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Crazy boy [7]
3 years ago
8

Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $850 2 1,100 3 1,300 4 1,150 Re

quired: (a) If the discount rate is 10 percent, what is the present value of these cash flows? (b) What is the present value at 17 percent? (c) What is the present value at 27 percent?
Business
1 answer:
Gwar [14]3 years ago
8 0

Answer:

The present value at the discount rate of 10% is $3,443.99  ,$2,955.44 at 17% and $ 2,428.00   at 27%

Explanation:

The present were arrived at by discounting each year's cash flow to present value by applying discounting  factor given  as 1/(1+r)^n where r is the discounting rate and n is the number of applicable time horizon.

Kindly find attached spreadsheet showing full computations of the present values

Download xlsx
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All of the following are methods of evaluating the risk of a project except multiple choice the net present value profile a mont
Eduardwww [97]

The answer choice that is NOT a method of evaluating the risk of a project is its B. Profile

<h3>What is Risk Management?</h3>

This refers to the identification of risk in any venture and the evaluation of the response to risk factors.

Hence, we can see that when a person is evaluating the risk of a project, he would have to check the net present value, the coefficient of variation, etc, but the evaluation of the profile is not a method of risk evaluation of the project.

Read more about risk management here:

brainly.com/question/13760012

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6 0
2 years ago
___________ income is the amount that is used to calculate how much tax you owe.
snow_tiger [21]

Answer:

<em>Taxable Income</em> is the amount that is used to calculate how much tax you owe.

8 0
3 years ago
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formul
Alexandra [31]

Answer:

$981,000 - Total Building Cost

Explanation:

To answer this question, we were told that the customer wants to build a moderate 3,800 square foot home. However, although it says with no utilities, utility cost will be applicable because it represents what is needed by the builders and engineers to get their work done on the vacant lot of land.

Therefore,  the cost to build = Administrative cost +  Building cost (moderate) + appliances cost + utilities cost

= $40,000 + (220 x 3800 square foot) + $45,000+ $60,000

=$40,000 + $836,000 + $45,000+ $60,000

= $981,000

6 0
3 years ago
If US workers can produce everything in less time than Mexican workers, it is not possible for the US to gain from trade with Me
Brums [2.3K]

Answer:

False

Explanation:

False because the theory of comparative advantage applies

5 0
4 years ago
ring its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income D
miv72 [106K]

Answer: See explanation

Explanation:

The retained earnings will be calculated as:

= Begining retainers earnings + Net income - Dividend.

Year 1:

Retained earning = 0 + 2000 - 1700

= 300.

Year 2:

Retained earning = 300 + 2600 - 1600

= 1300

Year 3:

Retained earning = 1300 + 2600 - 2200

= 1700

Year 4:

Retained earning = 1700 + 5900 - 2900

= 4700

Year 5:

Retained earning = 4700 + 8800 - 3100

= 10400

3 0
3 years ago
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