Sheridan Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $371,700. The estimated fair values of the assets are land $70,800, building $259,600, and equipment $94,400. At what amounts should each of the three assets be recorded?

Answers

Answer 1

Answer:

Land = $61,950

Building = $227,150

Equipment = $82,600

Explanation:

Total Asset Fair Value = $70,800+$259,600+$94,400

Total Asset Fair Value = $424,800

Recorder Amount

Land = [$70,800/$424,800]$371,700

Land = $61,950

Building = [$259,600/$424,800]$371,700

Building = $227,150

Equipment = [$94,400/$424,800]$371,700

Equipment = $82,600


Related Questions

In market-basket terminology, ________ describes the probability that two items will be purchased together.

Answers

The answer would be support


Entrepreneurs generally think differently about resources than do employee-managers in which of the following ways?

Answers

Managers want larger budgets; entrepreneurs work to do more with less.

How do entrepreneurs approach resources differently from employee-managers?

Entrepreneurs have a distinct mindset when it comes to resources compared to employee-managers. While managers often seek larger budgets to accomplish their goals, entrepreneurs tend to focus on doing more with less.

This difference in perspective stems from the inherent nature of entrepreneurship which involves taking calculated risks and maximizing efficiency in resource allocation.

Entrepreneurs understand that resources, such as capital, time, and manpower, are limited and valuable. They recognize that acquiring substantial budgets may not always be feasible, especially in the early stages of a venture.

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A cover letter should _____ a résumé. replace complement contradict be sent separately from

Answers

Answer:

complement

Explanation:

A cover letter or a Job application letter and the resume are sent together to potential employers. The cover letter details the position being applied for and the applicant's specific skills and experiences for that position. The letter allows the applicant to elaborate on why they are the best candidate for the job.

A resume provides the technical aspects of the applicant, but the cover letter show shows their personality. The applicant demonstrates their passion, interest, and why hiring them is the best decision in the cover letter. Therefore, a cover letter complements the resume.

As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider in managing the multi-cultural and diversified workforce in Ghanaian business organizations.

Answers

Communication, ethics, conflict management, learning, and inclusion are some issues to consider when leading a multicultural and diversified workforce in Ghanaian business organizations.

How do you lead a multicultural team?

In order to foster a culture that celebrates variety and individuality, it is crucial that there be a number of rules and procedures that concentrate on organizational ethics. The manager must be aware of the requirements of the teams, encourage learning, and include the staff in organizational procedures.

Therefore, the sharing of knowledge, learning, and creativity can benefit from a diverse culture.

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Which two statements about financial service companies are true?

Answers

Answer:

b. and d.

Explanation:

Why should a global marketing manager consult local attorneys in other countries before creating a marketing campaign abroad?

Answers

Because it could be against the law and they can help you with marketing

please can see answer this fast. Briefly explain how the market mechanism relieves excess demand.​

Answers

Answer:

The decrease in supply creates an excess demand at the initial price. a. Excess demand causes the price to rise and quantity demanded to decrease. ... A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined.

Hope it helps!!!

please pasagot ang
hirap kasi ​

please pasagot anghirap kasi

Answers

Answer:

1)32/100×10000

=3200

2)13/100×10000

=1300

3)15/100×10000

=1500

4)3/100×10000

=300

5)4/100×10000

=400

6)12/100×10000

=1200

7)5/100×10000

=500

8)2/100×10000

=200

9)14/100×10000

=1400

the total amount is 3200+1300+1500×300+400+1200+500+200+1400

=10000

is this the way...I am sorry if it is wrong...was just giving it a try..

One of the most important features of a filing and record keeping system is that it works for you and meets your needs.? True or false

Answers

Answer:

True

Explanation:

If it doesn't work for your needs it's pretty much useless. If it doesn't work what's the point.

a Identify one factor that could result in a higher break-even point
b Calculate the forecast average monthly profit figures for the two menu
options.

a Identify one factor that could result in a higher break-even pointb Calculate the forecast average

Answers

1. One factor that could result in a higher break-even point is a reduced contribution margin per unit (or ratio).

2. The forecast average monthly profit figures for the two menu options are as follows:

                                    Current     Proposed

Revenue                    $48,000      $33,600

Variable costs              12,000          9,600

Contribution margin $36,000     $24,000

Fixed costs                 28,000       24,000

Net income                $8,000               $0

What is the break-even point?

