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melomori [17]
1 year ago
13

The formula for finding the net present value of a cash outflow now, a positive cash flow in 1 year, a positive cash flow in 2 y

ears, and a positive cash flow in 3 years is:_________
Business
1 answer:
melamori03 [73]1 year ago
7 0

The formula for finding the net present value is -C0 + [C1 / (1 + r)] + [C1 / (1 + r)²] + [C1 / (1 + r)³].

<h3>What is the net present value?</h3>

The net present value is a capital budgeting method. Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive net present value should be accepted. A project with a negative net present value should not be chosen because it isn't profitable. When choosing between positive  net present value projects, choose the project with the highest  net present value first because it is the most profitable.

An advantage of the net present value method of capital budgeting is that it considers the times value of money. A disadvantage of net present value is that it is difficult to estimate the accurate discount rate.

To learn more about net present value, please check: brainly.com/question/25748668

#SPJ1

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A stock is expected to maintain a constant dividend growth rate of 4.2 percent indefinitely. If the stock has a dividend yield o
babunello [35]

Answer:

Explanation:

Required return = (dividend / price per share) + constant growth rate.

Dividend yield on the stock =  (dividend / price per share) = 5.5%

Therefore, Required return = 5.5% + 4.2% = 9.7%

7 0
3 years ago
What is the acronym for this
laiz [17]

The acronym for the formula to find the inflation rate, [(New Price - Original Price)/Original Price] (100) is <u>B. NOO</u>.

<h3>What is the inflation rate?</h3>

The inflation rate is the rate of increase in prices from one period of time to the next.

In the United States, the Consumer Price Index (CPI) is often used to gauge inflation.

Thus, the acronym for the formula to find the inflation rate, [(New Price - Original Price)/Original Price] (100) is <u>B. NOO</u>.

Learn more about inflation at brainly.com/question/1082634

5 0
3 years ago
For 2019, Eric is a self-employed financial consultant. During the current year, Eric's net self-employment income is $132,150.
Alex Ar [27]

Answer:

The Eric's self-employment tax is $10109

Explanation:

The computation of the Eric's self employment tax is shown below:

= Net Self employment income × OASDI  tax rate +  Net Self employment income × MHI tax rate

= $132,150 × 6.2% + $132,150 × 1.45%

= $8,193.30 + $1,916.175

= $10109.475

The OASDI tax rate is also called social security tax and the self employment tax comprises of OASDI tax and MHI tax.

3 0
3 years ago
In 2011 modern electronics produce 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the s
disa [49]

Answer:

a. decreased by 4%

Explanation:

In 2011 modern electronics produce 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produce 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronic increased by

In 2011 - 60,000 / (80 x 8) = 93.75 units per hour

In 2012 - 76,500 / (85 x 10) = 90 units per hour

(93.75 - 90) / 93.75 = 4% decrease

8 0
3 years ago
In 1 or 2 sentences, explain the link between economic wants and preferences.
andriy [413]
<h3>Answer:</h3>

A connection within economic wants and preferences is regularly the essential necessities that are required for our everyday living. Preferences can be presented later determining the economic wants and primary requirements of the people included.

<h3>Explanation:</h3>

An economy is a field of the generation, dissemination, or business, and consumption of goods and assistance by different factors. Known in its wider sense, The economy is described as a social area that indicates the practices, discussions, and material representations connected beside the reproduction, use, and control of sources. Economic factors can be individuals, corporations, establishments, or governments.

4 0
3 years ago
Read 2 more answers
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