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]
1 year 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]1 year 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
What is the impact of war in international trade
Bezzdna [24]

The impact of war in international trade includes:

  • restriction of goods to the countries
  • conflict leading to non-agreement on trade
  • low or no trade relationship between countries.

<h3>What is an international trade?</h3>

This refers to the economic transactions that are made or took place between countries.

Hence, any military conflict impact on international trade by causing a restriction of goods to the countries, conflict leading to non-agreement on trade, low or no trade relationship between countries etc.

Read more about international trade

<em>brainly.com/question/15115779</em>

#SPJ1

8 0
1 year ago
What management function is production manager Cedric Stein using when he orders aluminum component parts (bumpers, drive trains
N76 [4]

Answer:

Purchasing

Explanation:

In the purchasing function, the company purchased the products and services from the manufacturer at a lesser cost and then sell the goods at higher prices in order to earn the profit.

When someone purchases, when the price is less and quality is best as compared with the competitors dealing in the same industry

Therefore in the  given case, Cedric Stein orders aluminum component parts that are used in the Audi card production so here the purchasing function is used

5 0
3 years ago
With the __________ inventory control system, producers hold only the amount of materials and parts that they need for a short p
Artist 52 [7]

Answer: (C) Just-in-time (JIT)

Explanation:

The just-in-time is one of the type of inventory system that reduced the overall amount of the inventory goods and the services that is owed by the manufacturer in the business.

It is also known as JIT inventory system and the main aim of this type of system is to increase the efficiency of the products and the services in an organization and reducing the wastage in the production process.

According to the question, the just-in-time inventory control system creating the production for the short time period and for the few hours also ans they reduce overall inventory cost in the system.  

 Therefore, Option (C) is correct.  

5 0
2 years ago
The best way to limit competition is to: Choose one: A. control a resource that is essential in the production process. B. lobby
zloy xaker [14]

Answer:

A. control a resource that is essential in the production process.

Explanation:

When the crucial resource is required to make a product, then the restrictions on such resource would not allow, many people to enter in such business.

Also that the resources will be restricted in some or other manner, its price will increase accordingly the cost of producing such article would also increase.

As the cost of production will increase only producers with a high budget and resources in terms of finance will chose it.

5 0
3 years ago
What are control accounts in accounting.
Zina [86]

In accounting, the controlling account (also known as an adjustment or controlaccount) is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail.
4 0
3 years ago
Other questions:
  • The Tennis Times (TTT) is a publisher of magazines. Its accounting policy for subscriptions follows:RevenuesRevenues from our ma
    14·1 answer
  • Which of these describes a situation in which people have to make a co-pay? A. When they visit a doctor B. When they get their c
    11·1 answer
  • Which of the following is the best reason for including a photograph in a formal business document?
    5·2 answers
  • The US inflation rate is measured by changes in the overall price of the CPI __________.
    13·1 answer
  • a firm in a perfectly competitive industry is producing 1000 units of output and earning revenues of 50000. At that level of out
    6·1 answer
  • Financial leverage: Group of answer choices is the ratio of a firm's revenues to its fixed expenses. is equal to the market valu
    15·1 answer
  • Windswept, Inc. 2011 Income Statement ($ in milions)
    15·1 answer
  • Question 3 of 10
    5·1 answer
  • At the end of the current year (before adjusting entries), Autumn Corporation had a balance of $76,000 in Accounts Receivable an
    15·1 answer
  • What are examples of financial goals? Check all that apply.
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!