The break-even point is the sales level that equates the total revenue to the total costs (fixed and variable).

When the break-even point is reached, there are no profits or losses.

To generate some profits, the sales level must exceed the break-even point.

Current Menu Option:

Revenue per week (600 at $20)  = $12,000

Total monthly revenue = $48,000 ($12,000 x 4 weeks)

Average variable cost per meal at $5 = $3,000

Total monthly variable cost = $12,000 ($3,000 x 4 weeks)

Overhead cost per week = $7,000

Total monthly overhead cost = $28,000 ($7,000 x 4 weeks)

Proposed Menu Option:

Revenue per week (600 at $14)  = $8,400

Total monthly revenue = $33,600 ($8,400 x 4 weeks)

Average variable cost per meal at $4 = $2,400

Total monthly variable cost = $9,600 ($2,400 x 4 weeks)

Overhead cost per week = $6,000

Total monthly overhead cost = $24,000 ($6,000 x 4 weeks)

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Which of the following is a similarity between a production orientation and sales orientation

Answers

The similarity between a production orientation and a sales orientation is that both lack an understanding of the needs and wants of the marketplace.

What is a production orientation?

This orientated organisation operates a mass production model and streamlines this production process for its product offering, that is, the orientation approach assumes that its customers value price and focuses on lowering production costs to meet such price needs of this customer base.

What is a sales orientation?

It is business model that is focused on making the best product and services without considering customer's wants or needs, this orientation approach uses aggressive, outbound sales tactics and marketing promotions to drive revenue.

Therefore, the similarity between a production orientation and a sales orientation is that both lack an understanding of the needs and wants of the marketplace.

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Assign the correct ICD-10-CM
diagnosis codes and ICD-10-PCS
procedure codes for the following: Anemia due to malignant neoplasm of the pylorus (Note: sequencing is important)

Answers

The correct ICD-10-CM diagnosis code and the ICD-10-PCS procedure code for Anemia due to malignant neoplasm of the pylorus are Code D63.0 and Code D64. 9.

What are the ICD-10-CM diagnosis codes and ICD-10-PCS procedure codes?

The ICD-10-CM diagnosis codes and ICD-10-PCS procedure codes are the harmonized US health codes used for diagnosis, treatment, and reimbursement purposes. ICD-10-PCS codes support data collection, payment and electronic health records in hospitals.

Thus, the ICD-10-CM diagnosis codes and ICD-10-PCS procedure codes, which are important to ensure harmonized diagnosis, treatment, and reimbursement for cases of Anemia, are Code D63.0 and Code D64. 9..

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he newspaper reported last week that Bennington Enterprises earned $34.03 million this year. The report also stated that the firm’s return on equity is 12 percent. The firm retains 80 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)

Answers

Answer:

(A) 9.6%

(B) 37,296,880

Explanation:

Current earnings for Bennington Enterprise is $34.03 million

The ROE is 12 percent

= 12/100

= 0.12

Retention ratio is 80 percent

= 80/100

= 0.8

(A) The firms earning growth rate can be calculated as follows

= 0.8× 0.12

= 0.096×100

= 9.6%

(B) Next year earnings can be calculated as follows

= 34,030,000 × (1+0.096)

= 34,030,000× 1.096

= 37,296,880

Marilyn wants to use a non-price competitive marketing strategy to gain more customers. Which of the following might she use?
lowering the cost of services
raising product prices
offering a promotion
underbidding competitors

Marilyn wants to use a non-price competitive marketing strategy to gain more customers. Which of the

Answers

Since Marilyn wants to use a non-price competitive marketing strategy to gain more customers, the option that she might use is  option c: offering a promotion

What are non-price competition strategies?

Non-price competition is a strategy that emphasizes on superior product quality, a unique selling proposition, a great location, and good service in place of cheaper pricing in order to draw clients and boost sales. It aids in brand differentiation and consumer acquisition. 29 Sept 2022

Note that a variety of strategies are used in marketing, including product differentiation, advertising, promotion, and distribution and as such, option C is correct.

