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
polet [3.4K]
3 years ago
14

A project is expected to produce cash flows of $12,800, $15,900, and $18,000 over the next 3 years, respectively. After 3 years,

the project will be discontinued. What is this project worth today at a discount rate of 12.5 percent?
Select one:

A. $36,808.17
B. $35,758.00
C. $34,435.74
D. $35,201.76
E. $36,582.72
Business
1 answer:
KATRIN_1 [288]3 years ago
7 0

Answer:

The correct answer is Option (E).

Explanation:

According to the scenario, the given data are as follows:

FV of 1st year = $12,800

FV of 2nd year = $15,900

FV of 3rd year = $18,000

Discount rate = 12.5%

So, we can calculate the present value by using following formula:

PV = FV × (1 ÷ (1+r)^t

So, by putting the value we get

PV =$12,800 × 1 ÷ (1 + 0.125)^1 + $15,900 × 1 ÷ (1 + 0.125)^2 + $18,000 × 1 ÷ (1 + 0.125)^3

PV =$12,800 × 1 ÷ (1.125)^1 + $15,900 × 1 ÷ (1.125)^2 + $18,000 × 1 ÷ (1.125)^3

PV = $36,582.72

You might be interested in
Broadbanding eliminates layers in pay grades requiring organizations to find other ways to reward employees. Group startsTrue or
AlekseyPX

Broad banding eliminates layers in pay grades requiring organizations to find other ways to reward employees. False

  • A technique called "broad banding" replaces a large number of small wage ranges with a smaller number of larger compensation ranges when evaluating and building a job grading structure. Establishing what is necessary to pay for a certain position with help from broad banding.
  • Payroll departments employ broadband for human resource management. When deciding how much to pay specific roles and the incumbents in those positions, a job grading structure known as "broadcasting" lies somewhere between using spot salaries and several job grades. Broad banding does provide some broad job classifications to the business that uses it, but it does not have as many discrete job grades as do traditional compensation systems.

Thus this is the answer.

To learn more about HR, refer:brainly.com/question/24623157

#SPJ4

6 0
1 year ago
You are a bank loan officer. Carter has come into your office and applied for a loan for a car. You ran his credit report, and h
aliya0001 [1]

Answer: you would say that carter does not have a good finance in order to have the bank to give him a lown in order to get a lown you have to have a good job and good amount of money to pay it off in the future

Explanation:

3 0
3 years ago
Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on
Salsk061 [2.6K]

Answer:

Cost of equity = 19.1 %

Explanation:

Cost of equity = required rate of return + flotation cost

The Capital assets pricing model would be used to determined  the required rate of return

<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  </em>

Using the CAPM , the required rate of return is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) - required return

β- Beta

Rm- Return on market

Rf- Risk-free rate

DATA

E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%

E(r) = 3% + 1.1× (14% - 3%) = 15.1 %

Cost of equity = required rate of return + flotation cost

                        = 15.1 % + 4% = 19.1 %

Cost of equity = 19.1 %

7 0
3 years ago
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Alisiya [41]

Answer:

C. $17,500

Explanation:

1,300 / 200 = 6.5

we are going to hire between 6 and 7 welder as we are given the requirement <u>"for every 200 hours or fewer in a month"</u> we should round above and not below: 7 welder. Besides, we cannot hire "half" or "quarter" of an employee therefore we have to move between integer solutions.

7 0
3 years ago
HELP PLEASE, I WILL GIVE BRAINLIEST!!
anzhelika [568]

Answer:

1. Problem-solving skills.

2. leadership skills.

3. Attention to detail.

Hope this helps you....!

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • Rodgers Inc. is imports paper from Shanghai China. In a typical transaction Rodgers receives a delivery of paper from the Chines
    10·1 answer
  • Bobby is speaking to his friend and says, "this musical is going to cost me $60 when I buy the ticket." His friend corrects him
    5·1 answer
  • John would like to move from the suburbs into the city, but the rent in the city is very high . John ha found an apartment he re
    14·1 answer
  • When Alfred Nobel​ died, he left the majority of his estate to fund five​ prizes, each to be awarded annually in perpetuity star
    6·1 answer
  • Matt plans to start his own business once he graduates from college. He plans to save $1,400 every six months for the next five
    8·1 answer
  • Ways to improve upward communication flow include all but which of the following: a. Anonymous feedback to management b. Ombudsm
    10·1 answer
  • A table of notes receivable for 2018 follows:
    15·1 answer
  • What does a bond's rating refer to?
    14·1 answer
  • PLEASE QUICK (will give Brainliest)
    10·2 answers
  • Should Monics and Ami use a loan or their personal funds to finance their business startup? What other alternatives might they c
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!