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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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What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?
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Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

Examples are luxury goods such as high end cars and expensive jewelry.

4 0
3 years ago
Phishing is looking for and reporting online scams.<br><br> True or <br> False
MAXImum [283]
False. Phishing is usually considered emails that are sent that look genuine but are actually from scammers trying to obtain personal or financial information. 
4 0
3 years ago
Read 2 more answers
Consider the following two countries. Assume they produce only these two goods. Note that productivity is now measured in how ma
Ainat [17]

Answer:

A. 1/3 computers

B. 0.6 computers

Explanation:

A. The opportunity cost incurred by the US to make cars is the number of computers it would have to give up to make a car.

The US can either make 12 cars or 4 computers. For every car made therefore the US forgoes;

= 4/12

= 1/3 computers.

B. The same logic applies to Japan. They can either make 10 cars or 6 computers.

Their opportunity cost for cars is therefore;

= 6/10

= 0.6 computers

5 0
3 years ago
Administrative assistants are categorized in what occupational group?
oksano4ka [1.4K]

Answer:

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Explanation:

3 0
2 years ago
On May 1, Year 1, Benz’s Sandwich Shop loaned $18,000 to Mark Henry for one year at 9 percent interest. Required a. What is Benz
ehidna [41]

Answer:

a) $1080

b)$19080

c) Loan given | -$18000

d)$540

e)$19620

f)loan | 18000

Interest received | $1620

g)  $1620

Explanation:

a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080

b) The total receivable at december 31,Year = 18000+1080 = $19080

c)  Year 1  :Statement of cash flow

Loan given | -$18000

d) Interest income Year 2 = $18000*9%*4/12 = $540

e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620

f) Cash flow from investing activities :

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           Interest received | $1620

g)Total interest earned = 18000*9% = $1620

7 0
3 years ago
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