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Automaton, Inc.'s current stock price is $57. Analysts forecast a price of $45 in one year. Automaton's Beta is 1.2. The Risk-Free Rate is 3% and Return of the Market Portfolio is 7%. Assuming Automaton pays a $5 dividend at the end of the year, what is the Holding Period Return?

Answers

Answer:

-12.28%

Explanation:

Holding period return is the total return on an investment in the period when the investment is held by an investor.

Holding period return = price appreciation + dividend yield

price appreciation = (price in on year - initial price) / initial price

(45 - 57) / 57 = -0.21053 = -21.05%

dividend yield = dividend / initial price

$5 / 57 = 0.0877 = 8.77

Holding period return = -21.05% + 8.77 = -12.28%

What is the relationship between policies to strategies

Answers

While policies and strategies are distinct concepts, they are interdependent and complement each other in achieving organizational goals.

Strategies are the broad, long-term plans formulated by an organization to achieve its objectives. They outline the overall approach, direction, and competitive positioning of the organization. Strategies are high-level and provide a framework for decision-making and resource allocation.

Policies, on the other hand, are specific guidelines, rules, or protocols that dictate how decisions and actions should be taken within an organization. They are more operational and focus on detailing the procedures and practices required to implement the strategic goals and objectives.

The relationship between policies and strategies is that policies support the execution of strategies. Strategies provide the overarching vision and direction, while policies provide the specific guidelines and rules that guide the day-to-day operations aligned with the strategic objectives.

Policies help ensure consistency, efficiency, and compliance with the strategic intent, enabling the organization to effectively implement its strategies.

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Julia owns a sub sandwich shop and has the following costs each month:

Labor costs (management & workers) $8,000
Insurance = $900
Rent = $800
Utilities $300
Average cost of ingredients/ packaging for each sub= $1.11

1-Julia sells subs for$6 each how many subs will she need to sell to break even each month based on the costs listed above?

2-in order to make that break even number more manageable. Julia has found a new meat and vegetable distributor that can lower the average cost of ingredients /packaging down to $0.89 per sub if all of the other costs remain the same what would the new breakeven point be?

3-Julia decides to reposition her sub shop as “upscale” with fresher meats and vegetables along with premium packaging for the subs her new price point is $10 per sub but her variable costs have rise into $4.12 per sub if only the other cost remain the same what is the break even point now?

Answers

1) She needs to sell 2045 subs.

Calculus

Given that Julia owns a sub sandwich shop and has the following costs each month:

Labor costs (management & workers) $8,000.Insurance = $900.Rent = $800.Utilities $300.Average cost of ingredients/packaging for each sub= $1.11.

To determine:

1- If Julia sells subs for $6 each, how many subs will she need to sell to break even each month based on the costs listed above;

2- If, in order to make that break even number more manageable, Julia has found a new meat and vegetable distributor that can lower the average cost of ingredients /packaging down to $0.89 per sub if all of the other costs remain the same, what would the new break even point be; and

3- If Julia decides to reposition her sub shop as “upscale” with fresher meats and vegetables along with premium packaging for the subs, her new price point is $10 per sub, but her variable costs have rise into $4.12 per sub if only the other cost remain the same, what is the break even point now;

the following calculations must be made:

1)

8000 + 900 + 800 + 300 = Fixed costs10,000 = Fixed costs10,000 + 1.11 x 1000 = 11,1106 x 1000 = 600010,000 + 1.11 x 2000 = 12,2206 x 2000 = 1200010,000 + 1.11 x 2200 = 12,4426 x 2200 = 1320010,000 + 1.11 x 2050 = 12,275.56 x 2050 = 1230010,000 + 1.11 x 2040 = 12,264.46 x 2040 = 1224010,000 + 1.11 x 2045 = 12,269.956 x 2045 = 12270

Therefore, she needs to sell 2045 subs.

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select a business from any of three business sectors​

Answers

A business from any three business sectors is industry. Businesses clearly differ in what they do.

