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Irina18 [472]
1 year ago
11

Project marvel is a five-year project. The project has a total cash inflow of $350,000. The present value of such inflows is $27

5,000. The project requires an initial investment of $200,000 and additional working capital of $25,000. What is the net present value of the project?.
Business
2 answers:
Paha777 [63]1 year ago
8 0

The net present value of the project is $50,000

<h3>What is Capital budgeting?</h3>

A company's investment initiatives are evaluated as part of the capital budgeting process. One of the methods utilized in this evaluation is the computation of Net Present Value (NPV). This calculation comprises discounting cash flows that arise from starting the project or investment at the beginning stage before the project or investment is launched, using a suitable discount rate.

Solution:

present value = $275,000.

initial investment = $200,000

additional working capital = $25,000.

total investment = $200,000+$25,000

                           = $225,000

NPV= 275,000-225,000 = 50,000

To learn more about Capital budgeting visit:

brainly.com/question/23719404
#SPJ4

Yuri [45]1 year ago
5 0

The net present value of the project is $50,000

  • The net present value of Project Marvel's future cash inflows has already been determined, and the outcome is $275,000
  • The cash outflows are described as an initial investment of $200,000 and further working capital of $25,000.
  • Therefore, the total cash outflows for the current period would be $225,000.
  • Project Marvel has produced a net cash inflow of ($275,000 - $225,000)which is $50,000.

<h3>Capital budgeting – what is it?</h3>
  • The capital budgeting process includes an evaluation of a company's investment efforts.
  • The calculation of Net Present Value(NPV).  is one of the approaches used in this evaluation
  • Using a suitable discount rate, this calculation involves discounting cash flows that result from launching the project or investment at the planning stage before the project or investment is initiated.

To learn more about capital budgeting visit:

brainly.com/question/23719404

#SPJ4

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Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is $1.50 per euro.
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Answer:

$4.24287 million per year

Explanation:

Missing question:  The swap will call for the exchange of 1 million euros for a given number of dollars in each year.

For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows

Forward exchange rate * $1 million error = Dollar to be received

Year 1 = 1.50*(1.04/1.03) * 1 million euros

Year 1 =  1.514563106796117 * 1 million euros

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Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros

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3 0
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Hiku Inc. developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at
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A) licensing

Explanation:

Based on the information provided within the question it can be said in this scenario the alternative that is being illustrated is known as licensing. This term refers to an agreement in which one business gives permission to another to be able to use the first company's patented product. Which in this scenario is a multi-screen table.

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Cullumber Company incurred the following costs while manufacturing its product.
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$328,400

Explanation:

Cost of Goods Manufactured is calculated in Manufacturing Account as follows :

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therefore,

Cost of Goods Manufactured = $13,000 + ($121,000 + $61,000 + $15,000 + $111,000 + $24,000) - $16,600

                                                 = $328,400

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