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3 years ago

Mega Dynamics is considering a project that has the following cash flows:

Business

1 answer:

NeTakaya3 years ago

8 0

Answer:

The NPV of the project is $765.91 and option A is the correct answer.

Explanation:

To calculate the initial outlay or cost of the project, we will use the payback period of the project. The payback period is the time taken by the project's cash flows to cover up the initial cost.

A payback period of 2.5 years means that the initial cost was,

Initial cost = 2000 + 3000 + 3000 * 0.5

Initial cost = $6500

To calculate the NPV of the project, we use the following formula,

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost

Where,

CF1, CF2 , ... represents the cash flow in year 1, cash flow in year 2 and so on.
r is the cost of capital

NPV = 2000 / (1+0.12) + 3000 / (1+0.12)^2 + 3000 / (1+0.12)^3 +

1500 / (1+0.12)^4 - 6500

NPV = $765.9137794 rounded off to $765.91

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As the attrition loss in a process increases, what happens to the yield?

sp2606 [1]

Answer:

The yield decreases

Explanation:

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3 years ago

What are examples of criteria used in conditional formatting? Check all that apply. less than equal to added to divided by great

natima [27]

Answer:

Less than

Equal to

Greater than

Explanation:

Considering the listed options, the criteria used in conditional formatting are Less than, Equal to and Greater than

To make use of conditional formatting, follow the highlighted steps

1. Highlight cells that you want to format

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3 years ago

You will receive $5,000 a year in real terms for the next 5 years. Each payment will be received at the end of the period with t

photoshop1234 [79]

Answer:

$20,229.5

Explanation:

Given:

Amount to be received = $5,000

Time period, n = 5 years

nominal discount rate = 10.725%

inflation rate = 3 percent

Now,

Using the Fischer's relation, we have

1 + Nominal rate = ( 1 + Real rate ) × ( 1 + Inflation )

on substituting the values, we get

( 1 + 10.725% ) = ( 1 + Real rate ) × ( 1 + 3% )

1.10725 = ( 1 + Real rate ) × 1.03

( 1 + Real rate ) = 1.075

Real rate = 1.075 - 1 = 0.075 or 7.5%

Thus,

Present Value of an ordinary annuity that makes $5000 every year payment for 5 years will be calculates as:

Present value = Monthly payment × $[\frac{(1-(1+r^{-n})}{r}]$

Present value = $5000\times[\frac{1 - (1 + 0.075)^{-5}}{0.075}]$

Present value = 5000 × 4.0459

Present value = $20,229.5

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3 years ago

What types of crime you experience most frequently?

Ghella [55]

Answer:

well if you live in a safe country

Explanation:

u wont experience any crime

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3 years ago

Read 2 more answers

Dyson cordless vacuum cleaners offer heavy-duty performance for cleaning all floor types. The Dyson is also very lightweight and

pav-90 [236]

Because the Dyson provides the user with really clean floors and carpets, the Dyson is an example of utilitarian value

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This refers to the value that is received by a customer based on task-related behavior where there is a functional product aspect.

Hence, we can see that based on the fact that Dyson cordless vacuum cleaners offer a service for a price of $599 and gives really clean floors, they are an example of utilitarian value.

Read more about utilitarian value here:

brainly.com/question/14570851

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2 years ago