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olasank [31]
3 years ago
10

What is the net present value of the following stream of cash flows if the discount rate is 11.5%?

Business
1 answer:
koban [17]3 years ago
5 0

Answer:

-$86.05              

Explanation:

The computation of the net present value is shown below:

Year       Cash flow       Discount factor @11.5        Present value

0             $379 M          1                                             -$379 M

1              $105 M          0.8968609865                    $94.17 M

2             $78 M            0.8043596292                    $62.74 M

3             $79 M            0.7213987706                      $56.27 M

4             $65 M            0.6469944131                       $42.05 M

5             $65 M            0.5802640476                     $37.72 M    

NPV                                                                            -$86.05    (Difference)  

The discount factor should be computed below

= 1 ÷ (1 + rate) ^ years                                              

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The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the followi
kow [346]

Answer:

The answer is $801,900

Explanation:

Cash received from customers is a line item under operating activities in the cash flow. It is the total amount of money collected from customers for the period.

Cash received from customers equals sales plus decrease in accounts receivable.

Sales = $753,500

Decrease in accounts receivable = $48,400.

Therefore, Cash received from customers = $753,500 + $48,400

$801,900

8 0
3 years ago
Philip oversees the processes of the research and development department of his company. He is responsible for all of the activi
weeeeeb [17]

Answer: Functional manager

Explanation: A functional manager is the individual in an organization saddled with the task of overseeing the successful running of the day to day operations of the organization.

He is always on ground to ensure everything is going on smoothly on a daily and he supervises the various sections of the organization.

8 0
3 years ago
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Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7
mojhsa [17]

Answer:

The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.

Explanation:

Proper year zero cash flow to use in evaluating this project = After-tax value of the land + Cost of manufacturing new plant + Grading Expenses

= $10,100,000 + $21,300,000 + $880,000

= $32,280,000

Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.

NOTE :

- The after-tax value of the land of $10,100,000 should be considered since it is an opportunity cost of capital if the land is used rather than sold.

- The cash outlay of $21,300,000 for the plant cost and the $880,000 for the grading costs are the part of the initial investment in year 0.

6 0
3 years ago
Which of the following communication styles includes the desire to avoid conflict but still tries to manipulate the situation so
Paraphin [41]

Answer:

☆Passive aggressive☆

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•Passive: Developed patterns of avoiding expresing feelings/ emotions.

•Aggressive: can involve manipulation or

intimidation to achieve an end goal.

6 0
3 years ago
What will be the nature of balance of trade if imports are of manufactured goods?
Radda [10]

Answer:

b). Positive

Explanation:

The nature of the balance of trade if imports are of manufactured goods is POSITIVE

Considering that Balance of trade is a term that is used to describe the difference between the imports and exports value of a country over a given period.

Hence, when a country manufactured goods instead of importing them, the balance of trade is believed to be Positive.

On the other hand, when a country imports goods instead of manufacturing them, the balance of trade is believed to be negative.

7 0
3 years ago
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