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rusak2 [61]
3 years ago
13

Using the method of your choice, calculate the Net Present Value of the following cash flows. Assume that the required return on

this project is 15%
Project A
Initial Cost -$150
Year 1 $175
Year 2 $100
A. $15
B. $35
C. $55
D. $70
E. $78
Business
1 answer:
mezya [45]3 years ago
8 0

Answer:

E. $78

Explanation:

The computation of the net present value is shown below:

Net present value is

= Initial investment + year cash inflows ÷  (1 + discount rate)^number of years + year cash inflows ÷  (1 + discount rate)^number of years

= -$150 + $175 ÷ 1.15 + $100 ÷ 1.15^2

= $77.78

= $78

Hence, the correct option is E. $78

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Angela wants to calculate her take-home pay. She earns $1,377 monthly. She pays federal tax of $200, state tax of $41.31, and 7.
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Angela wants to calculate her take-home pay. She earns $1,377 monthly.
She pays federal tax of $200
state tax of $41.31,
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Let's solve for Angela's monthly net pay.
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3 years ago
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Suppose two companies own adjacent oil fields. Under the two fields is a common pool of oil worth $60 million. For each well tha
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Answer:

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