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Over [174]
3 years ago
7

A firm is considering an investment in a new advertising project. The project will produce a cash flow of $1,000 in one year and

it will produce a cash flow of $15,000 two years from now. The firm has a required return of 11%. You are the manager of the advertising department and you estimate that the cost of this project is $13,000 today. Do you recommend that the firm accept this project
Business
1 answer:
timofeeve [1]3 years ago
6 0

Answer:

The fact the investment opportunity has a positive cash flow means that the project should be accepted since it is value-adding

Explanation:

We can evaluate the acceptability of the project using the net present value approach. The net present value is the present value of future cash flows discounted at the 11% required rate of return.

Present value=future cash flow/(1+required rate of return)^n

n is the year in which the cash flows are expected, it is 1 for year 1 cash flow and 2 for year 2 cash flow

NPV=$1,000/(1+11%)^1+$15,000/(1+11%)^2-$13,000

NPV=$75.24

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lidiya [134]

Answer:

C. 3;4

Explanation:

A cover letter is sent together with the resume to a potential employer. It details the job an applicant is applying for and their qualification for the position. The cover letter allows the applicant to elaborate on their skills and experiences in relation to the position sought after.

The cover letter is a perfect way to create an excellent first impression on the employer. It should be about three to four paragraphs long.

5 0
3 years ago
When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to?
Jlenok [28]

When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to purchasing or sale of up to the stated maximum number of round lots (the standard trading unit of the stock) at the stated price.

This is further explained below.

<h3>What is a firm?</h3>

Generally, A company providing professional services for compensation, such as law or accountancy, is called a "firm." One key tenet of "theory of the company" is that enterprises' primary purpose is to increase shareholder wealth.

In conclusion, By keeping a "firm market," a broker-dealer promises to buy or sell up to the maximum number of round lots (the stock's standard trading unit) at the quoted price.

Read more about the firm

brainly.com/question/19132323

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7 0
2 years ago
I need help with my assingemnt
Gekata [30.6K]

Answer:

idc

Explanation:

i do not care, not at all.

7 0
3 years ago
A promissory note
Sloan [31]

Answer: c. may be used to settle an accounts receivable.

Explanation: A promissory note is defined as a financial instrument that contains a written promise by the note issuer or maker to pay the note payee a definite sum of money at a specific future date or on demand and  may be used to settle an accounts receivable (the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers and are listed on the balance sheet as a current asset). They are commonly used in businesses as a form of short term financing as they can be exchanged for cash at a future time when account receivables have been collected.

8 0
3 years ago
Other things the same, which bond would you expect to pay the lowest interest rate?
Elis [28]

Answer:

d) a bond issued by the U.S. government

Explanation:

A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.

3 0
3 years ago
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