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shutvik [7]
3 years ago
5

A new investment project currently under consideration has a negative net present value of $85,000. The project has a life of 10

years, and the minimum required rate of return is 8%. The present value factor for an annuity at 8% for 10 periods is 6.71. What is the amount of annual additional cash flow required from the project for it to be acceptable? $12,668 $6,800 $8,500 $10,000
Business
1 answer:
KIM [24]3 years ago
3 0

Answer:

correct option is $12,668

Explanation:

given data

net present value = $85,000

time = 10 year

rate of return = 8%

solution

we apply here formula for  Present Value of annual additional cash flow that is

Present Value of annual additional cash flow = Annual cash flow × present value factor for an annuity      ............................1

put here value

$85,000 = Annual cash flow × 6.71

Annual cash flow = $12,668

so here correct option is $12,668

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The situation in which a person places greater value on a good as fewer and fewer people possess it is called the
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The correct answer is: Snob effect.

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When a company exchanges 200 shares of stock worth $20 each for 100 shares worth $40 each, they are using?
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3 years ago
Lindsey holt owns stock in the galloway gems company. she knows in advance that the dividend on this stock is a $1.50 per share.
solniwko [45]

According to the given statement Lindsey holt purchased preferred stock.

The correct option is B.

<h3>What is the preferred stock?</h3>

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To know more about preferred stock visit:

brainly.com/question/15078323

#SPJ4

I understand that the question you are looking for is:

Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share and that it is a promised or contractual and constant dividend . Given this, you know for sure that she purchased which type of stock?

A. Green chip

B. Preferred

C. Penny

D. Uncommon

E. Growth

4 0
1 year ago
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