revolution records will build a new recording studio on a vacant lot next to the operations center. the land was purchased five years ago for $450,000. today the value of the land has appreciated to $780,000. revolutionary records did not consider the value of the land (it had already spent the money to acquire the land long before this project was considered). the npv of the recording studio was $600,000, without taking into account the land. should revolution records consider the land as part of the cash flow of the recording studio? if yes, what value should be used, $450,000 or $780,000? yes, $780,000 yes, $450,000 yes, (780,000 450,000)/2 no

Question

13-12-2022
Business

contestada

revolution records will build a new recording studio on a vacant lot next to the operations center. the land was purchased five years ago for $450,000. today the value of the land has appreciated to $780,000. revolutionary records did not consider the value of the land (it had already spent the money to acquire the land long before this project was considered). the npv of the recording studio was $600,000, without taking into account the land. should revolution records consider the land as part of the cash flow of the recording studio? if yes, what value should be used, $450,000 or $780,000? yes, $780,000 yes, $450,000 yes, (780,000 450,000)/2 no

Respuesta :

Otras preguntas

For questions 1-4, use the word "PROBABILITY.". What are the possible outcomes of choosing a letter randomly?2. which outcomes have more than one possibility?3.

exercitiul 2 de la 2 roman

please help, it would mean a lot to me! :) I need to understand these type of math problems and I need help on this one! I am having a test next week!

in the figure below helppp

Suppose the interest rate is 8.0% APR with monthly compounding. What is the present value of an annuity that pays %100 every 6 months for 5 years?

"When the president does it, that means it is not illegal." -President Richard M. Nixon Which of the following concepts best contradicts this quote? Public pol

Prepare to write a 1,500-word interpretive essay. Your teacher may require that you give this report orally, but E and written reports require planning and orga

Critical Thinking and the Nursing Process 1. Based on Maslow's hierarchy of needs , which of the following nursing diagnoses has the highest priority ? A. Knowl

y=2 How do I graph this

Read the sentences from “The Bean-Field.” Removing the weeds, putting fresh soil about the bean stems, and encouraging this weed which I had sown, making the ye

mahajanshrutivt mahajanshrutivt · Answer 1 · 2022-12-23T12:16:28+01:00

Yes, Revolution record should consider the value of land that was purchased for building a new recording studio for calculating the NPV of the project. The value of the land to be used is $780,000.

What is NPV?

The difference between the current value of the cash inflows and the cash outflows connected to a project is known as the net present value.

The land must be taken into account in the NPV calculations because it should be treated as a cash outflow.

The appraised value of $780,000 will be used for calculating NPV.

The correct NPV value is :

= Current NPV - cash outflow for land

= 600, 000 - 780, 000 = - $180, 000

Therefore, revolution record should consider the land at $780,000 as part of the cash flow of the recording studio.

To learn more about NPV, click here:

https://brainly.com/question/13228231

#SPJ1