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
Len [333]
3 years ago
7

Molly is considering a project with cash inflows of $811, $924, $638, and $510 over the next four years, respectively. The relev

ant discount rate is 11.2 percent. What is the net present value of this project if it the start-up cost is $2,700?
a. -$425.91
b. -$131.83
c. -$383.01
d. $10.45
e. $229.50
Business
1 answer:
kati45 [8]3 years ago
5 0

Answer:

A. -$425.91

Explanation:

Given that

Start up cost = 2700

Cash inflow 1 = 811

Cash inflow 2 = 924

Cash inflow 3 = 638

Cash inflow 4 = 510

Rate = 11.2% or 0.112

Recall that

NPV = E(CF/1 + i]^n) - initial investment or start up cost

Where

E = summation

CF = Cash flow

i = discount rate

n = years

Thus

NPV = -$2,700 + $811 / 1 + 0.112 + $924 / 1 + 0.112^2 + $638 / 1 + 0.112^3 + $510 / 1 + 0.112^4

NPV = -$425.91

Therefore, NPV = -$425.91

You might be interested in
As a result of conducting a gap analysis, the potential entrepreneur proved there was a need for the business. This is called do
Vera_Pavlovna [14]

Answer:

due diligence

Explanation:

Due diligence refers to an entrepreneur or a business man/woman basically doing their homework, i.e. investigating thoroughly about a business opportunity before deciding to accept a business proposal, enter a new market, or start a new business.

Many times, management is required by law to perform due diligence before entering a new business or signing certain contracts, but it is just common sense that before you start a new business you will try to find out if the business is feasible or not.

7 0
3 years ago
If Shawn can produce donuts at a lower opportunity cost than Sue, then ____
Archy [21]

Answer:

(A) Shawn has a comparative advantage in the production of donuts.

Explanation:

Shawn renounce to less goods than Sue when producing donuts.

This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.

This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn

For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2

While Shawn can produce 8 donuts and resing to produce 8 of other goods:

each donut has an opportunity cost of 1

Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.

4 0
3 years ago
Data concerning Bouerneuf Company's common stock follow:Book value oer share 24.00Market Value per share 18.00Earnings per share
natali 33 [55]

Answer:

3

Explanation:

Price - earnings ratio refers to the ratio between the Market price and the Earning per share. The formula for price - earning ratio is as follows:

Given that,

Book value per share = 24.00

Market Value per share = 18.00

Earnings per share = 6.00

Par Value per share = 4.00

Dividend per share = 1.00

P/E ratio = Market price ÷ EPS

              = 18 ÷ 6

              = 3.0

Therefore, the price-earnings ratio would be 3.

4 0
3 years ago
Which of the following would be included in the expenditure method of calculating GDP? Check all that apply. Firedog spends $150
MrMuchimi

Sam pays Better Buy $1,000 to install a new high -definition television (HDTV) on his living room wall. He's attracted by Better Buy's guarantee that he'll be happy with the new HD1V, or he'll get his money back. ? Better Buy pays Firedog $900 to install the HDTV. ? Firedog buys hardware worth $150 from The Home Station. Assume that The Home Station gets the hardware for essentially nothing and that other costs are $0. To compute the contribution to GDP using the expenditure approach. Which of the following would be included in the expenditure method of calculating GDP? Check all that apply. Sam spends $1,000. El Better Buy spends $900. El Firedog spends $150. The total contribution to GDP, measured by the expenditure method,

Answer:

Sam spending of $1000

Explanation:

Sam's expenditure is a household consumption expenditure

Since AE = C + I + G + NX

where AE = aggregate expenditure for GDP

C = household consumption

I = investment on capital goods

G = government expenditure

NX = net export.

7 0
3 years ago
You are shopping for a new car. You find the perfect vehicle and are now applying for a loan from your local bank. Unfortunately
uranmaximum [27]

The liability faced by the credit agency for its incorrect reporting of your credit history is that  your actual damages, plus an additional amount not to exceed $1,000, plus attorney’s fees.

<h3><u>What is liability?</u></h3>
  • A liability is a debt that a person or business has, typically in the form of money. Through the transmission of economic benefits like money, products, or services, liabilities are eventually satisfied.
  • Liabilities are items that are listed on the balance sheet's right side and consist of debts including loans, accounts payable, mortgages, deferred income, bonds, warranties, and accumulated expenses.
  • Assets and liabilities can be compared. Assets are items you own or owe money to; liabilities are things you owe money to or have borrowed.
  • A liability, in general, is an obligation between two parties that hasn't been fulfilled or paid for.
  • A financial liability is an obligation in the realm of accounting, but it is more specifically characterized by prior business transactions, events, sales, exchanges of assets, or services.

Under the Fair Credit Reporting Act, your damages are not $5,000 only. It is also not actual damages plus or $3,000 plus the attorney's fees.

Know more about liability with the help of the given link:

brainly.com/question/15006644

#SPJ4

6 0
1 year ago
Other questions:
  • Job specifications can be defined as: a. planned sequences of jobs through which employees may advance within an organization. b
    10·1 answer
  • Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets.
    13·1 answer
  • Forms used by the medical practice should be updated __________ and the codes verified with the current year's diagnostic and pr
    13·1 answer
  • _____ refers to the movement of products through more than one channel to reach the firm's target market. select one:
    5·1 answer
  • Which of these postsecondary degrees comes after a master's degree (going from lowest to highest)? A. High school diploma B. Ass
    13·2 answers
  • Bill makes $100,000 and must pay 6% income taxes. Bob, on the other hand, makes $40,000 and must pay 2% income taxes. Bill and B
    6·2 answers
  • What is the primary task of the Federal Reserve​
    9·2 answers
  • A marketing consultant wants to estimate the proportion of all shoppers at a certain mall who make at least one purchase. he sta
    9·1 answer
  • Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario Sho
    10·1 answer
  • Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costi
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!