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Genrish500 [490]
3 years ago
5

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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Answer:

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Explanation:

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3 years ago
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I think that answer is 1.5 
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Terry took out a mortgage loan for $100,000 at an interest rate of 11.5% for 30 years. if terry had not had a bankruptcy on her
Mrrafil [7]

Because Terry had a bankruptcy on her credit report, the additional amount of interest that Terry is paying over the life of the loan is <u>$167,839.720</u>.

<h3>What is interest?</h3>

Interest is the finance charge for a loan or mortgage.

It is calculated on the principal amount based on the agreed rate and maturity period of the loan.

We can compute the interest using an online finance calculator as below.

<h3>Data and Calculations:</h3>

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Total of 360 Mortgage Payaments without bankruptcy = $188,665.20 ($524.07 x 30 x 12)

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Thus, the additional amount of interest that Terry is paying over the life of the loan is $167,839.720.

Learn more about interest calculations at brainly.com/question/25545513

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Answer:

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