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
djverab [1.8K]
3 years ago
6

A company is evaluating an investment which has an initial investment of $4,000. Annual net cash flows is expected to be $2,000

over the next three years. The company requires a 10% annual return. The present value of an annuity factor for 10% and 3 periods is 2.4869. The present value of $1 factor for 10% and 3 periods is 0.7513. The net present value is (round your answer to the nearest whole dollar).
Business
1 answer:
uysha [10]3 years ago
4 0

Answer:

The NPV of the project is $974.

Explanation:

The net present value is the today's value of a stream of cash flows. The net present value will be the sum of all the expected future cash flows from a project less the initial investment required for the project and it is used to evaluate the investment decisions.

The net present value of an investment project will be:

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial investment

or

If the cash flows are constant or of same amount through out, occur after the same interval of time and are for a defined period of time, they become an annuity and the NPV of such a project can be calculated by,

NPV = (Cash flow per period * Present value of Annuity factor) - Initial cost

The NPV of this project will be = (2000 * 2.4869) - 4000 = 973.8 rounded off to $974

You might be interested in
When the economy took a downturn and jobs were difficult to find, many people blamed immigrants. What would be a good explanatio
ioda

Realistic conflict theory would be a good explanation for rising prejudice in this situation.

<h3>What do you mean by Realistic conflict theory ?</h3>

According to the realistic conflict theory, wherever there are two or more groups vying for the same few resources, there will be conflict, false preconceptions and ideas, and prejudice towards the various groups.

Just the perception of competition will foster hostile emotions and discriminating behavior in one group. For instance, whether or not it is accurate, ethnic group A will feel resentment and hatred if it perceives that members of ethnic group B are a threat to them by "taking employment."

Learn more about realistic conflict theory here

brainly.com/question/4511475

#SPJ1

4 0
1 year ago
When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit a. Inventory b. Pu
Keith_Richards [23]

Answer:

Accounts payable

Explanation:

In accounting, the term accounts payable refers to the money that is owed by a business to its suppliers, in other words, it refers to the business' short-term debts.

When merchandise is purchased on account and it is returned under the perpetual inventory system, the buyer would then debit accounts payable since it is money that the company would owe to the buyer.

4 0
3 years ago
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed pe
SOVA2 [1]

Answer:

Life income with certain period annuity

Explanation:

This type of policy guarantees a certain amount of money during the remaining life of the insured. It also guarantees that during a minimum specified time, the certain period, the payments will be carried out even if the insured dies. In this case the benefits will be paid to his/her beneficiary. The insured determines the certain period when choosing the life insurance plan, and the certain period can vary from 5 to 30 years.

8 0
3 years ago
Which events listed below would terminate a brokerage relationship where a broker represented a seller
sertanlavr [38]

The events listed that would terminate a brokerage relationship where a broker represented a seller are:

  • The house sold and the transaction closed
  • The owner declares personal bankruptcy

<h3>Who is a broker?</h3>

Broker is a person or a company whose work is to sell a company's products hence charge a commission for each product sold. He is like an intermediator between the company and the client.

An agency relationship creates a fiduciary duty owed by the agent to the principal, hence must act in the best interest of his principal at all times.

However, a brokerage relationship may be dissolved where the owner of an item is declared bankruptcy and also were transaction have been completed or closed.

Learn more about brokerage here: brainly.com/question/7284696

#SPJ1

5 0
2 years ago
Which of the following file extensions indicates a template inside Microsoft word .dotx , .xlsx , .docx , .pptx ?
lesantik [10]

.dotxis the the file extension that indicates a template inside microsoft.

4 0
3 years ago
Other questions:
  • Cindy prefers to shop at Target for most of her household needs even though the same products and brands are available at Kmart.
    14·1 answer
  • According to the theory of the firm, what is one of the most important decisions that all firms must make?
    15·1 answer
  • "how would the distribution of income change if social security were privatized?"
    6·1 answer
  • If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in
    14·1 answer
  • The following information pertains to Cullumber Company.
    9·1 answer
  • What are the categories under the demographic segmentation
    5·1 answer
  • Answer these all ASAP
    9·2 answers
  • What does economic problem mean?
    7·1 answer
  • Oriental Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment in depr
    12·1 answer
  • one of the primary goals of financial management is for net worth to increase over time from strong business performance and eff
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!