Businesses are frequently classified according to their industry or sector. An industry is a group of businesses which are related in terms of their primary activity, such as car manufacturing or grocery sales. Smaller industries (such as car manufacturing) can be grouped to larger industry sectors (such as the manufacturing sector in general). An individual business is classified as belonging to a specific industry based on its primary activity.

As a result, this company would be classified as belonging to the automobile manufacturing industry rather than financial services.

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Stam Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials (in March) $ 33,600 $ 41,900 Direct labor (in March) 24,600 20,300 Applied overhead (March) 12,300 10,150 Costs during April Direct materials 139,600 226,900 $ 102,300 Direct labor 94,200 161,500 107,300 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Additional Information Raw Materials Inventory has a March 31 balance of $91,500. Raw materials purchases in April are $504,600, and total factory payroll cost in April is $388,300. Actual overhead costs incurred in April are indirect materials, $52,300; indirect labor, $25,300; factory rent, $34,300; factory utilities, $21,300; and factory equipment depreciation, $55,600. Predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 cash in April.

Answers

Based on the cost of production by Stam Company, the overhead rate which is applied to the jobs are:

Data and Calculations:

                                                       Job 306           Job 307        Job 308

Balances on March 31

Direct materials used (in March)    $33,600         $41,900

Direct labor used (in March)           $24,600        $20,300

Overhead applied (March)              $12,300         $10,150

Costs during April

Direct materials used                     $139,000      $226,900     $102,000

Direct labor used                            $94,200       $161,500       $107,300

Overhead applied                           $55,600       $77,500       $52,500

                             ($94,200 × 50%)  ($161,500 × 50%)  ($107,300 × 50%)

Job 306 - $47,100

Job 307 - $80,750

Job 308 - $53,650

The overhead rate applied for Job 306 in April is:

= Direct labor cost x 50%

= 94,200 x 50%

= $47,100

The overhead applied for Job 307 in April is:

= 161,500 x 50%

= $80,750

The overhead for Job 308 in April is:

= 107,300 x 50%

= $53,650

Hence, based on the cost of production by Stam Company, the overhead rate applied to the jobs are calculated above.

The given question is incomplete, the complete question is-

Stam Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials (in March) $ 33,600 $ 41,900 Direct labor (in March) 24,600 20,300 Applied overhead (March) 12,300 10,150 Costs during April Direct materials 139,600 226,900 $ 102,300 Direct labor 94,200 161,500 107,300 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Additional Information Raw Materials Inventory has a March 31 balance of $91,500. Raw materials purchases in April are $504,600, and total factory payroll cost in April is $388,300. Actual overhead costs incurred in April are indirect materials, $52,300; indirect labor, $25,300; factory rent, $34,300; factory utilities, $21,300; and factory equipment depreciation, $55,600. Predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 cash in April.

Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal 4. Prepare a schedule of cost of goods manufactured for the month end April 30. Stam Company Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured.

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What processes are enzymes used in?; What are the 4 functions of enzymes?; What enzymes are used for protein?; How are enzymes involved in proteins?

Answers

Enzymes are used in various biological processes.

Enzymes are used in many biological processes, including metabolism, digestion, and cellular respiration. They are proteins that act as catalysts, which means they increase the rate of chemical reactions in cells without being used up or changed in the process. The four main functions of enzymes are:

To catalyze specific chemical reactions in cells.To speed up the rate of chemical reactions in cells.To lower the activation energy needed for a reaction to occur.To increase the specificity of chemical reactions, ensure correct reactants are brought together for the reaction to occur.

Different enzymes are involved in protein metabolism, including proteases. One of the main roles of enzymes in protein metabolism is to catalyze the hydrolysis of peptide bonds, which allows proteins to be broken down into smaller peptides and amino acids. This process is essential for the digestion of dietary proteins and the recycling of proteins within cells. Enzymes are also involved in the synthesis of proteins. In this process, amino acids are joined together through peptide bonds to form larger proteins.

