Answer:
$2,668.67
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-28,000
Cash flow in year 1 = $12,000
Cash flow in year 2 = $13,000
Cash flow in year 3 = $12,000
I = 10%
NPV = $2,668.67
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I would recommend for this customer a mix of investment grade bonds and cash or cash equivalents.
An individual with an investment objective of capital preservation should be investing in a mix of investment grade bonds and cash or cash equivalents lower risk capital appreciation vehicles, such as large-cap common stock, should also be considered. The other choices noted are too risky for a risk-averse investor.
Fixed earnings is a funding method focused on the maintenance of capital and earnings. It commonly includes investments like government and corporate bonds, CDs, and cash marketplace finances. fixed income can offer a consistent stream of earnings with less risk than stocks.
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Liability to Desean for non performance of the contract may be imposed on BERRY AND CUISINE CATERING.
Berry is required by the law to perform the duties in the contract agreement, failure to do this will creates liability for Berry and in that case, both Berry and Cuisine catering will be liable, because Berry had said that she is working on behalf of Cusine catering, thus, Cusine catering is already a part of the contract.
