Answer:
NPV = $1.49 million
Explanation:
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
<em>NPV of an investment: </em>
NPV = PV of Cash inflows - PV of cash outflow
But we will need to work out the discount rate to be used for discounting the cash flows. Hence, we need to determine the cost of capital as follows:
Step 1: After-tax cost of debt
After tax cost of debt = pre-tax cost of debt × (1-tax rate rate)
= 9%× (1--0.3)=6.3%
Step 2 : Weighted Average cost of capital (WACC)
WACC=( 0.25×6.3%) + (0.75× 13%) =11.325
%
Step 3:Net Present Value (NPV)
PV of cash inflow= (1- (1.11325^-5)/0.11325)× 13.5 = 49.49 million
Initial cost = $48 million
NPV = 49.49 million - $48 million =$1.49 million
NPV = $1.49 million
Present Value involves discounting, and future value involves compounding.
The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.
To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now.
Answer:
He was a Democrat and he was also a major leader in the progressive health reform
Answer:
The correct answer is letter "B": human resource inventory.
Explanation:
A human resource inventory is the collection of information about employees on their skills, abilities, and qualifications that contribute to the productivity of the organization. This analysis allows the firm to know what human capital it counts on so it can exploit it and what profiles are missing to boost efficiency in the corporation. Investing in the institution's human resources can create a competitive advantage difficult to replicate by competitors.
The answer to this is “yes”. <span>This agreement or contract is called as the non compete clause and is usually
intended for people in job positions that may bring with them trade secrets or
start up a rival company which might steal business or technology. These
companies will make the employees sign agreements at the start of their job stating
that they will not work for a competing company for a number of years after
their employment is terminated. </span>
