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antiseptic1488 [7]
3 years ago
15

A firm, with an 18% cost of capital, is considering thefollowing projects (on January 1, 2011):Jan. 1, 2011, Cash outflow (000's

omitted)Dec. 31, 2015, Cash inflow (000's omitted)Project internal rate of returnProject A $3,500 $7,400 15%Project B 4,000 9,950 ?Present Value of $1 Due at End of "N" PeriodsN 12% 14% 15% 16% 18% 20% 22%4 .6355 .5921 .5718 .5523 .5158 .4823 .42305 .5674 .5194 .4972 .4761 .4371 .4019 .34116 .5066 .4556 .4323 .4104 .3704 .3349 .2751Using the net present value method, Project A's netpresent value isa. $316,920b. $0c. $(265,460)d. $(316,920)
Business
1 answer:
Aleks [24]3 years ago
4 0

Answer:

<em>c. $(265,460)</em>

Explanation:

The net present value of Project A shall be determined as needed.

The cash inflow of 31 December 2015 is five years from the current cash outflow and the net present value method uses the 18 per cent capital cost of the company.

The current value factor for 18 percent for 5 years is.4371, and $7.400,000 times.4371 is equivalent to $3.234.540, which is $265.460 lower than the current cash outflow of $3.5 million.

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The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods
Setler79 [48]

Answer:

A) true

Explanation:

Compound interest can be regarded as

adding of interest gotten to the principal sum of a deposit or the principal sum of a loan. It's one that is gotten after reinvesting of ones interest instead of paying it out, as a result of this the interest that comes in

next period will be earned on the principal sum along with those interests accumulated before. It should be noted the process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods.

6 0
3 years ago
Tom sold his home for $140,000 paying a 7% real estate commission. He bought the home for $45,000, paid $2,000 in closing costs,
Igoryamba

Answer:

$48,200

Explanation:

Given:

Selling price of home = $140,000

Acquisition price = $45,000

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Cost of fireplace and family room = $35,000

Real estate commission = 0.07 × 140,000 = $9,800

Total adjusted basis  = 45,000 + 2,000 + 35,000 + 9,800

                                   = $91,800

Taxable gain = Selling price - adjusted basis

                      = 140,000 - 91,800

                      = $48,200

7 0
4 years ago
You work for a local convenience store. At the end of 2nd shift, 11PM, any foods in the heated kiosk are to be discarded. Money
Yuliya22 [10]
Well this is a good question I think its not
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3 years ago
The power to grant or withhold budget requests of agencies may be one of ________ most potent weapon in controlling the bureaucr
skad [1K]

Answer:

_Congress's_

Explanation:

The power to grant or withhold budget requests of agencies may be one of __Congress's______ most potent weapon in controlling the bureaucracy.

It the Congress who is responsible for the the budget allocation and distribution for the agencies according to The american constitution. This how they control the bureaucracy.  

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