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Based on 2 images which i have attached below answer the question plss

Based on 2 images which i have attached below answer the question plss
Based on 2 images which i have attached below answer the question plss

Answers

The journal entry to record the purchase of equipment on January 1 is :

Date           Account Title                                    Debit               Credit

Jan. 1          Equipment                                        $ 1, 280

                   Cash                                                                          $ 1, 280

How to record equipment purchase ?

Upon purchase of the equipment, an increase in assets is made through debiting the Equipment account with its total cost. A decrease in assets is then represented upon crediting the Cash/Bank account for the same amount which was used to cover the cost (i.e., cash or bank balance).

This means that we will debit Equipment for the amount of $ 1, 280 which was the cost of the equipment, then we credit the cash account for the same amount to show it has reduced.

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Which of the following is not true regarding continuous improvement? A. It applies to both service and manufacturing companies. B. It is used to reduce performance costs. C. It rejects the idea of “good enough.” D. It can be applied only to improve processes and products but not services and practices.

Answers

The statement that is not true is D. It can be applied only to improve processes and products but not services and practices.

What is Service Organization?

A service organization is an organization that offers its services rather than the products usually sold by manufacturing companies and resellers.

In a service organization the most large expense is the human cost also known as the salaries.

If it is a service or manufacturing company, the process can be improved for production of goods and the practice can also be improved.  

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Who Is Lil Loaded i want to know

Answers

Answer:

search it up

Explanation:

Answer:

he is a rapper dude. search it up

Explanation:

The topic sentence in each step of a process analysis should identify?

Answers

The topic sentence in each step of a process analysis should identify the reason for doing the step. The correct option is C.

What is the main function of a process analysis essay?

A process analysis essay explains how to carry out a task or how a process operates. The steps for writing a process analysis essay are the same regardless of the situation. The procedure is broken down into distinct, definite steps. A step-by-step process is used in almost everything writers do.

Product analysis is carried out as part of the Define Scope process to produce a comprehensive scope at the end. The goals and description of the product as stated by the client or sponsor are examined during the product analysis process. It is anticipated that analysis will lead to concrete project deliverables.

Thus, the ideal selection is option C.

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Your Question seems incomplete, most probably your complete question was:

The topic sentence in each step of a process analysis should identify:

a

the outcome of the step

b

the final product

c

the reason for doing the step

d

pitfalls of the step

1. From the given McDonald Prosperity case study, explain McDonald’s marketing strategy to increase the consumer attitude and respond to different cultural market segment (5 marks) 2. What other marketing strategy could McDonald introduce from the Chinese New Year Celebration? Please suggest and explain ONE strategy. (15 marks)

Answers

McDonald's routinely produces tasty hamburgers, crunchy fries, and frosty shakes that are in high demand in China. Digital marketing also favored their way.

What is Digital marketing?

The practice of encouraging brands to engage with potential customers over the internet and other digital communication channels is known as digital marketing, commonly referred to as online marketing.

This covers text and multimedia messaging as a marketing channel in addition to email, social media, and web-based advertising.

Inbound and digital marketing are frequently confused, and for good reason. Email and web content are only a couple of the many methods that are used in both digital marketing and inbound marketing.

Both are there to draw potential customers in through the so-called buyer's journey and turn them into paying clients. The relationship between the instrument and the aim, however, is seen differently in the two approaches.

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I need a an idea of followership introduction help me!

Answers

Followership refers to the role, behavior, and actions of individuals who are not in a leadership position, but rather, they support and collaborate with their leaders to achieve shared goals. Followership is an essential aspect of organizational success, as it complements leadership and fosters a harmonious work environment.

Effective followers exhibit characteristics such as being proactive, taking responsibility, and engaging in open communication with their leaders. They also possess the ability to think critically and provide valuable feedback for the betterment of the team. By embracing the principles of followership, individuals contribute positively to the overall performance and morale of the organization.

It is important to note that followership does not imply blind obedience or passivity. Instead, it involves active engagement and collaboration with leaders to achieve common objectives. In this dynamic relationship, leaders and followers must work together, learn from each other, and adapt to changing circumstances.

In conclusion, followership is a vital component of successful organizations and plays a significant role in accomplishing shared goals. By cultivating strong followership skills, individuals can effectively support their leaders, enhance team performance, and contribute to the growth and success of the organization.

