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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

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Answer:

The answer is false (B)

Explanation:

From the question given, the answer is false.

Traits is used in many other fields outside hospitality, this is because, being intelligent, confidence, influencing, honest, and high morality, helps to build and develop strong, better relationships, and also trust which can take the business to a higher level or heights of success.

5 0
3 years ago
Another bank is also offering favorable terms, so Raphael decides to take a loan of $15,000 from this bank. He signs the loan co
Colt1911 [192]

Answer:

$15,495.41

Explanation:

Given that,

Loan amount = $15,000

Annual Interest rate = 13%

Daily interest rate = Annual Interest rate ÷ 365

                              = 13% ÷ 365

                              = 0.035616%

Period of loan = 3 months

Number of days:

= 365 × (3 ÷ 12)

= 91.25 days

Total amount that Raphael owes the bank at the end of the loan’s term:

= P(1 + r)^n

= 15,000 × (1 + 0.035616%)^91.25

= 15,000 × (1.00035616)^91.25

= 15,000 × 1.0330275

= $15,495.41

5 0
3 years ago
If the economy's real GDP doubles in 9 years, we can rev: 05_30_2018 Multiple Choice not say anything about the average annual r
DiKsa [7]

If the economy's real GDP doubles in 9 years, we can conclude that its average annual rate of growth is 8%.

<h3>How can we determine average annual rate of growth?</h3>

The rule of 72 can be used to determine when the real GDP of an economy would double. In order to determine the doubling time, divide 72 by average annual rate of growth.

average annual rate of growth = 72 / average annual rate of growth

72 / 9 = 8%

To learn more about  real GDP, please check: brainly.com/question/15225458

8 0
2 years ago
discuss the rationale of organizing an industrial strike in resolving employee dispute with the state,focusing on the detrimenta
Gennadij [26K]

Answer: The answer is given below

Explanation:

Strike is the refusal to work which is typically organized by body of employees as a method of protesting in an attempt to get a pay rise or other concessions from the employer.

Strike can be as a result of demand for wages or salary increment, better working conditions, better treatment at workplace and non-discrimination, towards employees.

Strikes can bring about potential benefits such as better working conditions, increase in pay, improved labor productivity, increase in work morale, and lower absenteeism. Itcsn also bring about economic costs to the society. Strikes results in negative impacts on employees, employers, consumers, stakeholders, the government, and the whole economy.

During strikes, there are less goods available for consumers, decrease in revenue on the part of employers, idle employees, and the economy is also affected badly.

6 0
3 years ago
Is there a company in a specific industry that can get by without having any customer service? If so, why and how does that make
Artyom0805 [142]

Answer:

No

Explanation:

Customer service has a great impact on every business, every company must train it's staff on how to listen to customers and attend to their needs in a polite and professional manner.

A great customer service will keep customers happy and satisfied, this will in turn make them want to come back to do more business. A satisfied customer will go extra length to recommend others to the company but unsatisfied customer that feels that his needs weren't addressed properly or his request wasn't attended to, such customer will not likely but from the company and also bad mouth the company to others and this will leave a great impact on the company growth.

In summary, no company in a specific industry would survive or get by without having customer service as this is part of what makes a company grow.

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