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9966 [12]
3 years ago
6

A project with an initial investment of $440,900 will generate equal annual cash flows over its 11-year life. The project has a

required return of 8.2 percent. What is the minimum annual cash flow required to accept the project
Business
1 answer:
KatRina [158]3 years ago
5 0

Answer:

Project should have minimum annual cash flow of  $62,373.06 to accept the project

Explanation:

Any project will be accepted if its net present value (NPV) is positive

Hence, NPV>0

Sum of discounted cash inflow - Discounted Cash outflow > 0

Annual cash inflow * PVAF (8.2%, 11 years) - $440,990 > 0

Annual cash inflow * 7.0702 - $440,990 > 0

Annual cash inflow * 7.0702 > $440,990

Annual cash inflow > $440,990 / 7.0702

Annual cash inflow > $62,373.06

So project should have minimum annual cash flow of  $62,373.06 to accept the project

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You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c
ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

Therefore, the overall cost of capital is 15.8%

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3 years ago
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ICE Princess25 [194]

Answer:

Explanation:

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3 0
2 years ago
Conservatives and liberals have very different views on healthcare reform. A news station places a story featuring the conservat
Aliun [14]
A. Bias by placement, because bias by labeling would be something to the effect of calling the liberals point of view  uneducated, or giving there view some negative label, bias by omission would mean completely ignoring the other side, and not covering it at all, whereas all the other ones don't really fit, bias by placement is something to the effect of airing one side in the morning, while everyone is watching, and airing the other one after everyone is asleep, which is what is done here, which we know by the sentence "<span>liberal point of view at the end."</span>
3 0
3 years ago
The Style of leadership uses a hands-off approach,allowing the group to direct itself. Authoritarian. Democratic. Laissez-faire
natali 33 [55]

The correct answer is Laissez-faire.

Laissez faire is a style of leadership which uses hands-off approach by allowing the group to direct itself.

Laissez faire is termed as the economic system where there are free from intervention of government.

For example, tariffs, privileges, subsidies and regulations. It is a word which came from French to mean let it go.


8 0
3 years ago
Read 2 more answers
重
Naddik [55]

Answer:

B. agreements between two or more parties

Explanation:

if you were to sign a contract for something huge and you were broke the contract before you had finish the time that you had signed whom ever you signed it could end in a law sue and maybe even jail time.

Hope this helps :)

8 0
3 years ago
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