Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

D Question 3 1 pts The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products

image text in transcribed
D Question 3 1 pts 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 are considering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $86,471 to purchase. It's expected that additional sales will be $27,436 per year while variable expenses are expected to increase $4,686 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $7,732. It will have no salvage value at the end of its useful life. The Johnny Pickles Brewing Company uses a discount rate of 10% 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Prepare an ID card of the continent Antarctica?

Answered: 1 week ago

Question

Describe the types of power that effective leaders employ

Answered: 1 week ago

Question

Describe how leadership styles should be adapted to the situation

Answered: 1 week ago