FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What would be the net present value of a microwave oven that costs $166 and will save you $75 a year in time and food

image text in transcribed

What would be the net present value of a microwave oven that costs $166 and will save you $75 a year in time and food away from home? Assume an average return on your savings of 5 percent for 6 years. (Hint: Calculate the present value of the annual savings, then subtract the cost of the microwave.) Use Exhibit 1-D. (Round PVA factor to 3 decimal places and final answer to 2 decimal places.)

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Multinational Finance

Multinational Finance

Authors: Kirt C. Butler

3rd Edition

0324177453, 978-0324177459

More Books

Students also viewed these Finance questions

Question

★★★★★
For each of the investments shown in the following table, calculate the rate of return earned over the unspecified timeperiod. Cash flow Beginning-of End-of pcriod valuc S 100 118,000 Investment...

Answered: 1 week ago

Question

★★★★★
In terms of the factors that determine market liquidity, why do investors consider real estate to be a relatively illiquid asset?

Answered: 1 week ago

Question

★★★★★
127. Let X the time it takes a read/write head to locate a desired record on a computer disk memory device once the head has been positioned over the correct track. If the disks rotate once every 25...

Answered: 1 week ago

Question

★★★★★
Widgits-R-Us specializes in building gears that go into large windmills and clocks. The company has had the following sales and production costs for the last four years. Required: 1. Compute...

Answered: 1 week ago

Question

★★★★★
Discussion : The Price Earnings Ratio or PE ratio is an indicator of how expensive a stock is. Some investors will look to invest in stocks with a high PE ratio. Some will look to invest in stocks...

Answered: 1 week ago

Question

★★★★★
Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corporations. The tax returns have the following characteristics. Price charged per tax return Variable...

Answered: 1 week ago

Question

★★★★★
You are an accounting associate assisting a compliance officer of a large private company. The compliance officer recently investigated concerns about accounting irregularities in journal entries...

Answered: 1 week ago

Question

★★★★★
A Pharmacy has four counter to serve Blood pressure test for customer. Customers arrive according to a Poisson distribution at the rate of 1 every 10 minutes. However, only 85% seek service at the...

Answered: 1 week ago

Question

★★★★★
The document that governs the relationship between the A-Note holder and the B-Note holder is the a)Subordination Agreement b)Intercreditor Agreement c)Participation or Co-lender Agreement...

Answered: 1 week ago

Question

★★★★★
Select the misleading graph. Line chart of Monthly average temperature. Month is on the x axis and average temperature is on the y-axis. Scatterplot with rainfall on the x-axis and tree density on...

Answered: 1 week ago

Question

★★★★★
Greece is now subject to "enhanced supervision" by euro zone creditors, having exited the bail- out programme in August 2018. The government has committed to meeting annual primary budget __________...

Answered: 1 week ago

Question

★★★★★
What purposes do policy manuals serve in organizations? (Objective 5)

Answered: 1 week ago

Question

★★★★★
Teamwork. George Urban and Helen Felix graduated from your school and later started their own business. Because they believed their education contributed to their success, they recently pledged...

Answered: 1 week ago

Question

★★★★★
Technology. You volunteer at a Boys and Girls Club in your community. The playground equipment at the club is old and potentially unsafe.Youve decided to explore the possibility of applying for...

Answered: 1 week ago

Previous Question Next Question