Answer:
c. NPV will decrease by $1,621.23.
Explanation:
Missing word <em>"Hint: what happens to cash flow when net working capital increases and decreases? a. NPV will not be affected because the $25,000 will all be recouped b. NPV will decrease by $25,000. c. NPV will decrease by $1,621.23. d. NPV will increase by $1,864.41. 19"</em>
Present Value of Net Working Capital investment in Year 5 = $25000 / (1+15%)^5
= -$25,000 / (1+15%)^5
= -$25,000 / 2.01135719
= -$12,429.418
= -$12,429.42
Present Value of Net Working Capital Recovered in Year 6 = $25000 / (1+15%)^6
= $25,000 / (1+15%)^6
= $25,000 / 2.31306077
= $10,808.1899
= $10,808.19
Effect on the project's net present value = Present Value of Net Working Capital investment in Year 5 + Present Value of Net Working Capital Recovered in Year 6
= -$12,429.42 + $10,808.19
= -$1,621.23
Therefore, NPV will decrease by $1,621.23.
Answer: See explanation
Explanation:
West Division's residual income in August would be calculated as the difference between the Net Operating Income and the Minimum Required Return.
= $42,200 – ($240,000 x 19%)
= $42,200 - $45,600
= $(3,400) Negative
Failure to repay credits is the major
problem faced by less developed countries in financing development. And in addition to that the present procedure
came to a head when global leaders assembled in Addis Ababa, Ethiopia, on 13-16
July 2015 at what’s formally called the Third International Conference on
Financing for Development. To see all of Citiscope’s recording on
the Financing for Development process from an urban viewpoint.
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Answer:
The price 3-years from now will be of $52,50
Explanation:
<u>We solve for g using the Gordon model:</u>
As we don't know the rate of return we solve ofr that fist using CAPM:
CAPM (Capital Assets Price Model)
risk free 0.049
market rate 0.099
premium market = market rate - risk free 0.05
beta(non diversifiable risk) 0.9
<em>Ke 0.09400</em>
We plug that in the gordon equation and solve for g:
2.25 = 0.094 x 46 - g x 46
(2.25 - 4.324) / 46 = -g
-0.0450869565217391 = -g
g = 0.045087
In the gordon model the price of the stock increases at the grow rate:
as P = D/(r-g)
P1 = D(1+g)/r-g)
P1 / P = D(1+g)/(r- g) / D/(r- g) = 1 + g
Answer:
The alternative including its query is presented throughout the explanation section below.
Explanation:
(a)
The strategic petroleum insufficiency should also be,
=
=
This means that the financial institution would have to start reducing its loan payments as well as currency exchange by $90.
(b)
Yes, you can significantly raise your loan deposit accounts secure manner. Early years setting throughout Serenity Bank would be increased, therefore the proportion of total reserves would indeed be $90.
The margin requirement of spending in the market hasn't started to change since the percent impact would be similar. Robin's account was whittled down by $100, as well as Adam's payment was continued to increase whilst also $100. So there's no modification throughout the monetary policy.