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IRISSAK [1]
2 years ago
9

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175, 846, net annual cash flow

s $37, 300, and present value factor of cash inflows for 10 years 5.02 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made?
Business
1 answer:
alexira [117]2 years ago
6 0

Answer:

NPV = $11400

As the NPV from the project is positive, the investment should be made.

Explanation:

The NPV or net present value is an important metric that is used for project and investment evaluation. The NPV is the present value of the series of cash flows provided by the project less the initial cost incurred to undertake the project. NPV can be calculated as follows,

NPV = (Annual Cash Flow * Present value factor) - Initial cost

NPV = (37300 * 5.02)  -  175846

NPV = $11400

As the NPV from the project is positive, the investment should be made.

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Answer:

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Explanation:

The computation of the amount of the fee is shown below:

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Since the question has asked the fee amount so we consider the fee charges percentage, not the capital investment Lifecycle fund. Thus, we ignore the Capital Investments Lifecycle Fund as it is not relevant.

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8 0
3 years ago
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Hope this helped!


3 0
2 years ago
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Choose the statement that is incorrect.
MAVERICK [17]

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B. In the long​ run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate.

Explanation:

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But in the case of the long run, if there is a change in the nominal exchange rate so the real exchange rate would remain the same

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