Answer:
Net Present value = -$40,221
Explanation:
The net present value is the sum of the discounted cash-flows over the life of the project from t=0 to t=n.
Year Cash-flow PVIF Present Value
0 (55,500) 1.0000 (55,500)
1 2,700 0.9091 2,455
2 2,700 0.8264 2,231
3 2,700 0.7513 2,029
3 11,400 0.7513 <u>8,565 </u>
Net Present value (40,221)
The salvage value is treated as a cash-flow at the end of year 3 as that's the last year in which the project records a cash inflow. In this question, a negative net present value implies that the project is not profitable, and should therefore not be undertaken.
Answer:
between 2010 and 2015 he only grown $50.
Explanation:
That why he come from $110 to $160. In the middle of the years he only grown $50.
I hope it help you understand.
Answer:
A government deficit budget will increase
Explanation:
This is because the expenditure will be more for the income the government is earning to bear, also there will be a fall in tax revenue..
The Answer is that the present value of $100 is $100.
Because this $100 dollar is deposited today so the time is equal to zero and when time is zero the value of amount is the value of amount itself.
As the account is paying 8% compounded semi annually for two years but that does not have any effect on the $100 you are depositing today.
If the question is in such a way that they asked for the present value of $100 that was deposited two years ago than we calculate.
