Answer:
d. 8%
Explanation:
The computation of the discount rate is shown below:
Initial investment = Present value of cash inflows
where,
Initial investment is $7,139,000
And, the present value of cash inflows
= Annual cash inflows × discount rate
We assume the discount rate be X
$7,139,000 = $1,000,000 × X
So,
X = 7139000 ÷ 1000000 = 7.139
= 8%
We simply applied the above formula in order to find out the discount rate
Answer and Explanation:
The computation of the shareholder equity for each case is shown below:
a. For case one
As we know that
Total assets = Total liabilities + stockholder equity
$9,900 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,900
= $800
b. For case two
Total assets = Total liabilities + stockholder equity
$9,990 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,990
= $710
Answer:
acceptable.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.
A project with a zero net present value indicates that it is acceptable.
This ultimately implies that, investors and project managers are advised to only invest in projects that are having a positive net present value that is greater than or equal to zero.
