38 . Foamsoft sells customized boat shoes . Currently , it sells 16,850 pairs of shoes annually at an average price of $ 79 a pair . It is considering adding a lower-priced line of shoes which sell for $ 49
39 . The net present value method of capital budgeting analysis does all of the following except :
40 . Graham and Harvey ( 2001 ) found that _____ were the two most popular capital budgeting methods .
41 . The primary reason that company projects with positive net present values are considered acceptable is that :
42 . What is the net present value of a project with an initial cost of $ 36,900 and cash inflows of $ 13,400 , $ 21,600 , and $ 10,000 for Years 1 to 3 , respectively ? The discount rate is 13 percent .
43 . Flatte Restaurant is considering the purchase of a $ 10,800 soufflé maker . The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method . The machine will produce 2,400 soufflés per year , with each costing $ 2.80 to make and priced at $ 5.65 . Assume that the discount rate is 16 percent and the tax rate is 35 percent .
What is the NPV of the project ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)
Should the company make the purchase ?
44 . A project costing $ 6,200 initially should produce cash inflows of $ 2,860 a year for three years . After the three years , the project will be shut down and will be sold at the end of Year 4 for an
45 . Down Under Boomerang , Inc ., is considering a new three-year expansion project that requires an initial fixed asset investment of $ 2.73 million . The fixed asset will be depreciated straight-line to zero over its three-year tax life , after which it will be worthless . The project is
What is the project ’ s NPV ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)