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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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Which are the first steps you should consider when constructing an online business strategy?

Create goals and identify a USP

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2 years ago

A news article details the destruction of a recent earthquake. Which of the following are readers of the article likely to do as

elena55 [62]

A news article details the destruction of a recent earthquake. Readers of the article likely to do as result are Overestimate their risk of earthquakes. Thus option A is correct.

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When a news article shows destruction related to earthquakes people will most likely analyze their risk from earthquakes and evaluate whether they are safe from them or not.

Therefore, option A is appropriate.

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2 years ago

The flood account is set up as a chiasm. this means it is a _______________ story/account.

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"And the dance by night," reads the second half of the line.

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2 years ago

Charles was the last person on his block to purchase a color television set, and that was in the 1980s. He just couldn't see the

dezoksy [38]

Answer:

Charles is classified in the adopter category called "Latecomers"

Explanation:

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Latecomers represent 16% of consumers, are insecure to adopt new things, do not like to try new things and do not follow fads. Being traditionalists, they always perform the same way and only adopt innovation when there is no other alternative. Like Charles, who only bought the color TV because his old tv stopped working.

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4 years ago

Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Bl

aleksandr82 [10.1K]

Answer:

Merger premium per share is equal to $2

Explanation:

Step 1. Given information.

1500 shares outstanding
market price of 22
Blackstone has 2.500 shares
Outstanding price 38
Blackstone acquire Rudy's for $36.000

Step 2. Formulas needed to solve the exercise.

Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price

Step 3. Calculation.

Merger premium per share = ($36,000/1,500) - $22 = $2

Step 4. Solution.

Merger premium per share is equal to $2

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3 years ago