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denis23 [38]
2 years ago
9

What is the npv of the following cash flows if the required rate of return is 0.14? year 0 1 2 3 4 cf -4,506 3,099 531 3,560 2,7

05 enter the answer with 2 decimals (e.g. 1000.23).
Business
1 answer:
aksik [14]2 years ago
6 0

-$177.62, CF0 = -28900, CO1 = 12,450 FO1 = 1, CO2 = 19,630 FO2 = 1, CO3 = 2,750 FO3 = 1I = 12, CPT NPV = -177.62

In practical terms, it is a method of calculating your return on investment, or ROI, for a project or expenditure. Net present value may be a tool of Capital budgeting to research the profitability of a project or investment.

it's calculated by taking the difference between the current value of money inflows and present value of money outflows over a period of your time. Put differently, it's the compound annual return an investor expects to earn (or actually earned) over the lifetime of an investment.

for instance, if a security offers a series of money flows with an NPV of $50,000 and an investor pays exactly $50,000 for it, then the investor's NPV is $0. Net present value uses discounted cash flows within the analysis, which makes the web present value more precise than of any of the capital budgeting methods because it considers both the danger and time variables.

A higher NPV doesn't necessarily mean a far better investment. If there are two investments or projects up for decision, and one project is larger in scale, the NPV are higher for that project as NPV is reported in dollars and a bigger outlay will lead to a bigger number. Net present value (NPV) is that the difference between this value of money inflows and also the present value of money outflows over a period of your time.

learn more about NPV: brainly.com/question/18848923    

#SPJ4

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Suppose a market basket of goods and services costs $400 in the base year and the consumer price index (cpi) is currently 125. t
Zigmanuir [339]

Suppose a market basket of goods and services costs $400 in the base year and the consumer price index (cpi) is currently 125. This indicates the price of the market basket of goods is now <u>$275</u>.

Inflation is a boom within the standard fee stage. The respectable inflation price is tracked with the aid of calculating changes in a degree called the consumer price index (CPI). The CPI tracks modifications in the cost of residing through the years. Like different financial measures it does a quite precise job of this.

The consumer price index is referred to as that index that is utilized in calculating the retail inflation within the economic system by monitoring the modifications in costs of most normally used goods and services. In other words, the patron charge index calculates the changes in the rate of a common basket of products and offerings.

The CPI tracks the change in retail fees of products and offerings which families buy for or their daily intake. To degree inflation, we estimate how a great deal CPI has accelerated in terms of percentage change over the identical length of the preceding 12 months. If expenses have fallen, it is referred to as deflation (negative inflation).

Learn  more about the consumer price index here brainly.com/question/1889164

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5 0
1 year ago
Lee lives in a nation that has a worldview that values subordination of the individual to the goals of the group. Lee's country
Nikitich [7]

Lee lives in a nation that has a worldview that values subordination of the individual to the goals of the group. Lee's country also follows the principle that people should be judged by their contribution to the group. Lee's country is collectivism.

<h3><u>Explanation:</u></h3>

The principle that gives importance and priority to the group rather than the individuals is called as collectivism. It gives importance to the group for instance a family rather an individual in that family. For instance consider the activity of a child who has been brought up in a collectivist society.

He will have the tendency to take care of the parents who are older and when they are not feeling well instead of taking care of themselves. In the given example, the country in which LEE lives is giving priority to the group and thus Lee's country is collectivism.

6 0
3 years ago
Read 2 more answers
17. Which of the following is a false statement about the goals of management? A. Management's concern is that a union will crea
love history [14]
I think it's either A) or B) Let me know
6 0
3 years ago
The legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. This
V125BC [204]

Answer: indenture

Explanation:

The bond indenture is a legal contract that or covers a purchase obligation or a debt.

Therefore, the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond indenture. This document describes the number of bonds authorized, their par value, and the contract interest rate.

7 0
3 years ago
On October 31, the stockholders’ equity section of Sunland Company’s balance sheet consists of common stock $696,000 and retaine
nika2105 [10]

Answer:   Please find answers in the explanation column

Explanation:

Summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.

                     Before action After stock dividend After stock split

Stockholder's equity  

Paid in capital $696000 696000+ $65,250           $696,000

                                                       =$761,250

Retained earnings $397000 397000-($65,250)             $397,000

                                                          =$331,750  

Total Stockholder's

equity                 $1,093,000        $1,093,000               $1,093,000

Outstanding shares $87,000   87000 + 4,350              87000 x 2 =  

                                                          =$91, 350                      $174,000

Calculations:

stock dividend = Number of outstanding shares x percentage of dividend

= 87,000 x 5% =4,350

Amount to purchase 4,350 shares= number of shares x market value per share = 4,350 x 15= n$65,250

Number of shares after stock split of 2-for -1 = 87,000 x 2 = 174,000

7 0
3 years ago
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