Answer:
The net present value for the project is $14,680.61.
Explanation:
The net present value (NPV) of a project is the sum of the present values of all the after-tax cash flows minus the cost of the project. This can be calculated as follows:
NPV = (First year after-tax cash flows / (100% + Cost of capital)^1) + (Second year after-tax cash flows / (100% + Cost of capital)^2) + (Third year after-tax cash flows / (100% + Cost of capital)^3) + (Fourth year after-tax cash flows / (100% + Cost of capital)^4) + (Fifth year after-tax cash flows / (100% + Cost of capital)^5) + (Sixth year after-tax cash flows / (100% + Cost of capital)^6) - Project cost
NPV = ($13,000 / (100% + 5.00%)^1) + ($15,000/ (100% + 5.00%)^2) + ($18,000 / (100% + 5.00%)^3) + ($20,000 / (100% + 5.00%)^4) + ($24,000 / (100% + 5.00%)^5) + ($30,000 / (100% + 5.00%)^6) - $84,500
NPV = $14,680.61
Therefore, the net present value for the project is $14,680.61.
The answer is true. Temporary accounts are transient accounts that open with no balance at the beginning of each accounting period and close at the conclusion in order to preserve a record of accounting activity during that period.
They consist of the spending accounts, income statements, and income summary accounts. Permanent accounts include cash accounts such as accounts receivable and accounts payable. The terms asset, liability, equity, inventory, balance investments, etc. are other examples of permanent accounts. An account that shuts at the conclusion of each accounting period and has no balance when a new period starts is referred to as a transitory account.
To learn more about accounts, click here.
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Answer:
has specific risk
Explanation:
Standard deviation is a measure of central tendency. It measures the variation of data from a central value. As such variables with high standard deviation have values far from the central value while standard deviation close to the central value is low.
So when individual stocks have higher standard deviation it means prices are less stable than that of market portfolio.
This can be attributed to them having specific risk. The market is not subject to diversification risk so prices tend to fluctuate less
The answer that is being depicted above is red flag. This is
a process or a way of having to provide reasonable explanation or to alert an individual
when there is a problem that is present in means of having to let them know
about it.
