At the lowest price for jeans consumers will demand the ___ jeans and Producers Supply the __

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

aksik [14]

-$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.

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6 0

2 years ago

Corona Co. is expecting to receive 100,000 British pounds in one year. Corona expects the spot rate of British pound to be $1.49

Grace [21]

Answer:

Explanation:

1st strategy : Selling pound forward

The spot rate of the pound is quoted at $1.51.

The one-year forward rate exhibits a 2.65% premium.

The one-year forward rate = 1.51 ( 1+ 0.0265)

= $ 1.55

Dollars received = 100000 * 1.55 = $155000

2nd strategy : Buying put option

The strike price of put = $1.54

premium on option is $.03

Amount received per option = $ 1.54 - $ 0.03 =$1.51

Total Dollars received = 100000* 1.51 = $ 151000

the best possible hedging strategy is Selling pound forward and receiving $155000

7 0

3 years ago

A stock has an expected return of 12 percent and a standard deviation of 20 percent. Long term Treasury bonds have an expected r

madreJ [45]

Answer:

D. The two assets have the same coefficient of variation.

Explanation:

the coefficient of variation = standard deviation / mean

the coefficient of variation of the stock = 20% / 12% = 1.67
the coefficient of variation of the treasury bonds = 15% / 9% = 1.67

As a general, the lower the coefficient of variation, the more exact is the estimated return.

4 0

3 years ago

Performance ambiguity lowers the cost of control. True or false?

Natalka [10]

False. Performance ambiguity lowers the cost of control.

Performance ambiguity comes about when the cause of a persons poor performance is not clear. Since this happens due to unclear reasons, it does not lower the cost of control. Performance ambiguity is usually found within international companies and transnational firms. These types of companies are located in many different countries.

4 0

3 years ago

Diana tells crystal, “i think i’ll sell that camping gear i bought for hiking the pacific trail for $250. i’m never going to mak

andre [41]

The answer is a statement of future intent. It is a statement of an intention has to do something in the future is not an offer. Agreements to agree arise when two parties are conversing an event involving future transactions which are still in progress. A statement of future intent is not a legally binding contract. It only designates an agreement by the two parties involved in the negotiation to attempt to form a future agreement. An agreement to agree is not binding if the matter under discussion is still in argument.

4 0

3 years ago

At the lowest price for jeans consumers will demand the ___ jeans and Producers Supply the ___ jeans

At the lowest price for jeans consumers will demand the _ jeans and Producers Supply the _ jeans