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shutvik [7]
4 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]4 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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Indian GDP in 2010 was 78.9 trillion rupees, whileU.S. GDP was $14.5 trillion. The exchange rate in 2010 was 45.7 rupees per dol
olga2289 [7]

Answer:

Explanation:

a )

Ratio of GDP on the basis of exchange rate :

GDP of india / GDP of united states

= 78.9 x 10¹⁸ x 1 / 14.5 x 10¹⁸ x 45.7

=  0.12

b )

Ratio of GDP on the basis of commonprices :

GDP of india / GDP of united states

= (78.9 x 10¹⁸  / 14.5 x 10¹⁸ ) x ratio of price level

=  (78.9 / 14.5) x .368

=  2

c ) These two numbers are different because the exchange  rate of currency

is controlled by price level in two countries but exchange rate is also influenced by many other factors including price level . So ratio of price level and exchange rate are different. Exchange rate is also influenced by speculative demand , foreign exchange reserve etc.

6 0
3 years ago
is starting her own accounting firm and hires , a freelance web designer who specializes in responsive design to build her busin
sasho [114]

Answer:

No, contracts for personal services are not assignable.

Explanation:

According to a different source, these are the options that come with this question:

Yes, as long as the assignment does not increases the burden on Max.

Yes, Claire can assign her obligations under the contract to anyone who accepts.

No, contracts for personal services are not assignable.

No, the assignment is not valid since Max did not give any consideration.

This is most likely not a good strategy for this woman. The fact that this woman has been hired as a freelance web designer means thta the woman is beig paid for her professional expertise. No one else can perform the job in the way that she can perform it. Therefore, she cannot assign this duty to another person.

8 0
3 years ago
When considering an external environment with a high level of resources and low degree of uncertainty, managers are most likely
MakcuM [25]

Answer:

Managers are most likely to use detailed rules, SOPs( standard operating procedures), and restrictive norms to govern employees activities.

4 0
4 years ago
Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $
sveta [45]

Answer:

Total FV= $1,220,441.33

Explanation:

<u>First, we need to calculate the value of the $200 for 20 years. To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

A= 200

n= 20*12= 240

Intertest rate= 0.07/12= 0.005833

FV= {200*[(1.005833^240) - 1]} / 0.005833

FV= $104,180.27

<u>Now, the value of the $300 for 30 years. At the same time, the future amount of the first investment. Each one with its separate formula.  </u>

$300 monthly investment:

n= 300*12= 360

FV= {300*[(1.005833^360) - 1]} / 0.005833

FV= $365,962.41

$104,180.27 investment:

FV= PV*(1+i)^n

FV= 104,180.27*(1.005833^360)

FV= $854,478,92

<u>Finally, the total FV:</u>

Total FV= 854,478.92 + 365,962.41

Total FV= $1,220,441.33

6 0
3 years ago
An information system that provides relevant data to help businesspeople choose the appropriate course of action is called a(n _
castortr0y [4]
The answer is:  "Decision support system (DSS)" .
________________________________________________
8 0
3 years ago
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