Cost = $4,000
Revenues = $3,200 per year
Life = 5 years
Payback period calculation:
Year ----- Cash flow -------- Investment
Yr 0 ----- ------------ -4,000
Yr 1 ------ 3,200 ----------- -800
Yr 2 ------ 3,200 -------------- 0
Payback period lies between year 1 and 2.
Therefore,
Payback period = 1+ 800/3200 = 1+0.25 = 1.25 years
Answer:
NPV = $74,951.80
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $700,000
Cash flow each year from 1 year 8 = $156,000
I = 12%
NPV = $74,951.80
To find the NPV using a financial calacutor:
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
I hope my answer helps you
It should be $2.16 which is the 8% since even though they require 17% what is projected to be available is only 8%
Answer:
13.48%
Explanation:
Calculation for the required return for the company's stock using this formula
Required return = (D1/P0) +g
Let plug in the formula
Required return = [$1.12(1 + 0.115) / $62.91] + 0.115
Required return= [$1.12(1.115) / $62.91] + 0.115
Required return =(1.2488/$62.91)+0.115
Required return=0.019850580194+0.115
Required return = 0.1348 *100
Required return =13.48%
Therefore the required return for the company's stock will be 13.48
In <u>individualist </u>cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.
economic incentives in private business
Monetary structures in individualist societies frequently offer incentives and rewards for an individual's private running of a business. Economic incentives are motivations to do particular things. They urge people to go after their financial goals. Money is a financial incentive to start a business or look for employment. Improvement can be encouraged by the number of tax breaks, grants, and Economic incentives. Incentives are exemptions, credits, deductions, or exclusions that lower a company's burden to the state or federal government in exchange for taking specific actions.
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