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
Allisa [31]
3 years ago
9

The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

p." As a result, the cemetery project will provide a net cash inflow of $104,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. The project requires an initial investment of $1,570,000. What is the NPV for the project if Yurdone's required return is 12 percent?
Business
1 answer:
Crank3 years ago
8 0

Answer:

-$414,444.44

Explanation:

The computation of the net present value is shown below:

Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)

= -$1,570,000 + $104,000 ÷ (12% - 3%)

= -$1,570,000 + $1,155,555.56

= -$414,444.44

Hence, the net present value is -$414,444.44

Since the net present value comes in negative so the project is rejected

         

You might be interested in
Marginal analysis studies how individuals decide: a. whether to go to college. b. whether to live on the margin of society. c. h
Andreas93 [3]

Answer:

Correct option is (d)

Explanation:

Marginal analysis is a decision making tool used by managers to identify if an additional effort on an activity or incurring additional cost would be beneficial or yield more profits.

In other words, individuals decide on the basis of marginal analysis whether to work more or a activity or not based on the outcome. If the outcome is profitable, then the individual would choose to work harder and vice versa.

8 0
3 years ago
Why do you think economists can be certain that every
Aleonysh [2.5K]

Answer:

En esta primera parte del libro estudiamos lo que para muchos economistas es la pregunta más

importante de la economía: ¿Por qué algunos países tienen mayores niveles de ingreso por

habitante que otros?

En el capítulo 2 definimos el crecimiento económico y presentamos distintas herramientas

útiles para medirlo y analizarlo. Además, presentamos una breve historia del crecimiento

económico, con especial énfasis en la evolución de la economía argentina en el contexto

mundial.

El capítulo 3 es una introducción a la teoría del crecimiento económico. Presentamos allí un

esquema analítico sencillo, en el cual la inversión y el desarrollo tecnológico aparecen como

los determinantes directos del crecimiento. Además, explicamos algunos de los factores que los

economistas han identificado como determinantes más profundos del crecimiento – aquellos

factores que definen el grado de inversión y de desarrollo tecnológico.

Explanation:

7 0
3 years ago
Many organizations are adapting to the environment by developing more of a(n) _____ relationship rather than a(n) _____ relation
Bingel [31]

The development of the last decades, population growth and concentration in cities, tensions and lack of resources, as well as the challenge posed by climate change, have contributed so that in recent years many organizations modify their lines of action and actions regarding its competitors, adopting less aggressive measures that contribute to the change and strengthening of healthy social relations.

Answer

b. partnership, adversarial

Many organizations are adapting to the environment by developing more of a <em>partnership</em> relationship rather than an adversarial relationship with competitors.

6 0
3 years ago
Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurre
tiny-mole [99]

Answer:

$43,745

Explanation:

Calculation for what the Capital account reported on the Statement of Owner's Equity at the end of the month would be

Using this formula

Ending Capital Balance = Cash (1)+ Photography equipment (2) +Cash for services provided (4)+Services to customers on account (6)- Monthly rent(7)- Utility (9)

Let plug in the formula

Ending Capital Balance = $13,800 + $23,000 + $6,000 + $3,050 - $1,800 - $305

Ending Capital Balance= $43,745

Therefore the balance in the Capital account reported on the Statement of Owner's Equity at the end of the month would be: $43,745

5 0
3 years ago
Piedmont Hotels is an all-equity firm with 48,000 shares of stock outstanding. The stock has a beta of 1.19 and a standard devia
user100 [1]

Answer:

The firm set as the required rate of return for the project is 14.732%

Explanation:

For computing the required rate of return, the following formula should be used which is shown below:

= Risk free rate of return + (Beta × market risk premium) + adjustment

where,

Risk free rate of return is 4.1%

Beta is 1.19

Market risk premium is 7.8%

Adjustment is 1.35%

Now put these values to the above formula

So, the value wold be equal to

= 4.1% + (1.19 × 7.8%)+ 1.35%

= 4.1% + 9.28% + 1.35%

= 14.732%

The standard deviation is irrelevant. Therefore, it is not considered in the computation part.

Hence, the firm set as the required rate of return for the project is 14.732%

8 0
3 years ago
Other questions:
  • Bond price volatility varies directly with the term to maturity and directly with the coupon. Group of answer choices True False
    7·1 answer
  • About _____ percent of those who use tobacco are aged 18 to 25.
    11·1 answer
  • Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day. For the month of
    14·2 answers
  • Using the data calculate the balance on current account for this economy.
    8·1 answer
  • Which factor is least important when choosing a financial service provider?
    7·2 answers
  • The wages paid to milkshake makers increases. Does the supply curve for milkshakes shift? If so, does it shift to the right or t
    12·1 answer
  • Presented below is pension information for Ceylan Inc.for the year 2019: Service cost $82,000 Interest on projected benefit obli
    6·1 answer
  • Females, it is said, make 70 cents to the dollar in the United States. To investigate this phenomenon, you collect data on weekl
    7·1 answer
  • A serial process has 4 steps – A (4), B(3), C(3), D(2) – that have to be performed in this order. Numbers in parentheses are the
    10·1 answer
  • a project requires an investment of $1,400 and has a net present value of $400. if the internal rate of return is 12%, what is t
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!