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
ra1l [238]
3 years ago
7

You are making a $120,000 investment and feel that a 15% rate of return is reasonable, given the nature of the risks involved. Y

ou expect to receive $48,000 in the first year, $54,000 in the second year, and $76,000 in the third year. You expect to pay out $12,000 as a disposal cost in the fourth year. What is the net present value of this investment given your expectations
Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer:

$5,681.08

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator

Cash flow in year 0 = $-120,000 

Cash flow in year 1 = $48,000

Cash flow in year 2 = $54,000

Cash flow in year 3 = $76,000

Cash flow in year 4 = $-12,000

I = 15%

NPV = $5,681.08

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

You might be interested in
Stock A has an expected return of 15 percent and the standard deviation of its returns is 20 percent. Stock B has an expected re
kiruha [24]

Answer:

Stock A will be preferable for the risk averse Investors.

Explanation:

The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.

(Special comments:

It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)

4 0
3 years ago
Tony has realized that two activities (A and B) in his project cannot be done at the same time because not enough resources are
iVinArrow [24]

Answer:

He should schedule the activity with the least slack, that means the activity B.

So, B. He should scheduel activity B first.

5 0
3 years ago
________ measures the percentage of profit earned on each sales dollar before interest and taxes but after all costs and expense
julsineya [31]
Hello!

The correct answer for the blank is: Operating profit margin.

I really hope you found this helpful! :)
7 0
3 years ago
An appraiser valued a subsidiary of Signal Co. at between $230 million and $260 million. One month later, Burmah Oil offered to
Goshia [24]

Answer:

No, because they violated the duty of care

Explanation:

Business judgement rule is a provision that protects the management of a business from frivolous legal action concerning the way it does business.

The court assumes that the management acts in good faith in its fiduciary role, standard of loyalty, prudence, and care.

Duty of care is breached when the management do not make reasonable effort to prevent injury or loss.

In this instance Signal board is not protected by the business judgement rule because they violated duty of care.

Although the offer by Burmah oil is above the valuation a month ago, the board did not bother to do a present valuation or find out if other companies want to buy the subsidiary at a higher price.

8 0
3 years ago
Why do invoices generally include an invoice number?
IRINA_888 [86]
Your answer is D :)
Hope this Helps!

5 0
3 years ago
Read 2 more answers
Other questions:
  • Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion costs. Materials are added at the beginning of the
    5·1 answer
  • In 2011, harris optical lost $450,000 in missing merchandise. as a result, it developed a plan in which employees in 2012 would
    14·1 answer
  • Which of the following fees would likely by the highest
    6·1 answer
  • The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consu
    12·1 answer
  • Tater and Pepper Corp. reported sales for 2018 of $43 million. Tater and Pepper listed $7.6 million of inventory on its balance
    10·1 answer
  • When society produces the combination of goods and services on the ppf that it values the most highly, society has?
    12·1 answer
  • A government may ________ its currency to correct its balance-of-payment conditions
    11·2 answers
  • If you are falling behind on your student loan payments, which of the following steps should you take to avoid default?
    5·2 answers
  • 3. What does the segment suggest to guard against employee misuse of workplace technology? *
    14·1 answer
  • Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has outstanding 20,000 shares of $50 par value,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!