Answer:
c. NPV will decrease by $1,621.23.
Explanation:
Missing word <em>"Hint: what happens to cash flow when net working capital increases and decreases? a. NPV will not be affected because the $25,000 will all be recouped b. NPV will decrease by $25,000. c. NPV will decrease by $1,621.23. d. NPV will increase by $1,864.41. 19"</em>
Present Value of Net Working Capital investment in Year 5 = $25000 / (1+15%)^5
= -$25,000 / (1+15%)^5
= -$25,000 / 2.01135719
= -$12,429.418
= -$12,429.42
Present Value of Net Working Capital Recovered in Year 6 = $25000 / (1+15%)^6
= $25,000 / (1+15%)^6
= $25,000 / 2.31306077
= $10,808.1899
= $10,808.19
Effect on the project's net present value = Present Value of Net Working Capital investment in Year 5 + Present Value of Net Working Capital Recovered in Year 6
= -$12,429.42 + $10,808.19
= -$1,621.23
Therefore, NPV will decrease by $1,621.23.
Answer:
504.15 million.
Please find the detailed answer as follows:
Explanation:
Consider the following calculations. The key to solve the exercise is to apply the formula of compound interest.
Present Value = 190/(1+.18)^1 + (190 -2)/(1+.18)^2 + (190 - 2 - 2)/(1+.18)^3 + + (190 - 2 - 2 - 2)/(1+.18)^4 = 504.15 million
Answer:
Most credit cards only require you to make a minimum payment each month, which is typically a fixed amount, like $20 to $25 or something thats 1 to 3 percent of your balance so the less you pay now, the more you'll pay later
If a customer is reluctant to try a new product because he would have to change his normal every day behaviors, the company is most likely facing a usage barrier.
