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jek_recluse [69]
3 years ago
10

Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV?

Note that a project's expected NPV can be negative, in which case it will be rejected.r: 10.00%Year 0 1 2 3Cash flows −$950 $500 $400 $300a. $54.62b. $57.49c. $60.52d. $63.54e. $66.72
Business
1 answer:
diamong [38]3 years ago
8 0

Answer:

NPV= $60.52

Explanation:

Giving the following information:

Robbins Inc. is considering a project that has the following cash flow: −$950 $500 $400 $300

Cost of capital= 10.00%

To calculate the net present value we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

For example= Year 3: 300/1.10^3= 225.39

NPV= $60.52

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I would say be unclean, they cant be unclean
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3 years ago
Evergreen Corporation distributes land with a fair market value of $200,000 to its sole shareholder. Evergreen's tax basis in th
Lady_Fox [76]

Answer:

True

Explanation:

As for calculating the gain or loss on distribution of any asset, in any case the company shall consider the fair market value at the time of distribution, and accordingly, the gain or loss shall be:

Fair market value - Tax basis of such asset.

Here, in the given instance

Fair market value of land = $200,000

Tax basis of land = $50,000

Thus, gain on distribution = $200,000 - $50,000 = $150,000

This will not be different in any case, whether the earnings are positive or negative.

Therefore, the statement is True

4 0
3 years ago
According to Brynjolfsson and McAfee (2014), Tyler Cowen think that information and communication technology is not a general pu
Elena L [17]

Answer:

False

Explanation:

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8 0
3 years ago
When Bad Frog Brewery, Inc., placed a label on its product showing a frog with unwebbed fingers with its middle finger extended,
Nutka1998 [239]

Answer:

The appellate court ruled in favor of Bad Frog (lower court had ruled in favor of the New York State Liquor Authority) arguing that the label did not portray or concern an unlawful activity, and the state's authority couldn't prove it was protecting children from vulgar images.

The initial problem related to the repeated denial of the New York State Liquor Authority to approve Bad Frog's label even after the company had changed the label to make it less obscene. Bad Frog sued the New York State Liquor Authority and the District Court ruled against them. Then Bad Frog appealed and won.

6 0
2 years ago
Which type of account typically has low liquidity?
il63 [147K]

Option (d) is the correct option.

<u>Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately. </u>

Further Explanation:

Liquidity:

Liquidity is a measurement of an asset’s ability to convert it into cash. If any specific asset can be converted into cash quickly, then it is considered a liquid asset.  

Example: Stock, Debtors, Marketable securities are liquid assets as they can be converted into cash very quickly. On the other hand, land and building are not liquid assets as they would require a longer time to convert into cash.

Low liquidity account:

<u>Certificate of deposit is a low liquidity account. </u>

Certificate of deposit:

Certificate of deposit is a saving account. In certificate of deposit, the customer of the bank deposits lump-sum amount in the bank account, and it can be withdrawn after a specified time. Certificate of deposit has a higher interest rate than a normal saving account. Generally, the tenure of the certificate of deposit varies from 1 year to 10 years. The customer of the bank cannot withdraw the funds before the maturity date of the deposit.

Certificate of deposit has lower liquidity because the funds cannot be withdrawn before the maturity date of the deposits. Once deposited, the funds can be converted to cash after the maturity period, which varies from 1 year to 10 years as per the agreement with the customer.  

<u>Certificate of deposit has low liquidity because the money can be withdrawn after the maturity period. It cannot be converted to cash immediately </u>

<u> Checking account, savings account, and money market account has high liquidity as money can be readily withdrawn from these accounts. </u>

<u> </u>

Learn more:

1. Learn more about cash budget

brainly.com/question/12985585

2. Learn more about the role of money

brainly.com/question/12984919

3. Learn more about the cash deficiency

brainly.com/question/12981857

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Money and Banking

Keywords: Account, Bank account, Bank, Liquidity, High liquidity, Low liquidity, Saving account, Checking account, Money market account, Certificate of deposit, Converted to cash.

3 0
3 years ago
Read 2 more answers
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