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xz_007 [3.2K]
3 years ago
14

Net present value ____________________. Group of answer choices compares project cost to the present value of the project benefi

ts is equal to zero when the discount rate used is less than the IRR is equal to the initial investment in a project is simplified by the fact that future cash flows are easy to estimate requires the firm set an arbitrary cutoff point for determining whether an investment is a good one or not
Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

compares project cost to the present value of the project benefits

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

A good investment is an investment that has a positive NPV. When comparing two or more projects, the project with the higher NPV should be chosen.

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Leo purchased a stock for $47.10 a share, received a $1.74 dividend per share and sold the shares for $50.10 a share. During the
kondaur [170]

Answer:

6.96%

Explanation:

Find nominal expected return;

Nominal expected return =  [(Dividend + New Price -Old Price) /Old price]*100

= [ (1.74 +50.10 - 47.10) / 47.10 ]*100

= (4.74 / 47.10)* 100

= 0.100637 *100

=10.0637%

Real rate of return = Nominal return - inflation rate

Inflation rate = 3.1%

Real rate of return = 10.0637% - 3.1%

= 6.96%

4 0
3 years ago
JBS Inc. recently reported net income of $4,750 and depreciation of $885. How much was its net cash provided (used) by operation
stepan [7]

Answer:

net cash provided is $5,635

Explanation:

                                                  Amount ($)

Net Income                                 4,750

Depreciation                                  885

Change in inventory                     (200)

Change in accounts payable    <u>    200 </u>  

Net cash flows from Operation<u>   5,635</u>

The depreciation is a none cash item that was initially deducted to get the net income, hence it is added back in the cash flows statement.

An increase in inventory represents an outflow of cash hence the negative value. The increase in trade payable is an increase in a liability representing an inflow of cash hence it is positive.      

7 0
2 years ago
Harry has $4000 invested in two savings accounts. one account earns 6% interest per year, and the other pays 7% per year. if his
Gekata [30.6K]
0.07x+0.06 (4000-x)=264
Solve for x
X=2400 invested at 7%
8 0
3 years ago
Problem 1 (15 Points Total): a) (5 points) For an interest rate of 1% per quarter, determine the nominal interest rate per i) se
IgorLugansk [536]

Answer:

Nominal interest rate semi annual  =2%

Nominal interest rate yearly = 4%

Nominal interest rate per 2 year = 8%

4 quarters in 1 year

Explanation:

given data

interest rate = 1%

deposit   = $100 per week

interest =  6% per year

solution

when quarterly interest rate is 1%

so that here Nominal interest rate per semi annual period will be

Nominal interest rate semi annual  =  1% × 2

Nominal interest rate semi annual  =2%

and

Nominal interest rate per year will be

Nominal interest rate yearly =  1% × 4

Nominal interest rate yearly = 4%

and

Nominal interest rate per 2 year will be

Nominal interest rate per 2 year = 1% × 8

Nominal interest rate per 2 year = 8%

and

when Interest rate compounded quarterly is 6% per year

so here Interest period 1 year as interest will be paid annually

and Compounding period is 1 quarter is compounding quarterly

and here

Interest will be compounded 4 times in 1 interest period

so there is 4 quarters in 1 year

7 0
3 years ago
Use the Circular Flow Model to explain how the economy of Bangladesh functions.
Reika [66]

Answer:

What Is the Circular Flow Model?

The circular flow model demonstrates how money moves through society. Money flows from producers to workers as wages and flows back to producers as payment for products. In short, an economy is an endless circular flow of money.

That is the basic form of the model, but actual money flows are more complicated. Economists have added in more factors to better depict complex modern economies. These factors are the components of a nation's gross domestic product (GDP) or national income. For that reason, the model is also referred to as the circular flow of income model.

Explanation:

3 0
3 years ago
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