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8) The term "fair market value" refers to
A) what an asset could be sold for today.
B) what you paid when you purchased an asset.
C) what an asset will be worth at some point in the future.
D) how the price of an asset has changed since its original purchase.

Answers

i just want points so just do C If you get it wrong be glad u still living

ABC Electronics Corporation Ltd. recently diversified its activities and started producing computers. It employed personnel at lower level and middle level. It has received several applications for the post of Commercial Manager-Computer Division. It could not decide upon the suitability of the candidate to the position, but did find that Mr. David is more qualified for the position than other candidates. Now the Corporation has created a new post below the cadre of General Manager i.e. Joint General Manager and asked Mr. David to join the Corporation as Joint General Manager. Mr. David agreed to it viewing that he will be considered for the General Manager's position based on his performance. Mr. Henery, the Deputy General Manager of the Corporation and one of the candidates for General Manager's position was annoyed with the management's practice. But, he wanted to show his performance record to the management at the next appraisal meeting. The management of the Corporation asked Mr. Smith, General Manager of Televisions Division to be the General Manager in-charge of Computer Division for some time, until a new General Manager is appointed. Mr. Smith wanted to switch over to the Computer Division in view of the prospects, prestige and recognition of the position among the top management of the Corporation. He viewed this assignment as a chance to prove his performance. The Corporation has the system of appraisal of the superior's performance by the subordinates. The performance of the Deputy General Manager, Joint General Manager and General Manager has to be appraised by the same group of subordinates. Mr. David is a stranger to the system as well as its Modus Operandi. Mr. Smith and Mr. Henery were competing with each other in convincing their subordinates about their performance and used all sorts of techniques for pleasing them like promising them a wage hike, transfers to the job of their interest, promotions etc. However, these two officers functioned in collaboration with a view to pull down Mr. David.

Answers

There should be a structured evaluation tool to analyze the performance appraisal

What is performance appraisal?

The other parts of the question include:

a. How do you evaluate the workers appraisal in this case?

b. Do you suggest any technique to avert politics creeping into the performance of appraisal?

It should be noted that performance appraisal simply means review if the job performance of an employee.

In order to evaluate the workers appraisal, specific goals should be set and there should be performance standards.

The technique to avert politics creeping into the performance of appraisal is that personal bias should be avoided and the employees should be aware of the performance appraisal tools.

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Answer:

Explanation:

How do you evaluate the workers' appraisal in this case?

b) Do you suggest any techniques to avert politics creeping into the process of performance appraisal by subordinates?

(c) What measures would you like to suggest in dispensing with such an appraisal system?

The cost of spandex is predicted to decrease by 5% per year for the next 3 years if the current cost is $20/yard how much will the cost of spandex be in 3 years

Answers

Answer:

The cost of spandex in 3 years will be $17.15/yard.

Explanation:

If the cost of spandex is predicted to decrease by 5% per year for the next 3 years, then the cost of spandex in each year can be calculated as follows:

1) At the end of the first year, the cost of spandex will be 95% of $20/yard = $19/yard.

2) At the end of the second year, the cost of spandex will be 95% of $19/yard = $18.05/yard.

3) At the end of the third year, the cost of spandex will be 95% of $18.05/yard = $17.15/yard.

Therefore, the cost of spandex in 3 years will be $17.15/yard.

A restaurant is for sale for $200,000. It is estimated that the restaurant will earn $20,000 a year for the next 15 years. At the end of 15 years, it is estimated that the restaurant will sell for $350,000. Which of the following would be MOST LIKELY to occur if the investors required rate of return is 15 percent?
a. Investor would pursue the project
b. Investor would not pursue the project
c. Investor would pursue the project if the holding period were longer than 15 years
d. Not enough information provided

Answers

Answer:

B

Explanation:

to determine of the investor would pursue the project, we need to determine the value of the net present value

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 = $-200,000

Cash flow in year 1 - 14 = 20,000

Cash flow in year 15 = 20,000 + $350,000

I = 15%

NPV = -40,039.53

The npv is negative and the project should not be undertaken

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

-40,039.53

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