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Mandarinka [93]
3 years ago
15

The following transactions were completed by the company.

Business
1 answer:
Serhud [2]3 years ago
8 0
C I guess..............
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After identifying and performing the preliminary classification of an organization’s information assets, the analysis phase move
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Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservati
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Price discrimination will result in consumers with more elastic demand purchasing more of the good than when a single price is c
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3 years ago
Lester's is a globally diverse company with multiple divisions and a cost of capital of 15.8 percent. Med, Inc., is a specialty
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Answer:

both companies should invest because the NPV of both companies are positive

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 = - $8.4 million

Cash flow in year 1-7 =  $2.2 million

NPV of Lester with I of 15.8% = 0.54 million

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To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

0.54

1.12

5 0
3 years ago
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