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OLEGan [10]
2 years ago
9

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

Business
1 answer:
lapo4ka [179]2 years ago
6 0

This answer requires that we fill in the blanks

  • The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealth
  • The larger the NPV,  the more value the project adds; and added value means a higher stock price.
  • The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACC
  • When the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project.
  • When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.

What is the NPV?

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

This is calculated as

Project A

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

= $355. 237

For the project B

We would have to perform similar calculation

Hence we would have

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

= 378.98

From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.

Read more on NPV here:

brainly.com/question/17185385

#SPJ1

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Factorize the following algebraic expressions.<br>m²-64n⁴​
qaws [65]

Answer:

Factorization of the expression = [m - 8n²][m + 8n²]  

Explanation:

Given expression;

m²- 64n⁴​

Find:

Factorization of the expression

Computation:

m²- 64n⁴​

m²- [(8n²)]²​

Using formula;

a² - b² = (a + b)(a - b)

By putting value in above formula;  

So,

Factorization of the expression  = m²- [(8n²)]²​

Factorization of the expression  = (m)²- [(8n²)]²​

Factorization of the expression = [m - 8n²][m + 8n²]  

5 0
3 years ago
Paraguay’s economy is afflicted by poverty and an absence of opportunities and advantages. However, a positive aspect of this si
Art [367]

Paraguay's economy is afflicted by poverty and an absence of opportunities and advantages. However, a positive aspect of this situation is none.

The economy of Paraguay is a market financial system that is distinctly depending on agriculture products. In latest years, Paraguay's economic system has grown because of improved agricultural exports, especially soybeans. Paraguay has the monetary benefits of a young population and great hydroelectric energy.

Paraguay has been one of the poorest and most unequal nations at the continent for a long term. the total poverty rate — defined by using the world financial institution as those with an income of much less than $3.10 a day — in Paraguay rose in 2016 from 26.6 percent to 28.8 percent.

Learn more about economy here: brainly.com/question/2824360

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7 0
2 years ago
For businesses that gross in excess of $10 million per year, pro forma amounts are usually ________. rounded to the nearest ten
KatRina [158]

Answer:

rounded to the nearest ten thousand dollars

Explanation:

The term pro forma financial statements refers to a type of financial statement which estimates future financial results. It doesn't follow the GAAP, instead it is designed to focus on specific figures about a company's expected earnings. Although pro forma financials are only expected financial statements, it is still illegal to mislead investors using them.

5 0
3 years ago
John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would e
jeka94
Since their is no choices he shouldn’t never touch the money and keep adding cash it increase it over time.
8 0
3 years ago
Assume a company makes only three products, B, C, and D:
Vsevolod [243]

Answer:

d) $13

Explanation:

contribution margin per unit:

  • product B = $45
  • product C = $39
  • product D = $25

contribution margin per machine hour:

  • product B = $45 / 2.5 = $18
  • product C = $39 / 3 = <u>$13</u>
  • product D = $25 / 1.25 = $20

the company should first produce 800 units of product D and use 1,000 machine hours. Then it should produce 680 units of product B using 1,700 machine hours. In order to produce the remaining 20 units of product B and the 600 units of product C, the company must rent machine hours and the maximum possible price per hour is $13 (contribution margin per machine hour product C).

8 0
3 years ago
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