1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mafiozo [28]
4 years ago
14

A company is evaluating an expansion. This capital investment will require a cash outflow today of $6,500,000. The firm estimate

s that the investment will pay out a cash flow of $900,000 per year for the next 12 years, and then nothing after. The risk adjusted discount rate required on this project is 8%, calculate the net present value of this investment.
Business
1 answer:
Inga [223]4 years ago
8 0

Answer:

Net present value of this project is $282470.22

Explanation:

Present value of inflows = Cash Inflow * Present value of discounting factor(rate%,time period)

=900,000/1.08+900,000/1.08^2+900,000/1.08^3+900,000/1.08^4+900,000/1.08^5+900,000/1.08^6+900,000/1.08^7+900,000/1.08^8+900,000/1.08^9+900,000/1.08^10+900,000/1.08^11+900,000/1.08^12

=6782470.22

NPV=Present value of inflows-Present value of outflows

=6782470.22-6,500,000

=$282470.22

You might be interested in
Most plants want to have their supplies delivered just before they are needed to be used in production
vovangra [49]

Answer:

  True

Explanation:

The modern notion of "just in time" material delivery supports reduction of inventory and its associated costs. Plants that have sufficiently steady raw material usage will prefer supplies delivered "just in time."

Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.

It is true that most plants <em>want</em> to have supplies delivered just in time, but circumstances may make needs differ from wants.

4 0
3 years ago
Read 2 more answers
Which of the following statements are TRUE about credit scores?
Westkost [7]
Answer is a , credit scores reflect how likely individuals are to repay Thier debts.. you buy a house , and say they need a credit check. it's to be sure that you're reliable to pay the bills or rent.
7 0
3 years ago
Should a business email contain a salutation?
harkovskaia [24]

Answer:

A business email is meant in a professional way. It can be sought out as multiple different approaches, one of them, in this case, can include a friendly and welcoming business approach, including a salutation. All in all, it is up to the writer, there is no fully correct answer. Hope this helps :)

4 0
2 years ago
Bess wrote four checks last month, and these were the only transactions for her checking account. According to her check registe
Rzqust [24]
It looks tricky but its actually simple. Bank statement shows balance is $1054.13 while Bess check register shows $869.96. For us to know the amount of the check that was not approved is to get the difference of the bank statement and Bess check register. $1054.13 minus 869.96 is $184.17. Therefore, the answer is letter B.
5 0
4 years ago
True true or false increasing RAM, a computer's CPU can process more quickly
Airida [17]
This would be a true statement

5 0
3 years ago
Other questions:
  • In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period exp
    12·1 answer
  • Suppose the following selected condensed data are taken from a recent balance sheet of Bob Evans Farms (in millions of dollars).
    6·1 answer
  • Auto Transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the
    14·1 answer
  • What is the numerical range for credit scores?
    13·2 answers
  • Peer group analysis can be performed byA) management choosing a set of firms that are similar in size or sales, or who compete i
    8·1 answer
  • Online and offline marketing content is meant to drive action, which requires a focus on buyers problems. Effective brand journa
    12·1 answer
  • Orange​ juice, a raisin​ bagel, and a cup of coffee from​ Kelly's Koffee Kart cost a total of ​$2.40. Kelly posts a notice annou
    12·1 answer
  • All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
    11·1 answer
  • What is the critical issues confronting WCC North America and what changes, if any, should be initiated to address the critical
    11·1 answer
  • Create a simple sketch showing what Hawkins and Crusoe could produce if the two men lived independently on different sides of th
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!