The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They Close (Ctrl+X) dering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $80,286 to purchase. It's expected that additional sales will be $26,186 per year while variable expenses are expected to increase $4,023 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $8,158. It will have no salvage value at the end of its useful life. The Johnny Pickles Brewing Company uses a discount rate of 12% when deciding to accept a project. What is the net present value of the project? Round your answer to the whole dollar. If the NPV is negative, enter as a negative. If it's positive, enter as a positive. The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They Close (Ctrl+X) dering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $80,286 to purchase. It's expected that additional sales will be $26,186 per year while variable expenses are expected to increase $4,023 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $8,158. It will have no salvage value at the end of its useful life. The Johnny Pickles Brewing Company uses a discount rate of 12% when deciding to accept a project. What is the net present value of the project? Round your answer to the whole dollar. If the NPV is negative, enter as a negative. If it's positive, enter as a positive.
Expert Answer:
Answer rating: 100% (QA)
To calculate the net present value NPV of the project we need to determine the present value of the ... View the full answer
Related Book For
Business Ethics Ethical Decision Making and Cases
ISBN: 978-1305500846
11th Edition
Authors: O. C. Ferrell
Posted Date:
Students also viewed these accounting questions
-
Norway has a long tradition of boatbuilding stretching back to before Viking times. This is due, no doubt, to Norways proximity to the sea, ample forests, and long coastline. Among luxury sailing...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Suppose that a given market accepts only market and limit orders. Which of these two order types are more likely to be placed by buy-side market participants? Why? Which of these two order types are...
-
Question. Consider the inverse demand function P=20-Q and the inverse supply function P=2+Q. Find (a) equilibrium price P* and Q*, (b) consumers surplus (CS), producers surplus (PS) and the total...
-
Let xp(n) be a periodic sequence with fundamental period N. Consider the following DFTs: (a) What is the relationship between X1(k) and X3(k)? (b) Verify the result in part (a) using the sequence xp...
-
Pop Corporation acquired a 70 percent interest in Son Corporation on January 1, 2016, for $420,000 cash, when Son's equity consisted of $300,000 capital stock and $200,000 retained earnings. On July...
-
Reagan and Grady Wade are married with three qualifying children under the age of 17. In 2022, Reagan and Grady had earned income of \($50,000\) and no adjustments. Line 11 of their 1040 reports AGI...
-
Lynch Furniture Company refinishes and reupholsters furniture. Lynch uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on...
-
1 2 Part 2 of 15 points Skipped eBook P Deferences Required information The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions...
-
MedicTronix is a startup company that manufactures medical devices for use in hospital clinics. Inspired by experiences with family members who have battled cancer, MedicTronixs's founders have...
-
Allied Biscuit Co. is expected to generate a free cash flow (FCF) of $11,600.00 million this year (FCF? = $11,600.00 million), and the FCF is expected to grow at a rate of 22.60% over the following...
-
what would be the firm's ratio of net ppe/fross ppe under the fc method ?
-
fixed operating cost $156,917 per mouth, variable operating cost $16583, average price $90 what is the breakeven point?
-
8. What is the difference between: (15%) a. Explain how open hash tables handle collisions? b. Explain how closed hash tables handle collisions? c. What is the difference between linear probing and...
-
How can a function be written to return the second largest number in a set of integers?"
-
Click to select the wireless encryption methods, and then drag them into the correct order from most to least secure. Wireless encryption methods 1 WPA-CCMP WPA3-GCMP WPA3-CCMP 2 WPA2-TKIP 3 WPA-TKIP...
-
Heineken N.V., a global brewer based in the Netherlands, reports the following balance sheet accounts for the year ended December 31, 2016 (euros in millions). Prepare the balance sheet for this...
-
Discuss the alternatives and duties Mary has as a representative for both the buyer and seller.
-
Compare and contrast the leadership characteristics of Stan and David.
-
1. How has Lululemon handled various ethical issues that it has faced over the last few years? 2. How has the ethical culture of Lululemon impacted its relationship with customers and employees? 3....
-
Consider the sample space and the partition Let be the field generated by this partition, and define the mapping as follows: This seemingly innocent mapping is not a random variable with respect to...
-
Given , consider the family of subsets This is not a field, since, for instance, . = {1,2,3,4}
-
Let us consider the scenario tree of Fig. 11.10 and define consider decision Data From Fig. 11.10 Data From Example 11.17 cision variables Z and Z, representing the number of stock shares that we buy...
Study smarter with the SolutionInn App