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OLEGan [10]
3 years ago
7

A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project ha

s a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project
Business
1 answer:
givi [52]3 years ago
3 0

Answer:

$163,100

Explanation:

First find the present value of cashflows at year 1 and 2

<u>PV of  $82,400;</u>

PV = FV/(1+r)^n

PV = 82,400/(1.1275)^1

PV = $73082.0399

<u>PV of  $148,600;</u>

PV = FV/(1+r)^n

PV = 148,600 /(1.1275)^2

PV = $116,892.2473

From the cumulative present value of 303,764.34, find the balance after deducting the above PVs;

PV of cashflow yr3 = $303,764.34 -$73082.0399 -$116,892.2473

PV of cashflow yr3 = $113,790.053

Next, calculate year 3's cashflow;

Year 3 cashflow = 113790.053(1.1275)^3

Year 3 cashflow = $163,099.996

Expected cashflow in third year is approximately $163,100

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Answer:

earning money now.

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3 0
11 months ago
we would expect a(n) (fill in the blank) firm to have the highest inventory, while a(n) (fill in the blank) firm should have the
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5 0
1 year ago
Trent Automobiles Inc. was expecting a large shipment of scrap metal a week earlier. As the shipment did not arrive on time, the
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Answer:

Lack of efficiency.

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As Trent Automobiles Inc. was expecting a large shipment of scrap metal and due to the fact that it could not arrive on time, the only way to compensate the loss was to make an urgent order for same quantity of scrap metal from a local manufacturer, which led the company to compromise on the quality. If proper track was kept and all the upcoming scenarios had been calculated before hand with a ready substitute raw materials before hand, this would have been not the result. Thus, this indicates a complete lack of efficiency from the side of management of the company.

8 0
3 years ago
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Answer:

the contract is a. void.

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if it was Inez who came into the contract, then the contract would have been legally binding.

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3 years ago
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