X Company has an opportunity to accept a special order that will result in immediate profit of
Fantastic news! We've Found the answer you've been seeking!
Question:
X Company has an opportunity to accept a special order that will result in immediate profit of $76,000. After doing some market research that cost $4,000, the marketing manager believes that if X Company accepts the order, the company will lose regular customers. Specifically, she believes the effect will be lost profits of $9,500 in each of the next 5 years.
requirement
Assuming a discount rate of 6%, what is the net present value of accepting the special order?
Expert Answer:
Answer rating: 100% (QA)
Here are the steps to calculate the net present value NPV of accep... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Si 13.5 g N 2 , 10.60 g Hz y 19.5g, O 2 son colocados en un envase de 2.00 L a 29C, determine la presin total en el envase (presuma gas ideal PV-nRT). Utilizando la Ley de Dalton calcule la presin...
-
A mixture of three gases (Cl 2 , O 2 and NO) has a total pressure of 2.5 atm. What is the partial pressure of the Cl 2 gas if the pressure of O 2 is 0.9 atm and the pressure of the NO gas is 1.5 atm?
-
3. The reaction N 2 O ( g ) + O ( g ) N 2 ( g ) + O 2 ( g ) has a frequency factor of 3.69 x 10 9 M -1 s -1 and an activation barrier of 67 kJ/mol. Calculate the rate constant for the reaction at...
-
Consider the following hypotheses: H 0 : = 140 H 1 : 140 Given that x = 148.1, s = 37.5, n = 20, and = 0.02, answer the following questions: a. What conclusion should be drawn? b. Use PHStat to...
-
Presented below are excerpts from the 2012 annual report of Marstons PLC, a UK-based company that operates pubs. Property, plant and equipment ¢ Freehold and leasehold properties are initially...
-
Journalize the following transactions that occurred in January 2015 for Trishas Amusements. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or...
-
Presented below are selected financial data from the Bristol-Myers Squibb 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following ratios: receivable turnover,...
-
Hockey pucks used by the National Hockey League (NHL) and other professional leagues weigh an average of 163 grams (5.75 ounces). A quality inspector monitors the manufacturing process for hockey...
-
In order to justify a just-in-time inventory policy (so order quantity is one or some very small quantity), what should happen in the economic (optimal) order quantity model? A. Order cost should be...
-
David, the owner of a local poster shop, comes to you for help. "We've only been breaking even the past two years, and I'm getting very frustrated! I don't know what to do because I feel like I've...
-
Assume the foreign exchange rate quotes are such that $1 is equal to 0.5971 units of British pounds and 5.6818 units of Danish Krones. Also, those quotes can be expressed as British pounds 0.5971/$...
-
Briefly explain why CAPM includes only the systematic risk (beta risk) while ignoring the unsystematic risk.
-
Explain the evolution of contemporary cognitive psychology 2. evaluate the major theoretical and biological underpinnings of human perception, attention, memory, reasoning, language, and learning 3....
-
The total daily cost (in dollars) of producing a mountain bikes is given by C(x)=994+8x+ 0.11 . The average cost function C (x) decreases until x = c and increases afterwards. If the goal of the...
-
1. Michael Kimathi has purchased a tractor for $96,250. He expects to receive a net cash flow of $29,250 per year from the investment. What is the payback period for Michael? Round your answer to two...
-
8 (a) Show that the curves "a" cosmo and "a" sin me cut each other orthogonally. + y b (b) If a tangent to the ellipse a b in T and t, prove that + =1 CT2 Cr = 1, with centre C, meets the major and...
-
In (Figure 1), coordinate direction angles for F3 = 900 lb are a=140, =35, and y = 60. Determine the magnitude of the resultant force acting on the eyebolt. Express your answer in pounds to three...
-
Propose a reasonable mechanism for the following reaction. OH
-
Presented below are the condensed financial statements of Global Enterprises, Inc. The companys inventory is valued using LIFO. The companys footnotes reveal that the LIFO reserve was as follows....
-
Chemical Boost, Inc. isa manufacturer of TA5 chemical and derivative products. Presented below is select information from Chemical Boosts recent annual cas soy report. The footnotes to the companys...
-
Dominick Portet Wines Inc. began operations to import fine wines from Australia to the United States. Sales and purchase information is pZro vided below. Assume that Portet Wines uses the LIFO method...
Study smarter with the SolutionInn App