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Strike441 [17]
3 years ago
10

Park Co. is considering an investment that requires immediate payment of $34,000 and provides expected cash inflows of $11,800 a

nnually for four years. If Park Co. requires a 10% return on its investments. 1-a What is the net present value of this investment?(FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Business
1 answer:
Galina-37 [17]3 years ago
3 0

Answer:

NPV =  3,404.41

Explanation:

We will calculate the net present value doing:

<em>NPV =  present value of the cash flow   - investment</em>

Investment = 34,000

Now we need to discount each cash flow at the given rate.

<u>For that,</u> we will treat the cash flow as an annuity of 11,800 for 4 year at 10% rate:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 11800

time 4

rate 0.1

11800 \times \frac{1-(1+0.1)^{-4} }{0.1} = PV\\

PV $37,404.41

<em>NPV =  present value of the cash flow   - investment</em>

<em>NPV =       37,404.41 - 34,000 = 3,404.41</em>

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Natalka [10]

Answer:

$268,500

Explanation:

When you use the indirect method to calculate net cash flows, you start with net income and then adjust it by:

  • adding the amount by which accounts receivable decreased = ($17,000 - $10,500) = $6,500
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net cash flow from operating activities = $270,000 + $6,500 - $8,000 = $268,500

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just paid an annual dividend of $3.00 per share last year. Management just announced that future dividends will increase by 2 pe
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Explanation:

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= 3 * ( 1 + 2%)⁵

= 3 * 1.1040808032‬

= ‭3.3122424096‬

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7 0
3 years ago
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kolezko [41]

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The correct answer is Public Company Accounting Oversight Board.

Explanation:

The Sarbanes Oxley Law was enacted in the United States with the purpose of monitoring companies that are listed on the stock exchange, preventing the valuation of their shares from being altered doubtfully, while their value is lower. Its purpose is to avoid fraud and bankruptcy risk, protecting the investor.

This law, beyond the local level, also involves all companies listed on the NYSE (New York Stock Exchange), as well as its subsidiaries.

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vekshin1

Answer: 13.1%

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Expected Return = Risk Free rate + beta(expected return - risk free rate)

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<h3>How does FAU use their slogan?</h3>

“ATTENTION FAU” is only utilised in messaging if an incident has the potential to suspend normal operations or affect life safety and/or destruction of University resources.

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learn more about FAU: brainly.com/question/16054173

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