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
steposvetlana [31]
3 years ago
9

An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3. The required rate of r

eturn is 20 percent. The net present value is closest to $92.32. $75.97. $37.27. $92.35.
Business
1 answer:
WINSTONCH [101]3 years ago
6 0

Answer:

The  correct answer is B.

Explanation:

Giving the following information:

An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3.

Rate of return= 20%

To calculate the present value, we need the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

Io= 115

Cf1= 50/ 1.20= $41.67

Cf2= 90/1.2^2= $62.5

Cf3= 150/1.2^3= $86.81

NPV= -115 + (41.67 + 62.5 + 86.81)

NPV= $75.98

You might be interested in
One bank offers a 2% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. It is likely bette
vodomira [7]

Answer:

The problem with variable rates is that they vary, i.e., they might unexpectedly increase and the increase might be pretty significant. One of the main factors leading to the Great Recession was the housing bubble and the increase in mortgage interest rates. Normally, interest rates tend to increase, they might sometimes decrease, but generally they only go up and up.

Even though the fixed interest rate might be higher, it will not change and that  guarantees that you will always pay the same amount and that you can prepare your personal budget to cover it.

5 0
3 years ago
Louise works for a tax firm that caters to individuals and small businesses. Each year when tax season rolls around, the firm is
kondor19780726 [428]

The correct answers for the following questions are:

  • Extranet
  • ED
  • Operating cost.

<h3>Which type of network will best assist the firm?</h3>

An extranet is the type of network that will best assist the firm in receiving and managing documents from clients.

Therefore, Option D is correct.

<h3>Where should Louise place the file server?</h3>

The file server should be placed in an Encryption Device to allow safety while clients are signing into for document management.

Therefore, Option B is correct.

<h3>What is an Operating cost?</h3>

This means the ongoing expenses that are incurred from the normal day-to-day of running a business.

Read more about network

brainly.com/question/24137718

#SPJ1

6 0
1 year ago
In February of each year, the Carlton Hotel holds a very popular wine tasting event. Tickets must be ordered and paid for in adv
vodka [1.7K]

The realisation principle indicates that the revenue from these ticket sales should be recognised in the period in which the Wine tasting is held.

Explanation:

It complies with Revenue Recognition Accounting Policy 9. It will be a burden for the organization, until the moment services are provided for which the money is taken.

Revenue recognition is a GAAP which defines the specific conditions under which revenue can be recognized. Revenue recognition is a generally accepted concept of accounting. In fact, when the crucial event happened, profits are remembered and the value of the profit for the company is tangible.

For Example, when a product is sold, the profit accounting is relatively straightforward, and the customer pays the products. Nevertheless, the fact that a company takes a long amount of time to manufacture a commodity will confuse accounting. Consequently, there are a number of situations in which the concept of acknowledgment of profit may be excepted.

8 0
3 years ago
Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country
shusha [124]

Answer:

they have the prime market I think? I don't see any options on here to know what direction the question is going.

8 0
3 years ago
. If the price elasticity of demand for pineapple is 0.75, a 4% increase in the price of pineapple will lead to a A. 3% decrease
ludmilkaskok [199]

Answer:

A) 3% decrease in the quantity demanded of pineapple.

Explanation:

We know that the demand curve is negative, which means that as price of a product increases, its demand will decrease.

In unitary elasticity(1) the change in demand means that the change in quantity demanded will be the same. A 0.75 elasticity will thus mean that the quantity demanded will change by a factor of 0.75 as compared to the change in price.  

Therefore when the price of pineapple increases by 4%, the quantity demanded will decrease by 4 * 0.75 = 3%

3 0
3 years ago
Read 2 more answers
Other questions:
  • 15-10 A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year l
    11·1 answer
  • Desai and Lucy divorced in 2018. Lucy has custody of their child, Andrea, and under the divorce decree Desai pays Lucy $120,000
    14·1 answer
  • 1. Discuss the three components of strategy as they relate to Theo Chocolate's new strategy. – distinctive competence, scope, an
    9·1 answer
  • Central planning is a key characteristic of which economic​ system?
    13·2 answers
  • "how would the distribution of income change if social security were privatized?"
    6·1 answer
  • When building a new mall what would the input be?
    13·1 answer
  • Which of the following is the best example of correlation not being the same as causation? A. A company redesigns a production p
    13·1 answer
  • When identifying a problem, leaders actively seek to identify its _______________, not merely the symptoms on the surface as sym
    14·1 answer
  • The excerpt most directly expresses an economic perspective that:.
    7·1 answer
  • Which form of feasibility incorporates both physical and mental integration of the design work system during job completion
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!