The net present value of a microwave oven that costs

Assignment Help Financial Management

Reference no: EM131049286

What would be the net present value of a microwave oven that costs $173 and will save you $82 a year in time and food away from home? Assume an average return on your savings of 5 percent for 5 years. (Hint: Calculate the present value of the annual savings, then subtract the cost of the microwave.) Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

Reference no: EM131049286

Questions Cloud

A question of ethics portland shellfish : A Question of Ethics Portland Shellfish Co. processes live shellfish in Maine. As one of the firm's two owners, Frank Wetmore held 300 voting and 150 nonvoting shares of the stock. Donna Holden held the other 300 voting shares. Donna's husband, Je..

Hat amout will each plaintiff receive : A class-action suit against a utility company resulted in a settlement of $2.65 million for 79,000 customers. If the legal fees, which must be paid from the settlement, are $600,000, what amount will each plaintiff receive?

Market purchase by the federal reserve bank : Assume Required Reserve Rate is 10%, banks don't hold excess reserves, and public doesn't change their currency holdings. What will the change in deposits resulting from a $50 million open market purchase by the Federal Reserve Bank?

Calculate the costs of buying versus leasing : Use the following data: Purchase Costs Leasing Costs Down payment: $3,600 Security deposit: $1,200 Loan payment: $1,080 for 48 months Lease payment: $1,080 for 48 months Estimated value at end of loan: $4,700 End-of-lease charges: $705 Opportunity co..

The net present value of a microwave oven that costs : What would be the net present value of a microwave oven that costs $173 and will save you $82 a year in time and food away from home? Assume an average return on your savings of 5 percent for 5 years. (Hint: Calculate the present value of the annual ..

About the franchise fee : A work-at-home opportunity is available in which you will receive 2 percent of the sales for customers you refer to the company. The cost of your “franchise fee” is $790. How much would your customers have to buy to cover the cost of this fee?

Analyse trends and issues in creating learning organisation : MGT202 - Identify an organisation that is considered a Learning Organisation and Description of the organization's use of IT-based tools and systems for facilitating learning

Tradeoffs observable in the financial marketplace : Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?

Overall cost of debt is the weighted average : Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon rate..

User Account

All Pages