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ra1l [238]
3 years ago
10

A project that provides annual cash flows of $16,800 for nine years costs $74,000 today. what is the npv for the project if the

required return is 8 percent?
Business
1 answer:
ExtremeBDS [4]3 years ago
6 0

Answer:

$30,947.92

Explanation:

The computation of the net present value is shown below:

= Present value of all yearly cash inflows after applying discount factor +  - initial investment  

where,  

The Initial investment is $74,000

All yearly cash flows would be

= Annual cost savings × PVIFA for 9 years at 8%  

= $16,800 × 6.2469

= $104,947.92

Refer to the PVIFA table

So, the net present value is

= $104,947.92 - $74,000

= $30,947.92

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You want to invest $20,000 today to accumulate $32,000 for graduate school. If you can invest at an interest rate of 10% compoun
uranmaximum [27]

Answer:

N = 5 years

Explanation:

At first we have to calculate the number of periods to determine at which part of the table we should look at.

Given,

PV = $20,000

FV = $32,000

Interest rate, i = 0.10 (10%)

Number of periods, n = ?

We know, Future value, FV = PV × (1+i)^{n}

or, $32,000 = $20,000 × (1 + 0.10)^{n}

or, 1.6 = 1.10^{n}

As the factor is 1.6, we will look at the following image which is the FV factor table to find the number of periods.

We can find it in a different way too.

log 1.6 = n log 1.10

or, n = \frac{log 1.6}{log 1.10}

or, n = 4.93 years

Therefore, n = 5 years

8 0
3 years ago
Half of all potential customers would pay $10 for your product but half would only pay $8 but you cannot tell them apart. Your m
IgorLugansk [536]

Answer:

The correct answer is b) $4.

Explanation:

This is simple problem, it requires us to to tell expected profit. We know that profit is equal to revenue minus expense. So in question revenue is given as $ 8 and cost is $ 4. So the profit would be

Profit = Revenue -Cost = 8 - 4 = $ 4

5 0
3 years ago
A. What is a benefit of international trade to households?
devlian [24]

Answer:

a. Increased wealth due to lower prices and greater product diversity b. Ability to use productive resources found only in other countries.

Explanation:

A: Benefits of International trade for households, is an increase in wealth as a consequence of the drop in prices of goods that are imported (because these products are produced efficiently abroad), and a potential drop in prices of local goods because productive factors could potentially be more efficiently allocated increasing the productivitiy of such factors. Households also benefit because a higher diversity of products could expand their utility curve by richer consumption alternatives. B: Benefits of international trade for firms is an expansion of the disposable resources available to produce local goods, which could increase the productivity per productive factor by relatively lower prices of resources and higher quantities.

6 0
3 years ago
One major benefit of using the Bank Feeds feature in QuickBooks Online is that as you _________________ or __________________ tr
Flura [38]

<u>Answer: </u>One major benefit of using the Bank Feeds feature in QuickBooks Online is that as you Exclude or Add transactions in QuickBooks Online from the downloaded transactions from the bank, they are marked Reconciled. This makes the end-of-period bank reconciliation more efficient.

<u>Explanation:</u>

Bank feeds is the online transaction platform provided for the customers to connect with the bank and download the transactions and access other online services. These transactions saves time for the users.

Bank reconciliation is checking the balances of the bank statement and the cash account. The difference in both the books are checked and reconciliation statement is passed to match both the books. Manual reconciliation takes time whereas it is easier to do it through quickbooks in online.

7 0
3 years ago
A rightward shift in the short-run aggregate supply curve will occur when:.
posledela

A rightward shift in the aggregate supply curve will occur when: there is a decrease in price input.

<h3>What is a supply curve?</h3>

A supply curve is a graphical representation of how the market would behave or move in there is a change in supply. It is a representation of the relationship between the quantity supplied for a given period of time and the prices of goods and services.

A rightward shift in the short run aggregate supply curve will then occur anytime there is a decrease in the price input.

Learn more about Supply Curve here:

brainly.com/question/26430220

4 0
3 years ago
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