1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sp2606 [1]
2 years ago
7

A five-year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It

will cost $50,000 to implement the project. If the required rate of return is 20 percent, conduct a discounted cash flow calculation to determine the NPV.
Business
1 answer:
riadik2000 [5.3K]2 years ago
4 0

The value of Net present value is $12,895.45.

Given that

initial investment = $50,000

1st-year cash flow = $15,000

2nd-year cash flow =$ 25,000

3rd-year cash flow =$ 30,000

4th-year cash flow = $20,000

5th-year cash flow = $15,000

rate = 20%

using formula

NPV = \frac{R}{({1+i})^t}

NPV = \frac{15000}{({1+0.20})^5}\\NPV = 12895.45

<h3>What is Net Present value?</h3>
  • The current value of a future stream of payments from a business, project, or investment is determined using net present value, or NPV.
  • You must predict the timing and size of future cash flows in order to determine NPV, and you must choose a discount rate that is equal to the least allowable rate of return.
  • Your cost of capital or the rewards offered by substitute investments with comparable risk may be reflected in the discount rate.
  • Positive NPV indicates that the rate of return on a project or investment will be higher than the discount rate.
  • to learn more about Net present value with the given link

brainly.com/question/14293955

#SPJ4

You might be interested in
The following units of an item were available for sale during the year:
valina [46]
Best answer


a firm has beginning inventory of 300 units at a cost of 11 each. production during the period was 650 units at 12 each. if sales were 700 units what is the cost of goods sold (assume FIFO)
4 0
3 years ago
________________ represent a series of thick and thin vertical linesreadable by computerized optical scanners that represent num
amm1812

Answer: Bar codes

Explanation:

A barcode is a way of representing data in a machine-readable and visual form. In the past, barcodes illustrated data by placing the parallel lines at intervals and altering the widths. Nowadays, barcodes known as one-dimensional (1D) or linear are scanned by optical scanners. Also, the two-dimensional (2D) barcodes were manufactured using dots, rectangles, hexagons and some geometric patterns, known as matrix barcodes. Barcodes are used for the tracking of products.

3 0
3 years ago
You started a new job working 4 days a week. During a work day you can complete 3 tasks per hour. You also take a half hour for
aleksandr82 [10.1K]
21 tasks, if you use your lunch break and your 2 15 minute breaks
4 0
3 years ago
During 2004 Elway Corporation transferred inventory to Howell Corporation and agreed to repurchase the merchandise early in 2005
Svet_ta [14]

Answer:

d. Product financing arrangement.

Explanation:

A business transaction in which an organization sells and agrees to repurchase inventory with the repurchase price equal to the initial or original sales price plus the carrying and financing costs is known as the Product financing arrangement.

A product financing arrangement is more likely to exist when the seller commits to having a third party client purchase the item and then agrees to repurchase the item from the third party client.

It's noteworthy to know, that the seller controls how the item sold under either of the above mentioned situations is analysed and disposed of.

6 0
3 years ago
A thief steals an ATM card and must randomly guess the correct three​-digit pin code from a 9​-key keypad. Repetition of digits
Dennis_Churaev [7]

Answer:

The thief has a 0.11% probability of hitting the pin code on the first try.

Explanation:

Simply, if the ATM card has a 3-digit code that can be repeated, and the board has 9 numbers (for example, from 1 to 9), we must start from the smallest number that could be formed with these numbers to the highest number that these numbers could also compose, which in the case would be 111 and 999. Then, 889 different numbers could be formed (it is the distance between 111 and 999), with which the possibility of hitting the key to the first attempt would be 1 in 889 times, or 1/889.

To take the probability to a percentage, we must know that 889 / 8.89 gives 100. Therefore, dividing 1 / 8.89 we will know the percentage of probabilities of hitting the key on the first attempt: 1 / 8.89 = 0.11.

This shows us that the thief has a 0.11% probability of hitting the key on the first try.

7 0
3 years ago
Other questions:
  • On October 5, Narveson Company buys merchandise on account from Rossi Company. The selling price of the goods is $6,380, and the
    7·1 answer
  • "Simon has to create a long formal proposal. However, he is aware that today's readers are pressed for time and need help findin
    15·2 answers
  • Based on the following information, what amount would be subtracted from the bank balance side of a checking account reconciliat
    15·1 answer
  • The following account balances appear in the 2021 adjusted trial balance of Beavers Corporation: Service Revenue, $245,000; Sala
    10·1 answer
  • A retirement plan guarantees to pay you or your estate a fixed amount for 20 years. At the time of​ retirement, you will have​ $
    12·1 answer
  • A plant asset was purchased on January 1 for $40,000 with an estimated salvage value of $8,000 at the end of its useful life. Th
    13·1 answer
  • Innovation takes dedicated effort and resources, and organizations that are successful at it tend to be set up in ways that natu
    14·1 answer
  • Isobel consumes positive quantities of both jam and juice. The price of jam is 10 cents per unit and the price of juice is 5 cen
    10·1 answer
  • Tom Lewis, an individual taxpayer, performs services for the Red Cross at an out-of-town location for three weekends during the
    9·1 answer
  • Indiana Co. began a construction project in 2021 with a contract price of $161 million to be received when the project is comple
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!