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
Leto [7]
3 years ago
5

1. A project will produce cash inflows of $2,800 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's

initial cost is $9,500. What is the net present value of this project if the required rate of return is 16 percent
Business
1 answer:
Goshia [24]3 years ago
3 0

Answer:

$1,048.75

Explanation:

Data provided in the question:

Cash flows for the 4 years = $2,800 each year

Cash flow for the year 5 = $5,700

Project's initial cost = $9,500

Required rate of return = 16 percent

Now,

Present value of the cash flow = Cash flow × Present value factor

also,

Present value factor = [ 1 + r]⁻ⁿ

n is the year

Thus,

Year    Cash Flow     Present value factor         Present Value of Cash flow

1            2,800.00             0.86                          2,413.79

2      2,800.00             0.74                          2,080.86

3      2,800.00             0.64                          1,793.84

4      2,800.00             0.55                          1,546.42

5      5,700.00             0.48                           2,713.84

Total value of cash flow = ∑ Present value of cash flow

= $10,548.75

Therefore,

Net Present Value

= Present Value of Cash inflow - Initial investment

= $10,548.75 -$9500

= $1,048.75

You might be interested in
Which is the best answer choice for the question? To be deductible as the cost of special work clothing or uniforms: a. The clot
larisa [96]

Answer:

a. The clothing must not be suitable for everyday use and must be required as a condition of the job.

Explanation:

For the cost of special work clothes or uniforms to be deductible by the IRS, there must be a number of requirements, it is necessary that work clothes are required as a working condition and that the clothes are used only in the work environment, and not for the employee's personal use.

It is also necessary that the uniforms guarantee the conditions in accordance with the function performed, adding protection instruments when necessary for the health and safety of the employee, in addition, the costs with work clothes can be deductible when they present company logos by example, attesting that such clothing is not for personal use outside the workplace.

4 0
3 years ago
Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales o
LenaWriter [7]

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

  1. and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
  2. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

6 0
3 years ago
Find the sticker price for a vehicle with the following features and costs: Suggested retail price of $13,760, destination charg
deff fn [24]

Answer:

$15,780

Explanation:

The sticker price for a vehicle with all the features is the total of all the given cost elements.

These include the retail price, destination charge, cruise control, custom sound etc.

Hence, the sticker price for the vehicle

= $13,760 + $475 + $800 + $235 + $510

= $15,780

6 0
3 years ago
From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, amount of Federal Re
alexandr402 [8]

Answer: The correct answer is choice A - a huge increase in the monetary base.

Explanation: From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2008, the amount of Federal Reserve assets rose, leading to a huge increase in the monetary base.

4 0
4 years ago
Interference from differences in personality or status is called​
klemol [59]

The interference of personality or status differences is called personality traits, that is, a way developed by psychologists to organize different personalities according to certain dimensions.

<h3>The Big Five Personality Traits </h3>

This is one of the most accepted approaches today, which divides the personality into the following traits:

  • Opening
  • Conscientiousness
  • Extroversion
  • Agreeableness
  • Neuroticism

Each of the traits encompasses different personality facets that help identify which one individual has more or less of compared to another individual.

Therefore, today's organizations need to understand the personality traits of their employees through testing and analysis, to better understand the motivation of each individual and create an organizational culture based on diversity and development.

Find out more information about personality traits here:

brainly.com/question/18782358

3 0
2 years ago
Other questions:
  • Most CLEP exams correspond to _____ college courses.
    5·2 answers
  • Which of the following statements is correct?
    11·1 answer
  • Foreign currencies that are deposited in banks outside the home country are known as A. Eurobond. B. Eurocurrencies. C. foreign
    7·1 answer
  • Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. Ho
    12·1 answer
  • A grocery store has three open checkout lanes. On average, 45 shoppers arrive at these lanes per hour. The coefficient of variat
    7·1 answer
  • Carolyn has an AGI of $38,000 (all from earned income), two qualifying children, and is filing as a head of household. What amou
    14·1 answer
  • Bundling raises higher revenues than selling the goods separately when:
    14·1 answer
  • Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.
    13·1 answer
  • Assume that the current price of a stock is $80 and that 1 year from now the stock will be worth either $90 or $75. The exercise
    12·1 answer
  • Frankie's Chocolate Co. reports the following information from its sales budget:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!