$37,900

Answers

Answer:

141000 * (1 - 0.016)^15 = 110699.48 = A 110700

Step-by-step explanation:

1st year depreciation = 141000 -  (141000 * 0.016) = 138744

2nd year depreciation = 138744 - (138744 * 0.016) = 136524.096

3rd year depreciation = 136524.096 - (136524.096 * 0.016) = 134339.710464

etc. unitl you reach the 15th year

Basically we calculate 1.6% of the current value of the house and subtract that from the current value for each year for 15 years.

The equation used in the answer is a faster way to approach your answer instead of calculating for each year.

You'd multiply your initial value by the difference in percentage (note well that since it is decreasing in value we subtract the decimal equivalent to 1.6% which is 0.016, from 1 where one represents 100% and then raise the difference gained to the power of the amount of years which would be 15.

It takes 4 people 6 days to build a wall. How long would it take 6 people to build the same wall?

Answers

Answer:

1 day

Step-by-step explanation:

4=6

2=3

2*3=6

so 3/3=1

It would take 6 people to build the wall 1 day

It takes 4 days to build the same wall with 6 people based on the given ratio.

What are the ratio and proportion?

The ratio is the division of the two numbers.

Proportion is the relation of a variable with another. It could be direct or inverse.

As per the given,

It takes 4 people 6 days to build a wall.

The number of people days taken = 4 x 6 = 24 people takes

This means if one person wants to build them it takes 24 days.

For 6 people the time taken will be 24/6 = 4 days.

Hence "It takes 4 days to build the same wall with 6 people based on the given ratio".

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-10.3r = 1.03 what is R?

Answers

Answer:

r= -0.1

Step-by-step explanation:

the correct answer is r=0.1

Write the following expression in terms of logs of x,y and z
Show steps

Answers

We can write the log expression in terms of the log of x, y, and z as expression 1/2(logx+2logy-8logz).

What is a logarithm?

It is another way to represent the power of numbers and we say that 'b' is the logarithm of 'c' with base 'a' if and only if 'a' to the power 'b' equals 'c'.

[tex]\rm a^b = c\\\\log_ac = b[/tex]

We have an expression in logarithm:

[tex]=\rm log\sqrt{\frac{xy^2}{Z^8} }\\\\=log(\frac{xy^2}{Z^8})^{\frac{1}{2} }\\\\=\frac{1}{2}log(\frac{xy^2}{Z^8})[/tex]                         [tex](\rm loga^b = (b)log(a))[/tex]

[tex]\rm\frac{1}{2} (log(xy^2)-logz^8)[/tex]              [tex](\rm log(\frac{a}{b} )= loga - logb)[/tex]

[tex]\rm\frac{1}{2} (log(x)+log(y^2)-logz^8)[/tex]   [tex](\rm logab = loga+logb)[/tex]

[tex]\rm\frac{1}{2} (log(x)+2log(y)-8logz)[/tex]

Thus, we can write the log expression in terms of the log of x, y, and z as 1/2(logx+2logy-8logz).

Learn more about the Logarithm here:

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what is 3/4 in a percent

Answers

Answer:

75%

Step-by-step explanation:

Convert the fraction into a decimal number. Multiply the obtained decimal number by 100, to get a percent value.

Answer:

3/4 in a percent is 75%

Step-by-step explanation:

To change a fraction to a decimal you divide the numerator by the denominator. In this case that would be 3 divided by 4 which is 0.75, to change the decimal to a percent you move the decimal two places to the right.

sorry for not putting the picture

Answers

Answer:

Answer bellow

Step-by-step explanation:

9cm⋅12cm=108cm²

17cm=108cm²

7cm=108cm²

9cm=108cm²

3cm=108cm²

Answer:

407

Step-by-step explanation:

9 x 17 = 153

9 x 16 = 135

(15 x 14) x 1/2 = 105

add em up...

153 + 135 + 105 = 407

Hope this helps! Please let me know if you need more help or think my answer is incorrect. Brainliest would be MUCH appreciated. Also remember to rate answers to help other students, While leaving thanks to answers that help you. Have a great day!

How do I get this problem started

Answers

So first in a separate sheet of paper you have to look for how many members of fam and friends does Kimberly have. Then write down the amount of money she has in total.
Then subtract 120-36 cause she buys the book.
Which equals. 84
Then you have to subtract 84 from what I said at the beginning

33. Construct a truth table to show that the following argument is valid.
pv q
~p
_____
.: Q


pleaseeeeeee

Answers

Answer:

  see attached

Step-by-step explanation:

Perhaps you want to show that P∨Q will be equal to Q when ¬P is true. Attached is a truth table that shows this is the case.

__

This is simply a restatement of the logic of the OR function. When one its inputs is a logical 0 (false), the output depends on the other input(s).

which expression is equivalent to (x^9yz^4)^5

Answers

Applying the rule of exponent, the equivalent expression is: [tex]x^{45}y^{5}z^{20}[/tex]

What is the Rule of Exponents?

One of the rules of exponents is given as, [tex](xy)^m=(x^m)(y^m)[/tex].

Therefore, given:

(x9yz4)5

To find the equivalent expression, apply the rule of exponents as shown below:

[tex](x^9yz^4)^5=(x^{9*5})(y^5)(z^{4*5})[/tex]

[tex](x^9yz^4)^5=x^{45}y^5z^{20}[/tex]

Therefore, applying the rule of exponent, the equivalent expression is:

[tex]x^{45}y^{5}z^{20}[/tex]

Learn more about the rule of exponents on:

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survey showed that the probablity that an e
claimed that he could help place any employee in
id in a job that Is sultable for the employee Is 0.65. A psychometric test consultant
company decides to take this test. The test has an a
based on the result of a psychometric test. An employee working in a particular
rate of 70%. This data is represented in the tree diagram.
fest predicts that
the employee is in
probability that
the employee
is in the
test precicts t
wrong job
the employee is in
the wrong job
Select the correct answer.
Which of these probability values fit the tree diagram?
RA) = 0.35, P(6) = 0.65, RQ) = 0.70, P(O) = 0.30, P(E) = 0.30, P(A) = 0.70
O B. PA) = 0.35, P(6) = 0.65, A(Q) = 0.70, R,D) = 0.30, A8) = 0.70, RA = 0.30
O c.
14) = 0.35, P(6) = 0.65, PQ) = 0.30, P(O) = 0.70, RJ8) = 0.70, AA = 0.30
= 0.30, PA = 0.70

Answers

Answer:

A survey shows that the probability that an employee gets placed in a suitable job is 0.65. So, the probability he is in the wrong job is 0.35.The test has an accuracy rate of 70%. So, the probability that the test is inaccurate is 0.3. Thus, the probability that someone is in the right job and the test predicts it wrong is The probability that someone is in the wrong job and the test is right is 

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