A brown-eyed father and a green-eyed mother have a 25% chance of having a green-eyed child. What is the probability that, in a f
1 answer:
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Answer:
REJECTED
It fails the payback test.
Explanation:
first, we check if payback occurs at year 3;
payback:
-175,000
-65,800
+94,000
<u> +41,000</u>
-105,800
the cashflow until year 3 aren't positive thus, the payback is not achieve
As the discount paymback will make the future cash inflow lower than nominal; the discounted payback will also not be achieve.
Last, let's check if the net present value of the project at 11% is positve:
The project achieve a psoitive value at the discount rate of 11%
But, It will be rejected as it fails the payback tests.
Answer:
$164,313.82
Explanation:
In this question we have to apply the present value formula i.e to be shown in the attachment
Provided that,
Future value = $0
Rate of interest = 9%
NPER = 20 years
PMT = $18,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula the present value is $164,313.82
Answer:
1. $1,821.76
2. 7.87%
Explanation:
We use the PMT formula that is shown in the attachment below:
Provided that
Present value = $75,200
Future value = $0
Rate of interest = 7.6% ÷ 2 = 0.6333333%
NPER = 48 months
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $1,821.76
2. Now the effective annual rate is
= (1 + APR ÷ number of months)^number of months - 1
= (1 + 7.6% ÷ 12)^12 - 1
= 7.87%
