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Elden [556K]
3 years ago
5

3. You run a construction firm. You have just won a contract to construct a government office building. It will take one year to

construct it, requiring an investment of $10 million today and $5 million in one year. The government will pay you $20 million upon the building’s completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate (i.e., the discount rate) is 10%. What is the NPV of this opportunity?
Business
1 answer:
Gre4nikov [31]3 years ago
3 0

Answer:

NPV= $1,983,471.1

Explanation:

Giving the following information:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

NPV= -Io + ∑[Rt/(1+i)^t]

where:

R t​     =Net cash inflow-outflows during a single period t

i=Discount rate of return that could be earned in alternative investments

t=Number of timer periods

NPV= -10,000,000 - 5,000,000/1.10 + (20,000,000/1.10^2)

NPV= $1,983,471.1

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Which of the following statements is true in a capitalist economy?
zepelin [54]

The answer is: b. Markets motivate individual actors to make economic decisions.

In a capitalist economy, the government has very little influence to intervene in the economy. The market is solely controlled by the power of supply and demand. When a lot of people demanded a certain type of products, people who will gain the most profit would be those who are bale to make economic decisions to fulfill the demand in the market.

6 0
3 years ago
True or False: An interest-bearing account is an account that generates interest income on the available balance in the account.
Korvikt [17]

Answer:

False

Explanation:

Interest Bearing Account is an account which generates interest income over a specified period of time. Certificate of Deposit is an example for the interest bearing account. So, simply saying that An interest-bearing account is an account that generates interest income on the available balance in the account is wrong.

6 0
3 years ago
Edie Manson worked the following schedule: Monday, 8 hours; Tuesday, 9 hours; Wednesday, 7 hours 48 minutes; Thursday, 8 hours;
melomori [17]

Answer:

hundredth = 40.48 which is 40.8

Quarter = 40.48 which is 40.75

Explanation:

The total number of hours worked in all days of the week for Manson is 40 hours 48 minutes.

In hudredth time the conversion of 40.48 equals 40.8 but in quarter time to round time to nearest quarter hour, we have to round the times within 7 minutes of a 15 minute mark to that 15 minutes.  Since 48 minutes are only 3 minutes more than 45 minutes, we round back to 45 minutes which is 0.75 in decimal.

Hence the hundredth hour timing is preferred for Edie Manson because it shows a higher time for hours worked and potentially more pay.

4 0
3 years ago
Newell Rubbermaid Inc. manufactures and markets a broad array of office products, tools and hardware, and home products under a
ValentinkaMS [17]

Income Taxes Using appropriate headings and subtotals prepare a multiple-step consolidated income statement.

An Income tax is a tax imposed on people or entities in admire of the income or profits earned by way of them. income tax generally is computed because the manufactured from a tax price instances the taxable earnings. Taxation fees can also vary by using the kind or characteristics of the taxpayer and the type of profits.

                Consolidated Income statement

                Particulars                                    Amount

Net Sales                                               $ 5,864. 6

Less: Expenses                                      

Cost of Products sold                         = $ 3,6594.4

           Gross Profit                               = $2,205.2

Less: Operating expenses                            

Selling general, and administrative expenses    $ 1,515.3

Other expenses                                                     $ 432.7

          Operating Income                                   = $ 275

Less: Non-operating expenses

Interest and other non-operating expenses   $ 104.7

 Income before Taxes                                   = 152.5

Less: Income Tax expense                            $ 17.9

 Income after Taxes                                   = $134.6

Less: Loss on sale of Discontinued Operations

(net of income taxes)                                            $9.4

          Net Income                                                   $ 125.2

Learn more about  Net Income here:-brainly.com/question/15530787

#SPJ4

6 0
1 year ago
Addison Co. budgets production of 2,790 units during the second quarter. Other information is as follows: Direct labor Each fini
Doss [256]

Answer and Explanation:

1. The preparation of direct labor budget is given below:-

Direct labor budget

Units to be produced              2,790

Hours required per unit          5

Total labor hours needed 13,950

(2,790 × 5)

Labor rate per hour                $10

Direct labor budget               $139,500

(13,950 × $10)

2. The preparation of factory overhead budget is given below:-

Total labor hours needed                 13,950

Variable overhead rate per hour       $12

Budgeted variable overheads           $167,400

(13,950 × $12)

Budgeted Fixed overheads              $580,000

Budgeted total overheads                $747,400

8 0
3 years ago
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