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2 years ago

The net present value (NPV) method estimates how much a potential project will contribute to

Business

1 answer:

Alex777 [14]2 years ago

4 0

This answer requires that we fill in the blanks. The answers are contained in the bullet to fill the missing places

shareholder wealth
larger the NPV
higher stock price.
WACC
accept the project.
higher positive NPV.

This is the term that is used to refer to the net present value. This is the value that is calculated as the difference between the cash inflows and out flows for over a time period.

In order to get the NPV we have to make the following calculations for the projects A and B.

We have:

<u>For Project A</u>

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= $355. 237

<u> project B</u>

we would have

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= 378.98

The value for the project B happens to be greater than that of A hence this is the value that we have to accept

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Bina Co. purchased a vehicle on January 1st for $15,000 and estimates it will use the vehicle for eight years with a $3,000 salv

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Using the double declining-balance depreciation method, the vehicle's second year depreciation expense is: $2,812.50.

<h3>Second year depreciation expense </h3>

First step is to calculate the first year depreciation expense

First year depreciation expense=15,000×(100%/8 x 2)

First year depreciation expense=15,000 x 25%

First year depreciation expense=3,750

Second step is to calculate Second year depreciation expense

Second year depreciation expense = (15,000-3750) x 25%

Second year depreciation expense=11,250x 25%

Second year depreciation expense =2812.50

Therefore Using the double declining-balance depreciation method, the vehicle's second year depreciation expense is: $2,812.50.

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2 years ago

What account earns the most interest

xxTIMURxx [149]

Answer:

A bank account

Explanation:

because your money is kept safe

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3 years ago

What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant

zimovet [89]

Answer:

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3 years ago

Corinne works in procurement for a major electronics company. One of her challenges is ensuring that raw metals, such as tungste

kvv77 [185]

Corinne is very excited because she works with a new company that uses due diligence to track these precious metals from mine to manufacturer to ensure they are not "conflict metals. ".

<h3>What is Due Diligence?</h3>

This refers to the conscious steps which a person takes in order to ensure that he is not committing an offense or taking a good background check.

Hence, we can see that because of Corinne's work with a major electronics company, she is charged with doing due diligence on the raw materials to ensure that they are not "conflict metals. ".

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2 years ago

Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba

Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%) + (2% × 10%)

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0

3 years ago