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Alik [6]
2 years ago
9

Compute the net present value based on the original projections

Business
1 answer:
Gennadij [26K]2 years ago
4 0

The net present value of the new plant that Hawke Skateboard wants to build based on the original projections is $-226,275.04.

<h3>What is the  net present value?</h3>

Net present value is a capital budgeting method that calculates is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in years 0 = -3,280,000

Cash flow each year from year 1 to 15 = 3,280,000- 2,903,000 = 377,000

Cash flow in year 15 = 1,640,000

I = 11%

NPV = $-226,275.04

To learn more about net present value, please check: brainly.com/question/25748668

#SPJ1

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6 0
3 years ago
In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price leve
DaniilM [7]

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the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will __________ , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by __________ the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to __________the natural level of output in the short run.

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3 years ago
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard devi
irakobra [83]

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