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Black_prince [1.1K]
3 years ago
9

Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. I

f Beene demands an annual return of 7% and pays for the project immediately, how much is it willing to pay for the project?
Business
1 answer:
mr_godi [17]3 years ago
8 0

Answer:

$714,980.95

Explanation:

The most it would be willing to pay is the present value of the cash flows

present value is the sum of discounted cash flows from a project

present value can be determined with a financial calculator

Cash flow each year from year 1 to 6 = $150,000

I = 7%

Present value = $714,980.95

To find the PV 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  

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The concept of brainstorming as a function of group decision-making was initially developed to:
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In 2020, Wildhorse Corporation reported net income of $1,021,600. It declared and paid preferred stock dividends of $265,100. Du
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Answer:

Wildhorse’s 2020 earnings per share is $3.79

Explanation:

The computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Average weighted of common outstanding shares)

where,  

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Now put these values to the above formula  

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Answer:

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3 0
3 years ago
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