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
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

You might be interested in
Bristlebird Corporation (E&P of $700,000) has 3,000 shares of common stock outstanding. Juan owns 1,500 shares and his wife,
Schach [20]

Answer:

The correct answer is

Juan has dividend income of $250,000.

good luck ❤

6 0
3 years ago
WHAT DID dred scott do (will give brainly to write answer)
jok3333 [9.3K]

Answer:

id k

Explanation:

8 0
2 years ago
Read 2 more answers
your customer feels overburdened with taxes and would like relief. after you discuss the abc municipal bond fund with her and ad
never [62]

(c) dividends are federally tax exempt, but capital gains are subject to taxation.

What is dividend?

A dividend is a reward paid to the shareholders for their investment in a company's equity, and it usually originates from the company's net profits.

A dividend is also the distribution of some of a company's earnings to a class of its shareholders. Dividends are usually paid in the form of a dividend check. However, they may also be paid in additional shares of stock.

Monthly dividend stocks are securities that pay a dividend every month instead of quarterly or annually. More frequent dividend payments mean a smoother income stream for investors.

They're paid out of the earnings and profits of the corporation. Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.

In order to collect dividends on a stock, you simply need to own shares in the company through a brokerage account or a retirement plan such as an IRA. When the dividends are paid, the cash will automatically be deposited into your account.

To learn more about Dividends from the given link

brainly.com/question/2960815

#SPJ4

6 0
1 year ago
martina advises her tax client, breslin baked goods, to disclose a matter by attaching a special form to its corporate tax retur
Maslowich

In  Case whereby martina advises her tax client, breslin baked goods, to disclose a matter by attaching a special form to its corporate tax return. breslin refuses and threatens to replace martina with another cpa what Martina should do under the tax profession's ethics standards is a) Consider whether to withdraw from the engagement and reevaluate the relationship.

<h3>What is  Ethical standards?</h3>

Ethical standards can be described as the set of principles established by the founders of the organization  so as to be able to  communicate its underlying moral values.

In conclusion, from the case above, she can withdraw from the engagement and reevaluate the relationship.

Therefore option A is correct.

Learn more about ethics at:

brainly.com/question/24606527

#SPJ1

missing options:

Martina advises her tax client, Breslin Baked Goods, to disclose a matter by attaching a special form to its corporate tax return. Breslin refuses and threatens to replace Martina with another CPA. Which statement best describes what Martina should do under the tax profession's ethics standards in this situation?

a) Consider whether to withdraw from the engagement and reevaluate the relationship.

b) Terminate the engagement and report Breslin to the IRS Office of Professional Responsibility.

c) Draft a memo for the files indicating that Breslin is a difficult client.

d) File the return in the manner specified by the client (without the disclosure).

7 0
1 year ago
when a seller advertises an item at an unbelievably low price to lure customers into a store, and then refuses to sell the adver
amm1812

When a seller advertises an item at an unbelievably low price to lure customers into a store, and then refuses to sell the advertised item and instead pushes a similar item with a much higher price and higher margin, the seller is participating in the illegal practice of bait and switch.

When deciding who is the customer, the focus should always be on the people using the product. They are the ones for whom value is being created and the reason why the market and the product exist. This can be a little tricky when a company sells its product as a component of another company's product.

Customers are people who use or need your products/services. The customer-centricity debate wants you to put them at the heart of your work. It makes sense. You'd like to create things that matter and make a difference.

A consumer is any person or group who is the final user of a product or service. Here are some examples: A person who pays a hairdresser to cut and style their hair. A company that buys a printer for company use.

Learn more about customers here brainly.com/question/380037

#SPJ4

6 0
2 years ago
Other questions:
  • What is meant by management being multidimensional​
    7·2 answers
  • The investment component of GDP measures spending on__________
    13·1 answer
  • Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $2500
    14·1 answer
  • Bunny's Furniture Warehouse accepted a national credit card for a $3,300 purchase. The Cost of the Goods Sold is $1,300. The cre
    7·1 answer
  • Greenbelt construction has been a successful small home-building firm for years. the owner pays subcontractors slightly more tha
    15·1 answer
  • CodeDesk Inc matches programmers with freelance jobs. It has 35 employees who staff its online chat room. It receives, on averag
    7·1 answer
  • For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). Th
    9·1 answer
  • Crane Co. reports net income of $64,000. Partner salary allowances are Pitts $13,000, Filbert $4,000, and Witten $8,000. Indicat
    9·1 answer
  • Violet is putting together a cross-functional team to do a high-level analysis of the organizational structure. She explains to
    10·1 answer
  • Carol Byrd gets a student rate of $30.00 a month for health insurance. There is a $250 deductible. She recently received treatme
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!