Answer:
NPV = $35,868.06
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV for Project Nuts
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-600,000
Cash flow each year from year 1 to 6 = 146,000
I = 10%
NPV = $35,868.06
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Based on the information given the amount of interest that John pay in all is his $7,200,000.
<h3>Interest:</h3>
Using this formula
Interest=Amount borrowed×Number of years×Interest rate
Where:
Amount borrowed=$6,000,000
Number of years=15 years
Interest rate=8%
Let plug in the formula
Interest=$6,000,000×15×8%
Interest=$7,200,000
Inconclusion the amount of interest that John pay in all is his $7,200,000.
Learn more about interest here:brainly.com/question/16134508
Answer:
b. flexible accumulation
Explanation:
Flexible accumulation
The increasing flexible strategies which is adapted by a corporations to accumulate the profits in the age of globalization , it is enabled with the transportation technologies and innovative communications .
From the data of the question , the example is of flexible accumulation .
Answer:
12.5%
Explanation:
Expected return = Risk free rate + (Beta of factor 1 * Risk premium of factor 1) + (Beta of factor 2 * Risk premium of factor 2)
14 = Risk free rate + (1.3*8) + (0.7*3)
Risk free rate = 12.5%
