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NEW QUESTION: 1
Lugar Industries is considering an investment in a proposed project which requires an initial expenditure of
$100,000 at t = 0. This expenditure can be depreciated at the following annual rates:
tDepreciation Rate
120%
232%
319%
412%
511%
66%
The project has an economic life of six years. The project's revenues are forecasted to be $90,000 a year.
The project's operating costs (not including depreciation) are forecasted to be $50,000 a year. After six years, the project's estimated pre-tax salvage value is $10,000. The company's WACC is 10 percent, and its corporate tax rate is 40 percent. What is the project's net present value (NPV)?
A. $38,840
B. $45,453
C. $33,843
D. $34,667
E. $31,684
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The cash flows for each of the years are as follows:
0-100,000
1 [90,000 - 50,000 -(100,000)(0.20)](1-0.4)+(100,000)(0.20)= 32,000
2 [90,000 - 50,000 -(100,000)(0.32)](1-0.4)+(100,000)(0.32)= 36,800
3 [90,000 - 50,000 -(100,000)(0.19)](1-0.4)+(100,000)(0.19)= 31,600
4 [90,000 - 50,000 -(100,000)(0.12)](1-0.4)+(100,000)(0.12)= 28,800
5 [90,000 - 50,000 -(100,000)(0.11)](1-0.4)+(100,000)(0.11)= 28,400
6 [90,000 - 50,000 -(100,000)(0.06)](1-0.4)+(100,000)(0.06) + (10,000)(1 - 0.4) = 32,400 Enter the cash flows and solve for the NPV = $38,839.56.
NEW QUESTION: 2
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some questions sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You are developing an ASP.NET Core MVC web application. The landing page of the application contains over 100 small JPEG images, including many images that have embedded text.
Mobile device users report performance issues when loading the page. You debug the application and determine that the number of HTTP requests is causing the issue.
You need to improve the performance of the landing page.
Solution: Convert the images to SVG.
Does the solution meet the goal?
A. No
B. Yes
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Converting the images to Scalable Vector Graphics (SVG) does not reduce the number of HTTP requests.
NEW QUESTION: 3
Which of the following tolerance groups should every company code always have? Choose the correct answer.
A. Defined
B. Named
C. Blank
D. Special
Answer: C
NEW QUESTION: 4
DRAG DROP
Answer:
Explanation:
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