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makkiz [27]
3 years ago
9

A proposed nuclear power plant will cost $2.9 billion to build and then will produce cash flows of $370 million a year for 15 ye

ars. After that period (in year 15), it must be decommissioned at a cost of $970 million. What is project NPV if the discount rate is 4%? What if it is 16%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places.)
Business
1 answer:
s2008m [1.1K]3 years ago
8 0

Answer:

Explanation:

This question can be solved using a financial calculator. Use the cashflow button (CF) on Texas Instruments BA II Plus with the following inputs;

CF0 = -2,900,000

C01 = 370,000,000

F0,1 = 14 (Since the recurring equal cashflows occurs for 14 years; use frequency function and input 14)

For year 15, find the net cashflows since there's a cost of $970 million;

C02 = $370 - $970 = -$600 million

I = 4%

then compute net present value; CPT NPV = $3,572,296,782 or $3.572 Billion

If 16%, everything remains the same except for I= 16%

NPV = $1,955,329,577 or $1.955 Billion

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What type of business sells to the end consumer
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Answer:

business-to- consumer (B2C)

Explanation:

Commerce is a business model which typically involves the buying and selling of goods or products at a given price.

Generally, commerce comprises of four (4) business models and these are;

1. Business to Business (B2B).

2. Consumer to Consumer (C2C).

3. Business to Government (B2G).

4. Business to Consumer (B2C).

A Business to Consumer (B2C) can be defined as a market which typically involves businesses selling their goods and services directly to the end consumers for their personal use.

Hence, the type of business that sells to the end consumer is known as business-to- consumer (B2C).

Some examples of companies that engage in the Business to Consumer (B2C) business model are; Amazon, Goo-gle, Walmart, Alibaba, Uber, LinkedIn, etc.

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3 years ago
The largest proportion of federal revenues comes from
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The largest proportion of federal revenues comes from C. Personal income taxes.
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3 years ago
Laura, a sales manager at Dexter Inc., claims that labor and management are rivals for most organizations. Brooke, the HR manage
Afina-wow [57]

Answer:

Dexter Inc.

The statement that best supports Brooke's perspective is:

Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams.

Explanation:

When labor and management act as rivals or adversaries, it does not benefit their organizations.  They should find common grounds for cooperation.  Organizations should involve their employees in more decision-making.  Despite their incongruent goals, unions and management should find win-win solutions.  Paying employees a living wage does not impoverish the organization.  On the contrary, everybody is greatly enriched.

3 0
3 years ago
The study of large-scale economic phenomena is calle
Grace [21]
The answer is macroeconomics
7 0
3 years ago
Consider three closed economies. In the first economy, households spend $0.50 of each additional dollar they earn and save the r
aleksklad [387]

Answer:

b. In the first economy, the spending multiplier is greater than in the second economy. In the third economy, the spending multiplier is undefined

Explanation:

This can be easily understood by going through some calculations in a spending multiplier formula.

WORKINGS

The formula for Spending Multiplier = \frac{1}{MPS}

Spending Multiplier

Economy 1: Multiplier = \frac{1}{0.5} = 2

Economy 2: Multiplier = \frac{1}{1} = 1

Economy 3: Multiplier = \frac{1}{0} = undefined

Note: MPS can be abbreviated as Marginal propensity to save

As we can see here economy 1 is 50% greater than economy 2 and economy 3 is undefined because they spend whole dollar they earn additionally.

On behalf of the above calculations,  option B is a perfect match!

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3 years ago
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