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aniked [119]
3 years ago
12

An investment that costs $5,000 will produce annual cash flows of $3,000 for 3 years. Using a required return of 8%, the investm

ent will generate a NPV of $
Mathematics
1 answer:
Bess [88]3 years ago
7 0

Answer:

The investment will generate a NPV of $2,731.

Step-by-step explanation:

Cost of an investment (PV) = $5,000

Annual cash flows = $3,000

Period of investment = 3 years

Interest rate of return = 8%

Annuity Factor = 2.577 (for 3 years at 8% per year)

Present value of the annuity = $3,000 * 2.577 = $7,731

NPV = Annuity PV minus PV of investment cost

= $7,731 - $5,000

= $2,731

b) The NPV (net present value) of $2,731 is the difference between the present value of the annual cash flows $7,731 and the investment cost of $5,000.  The resulting NPV is positive and the investment should be accepted.

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A geometric sequence is defined by the explicit formula an = 5(-3)n-1. What is the recursive formula for the nth term of this se
Ivan
An=a1(r)^(n-1)
an=5(-3)^(n-1)
so then each term is multiplied by -3

so
f(n)=-3(f(n-1))
and
f(n)=5
6 0
3 years ago
The probability that a single radar station will detect an enemy plane is 0.65.
taurus [48]

Answer:

a) We need 4 stations to be 98% certain that an enemy plane flying over will be detected by at least one station.

b) If seven stations are in use, the expected number of stations that will detect an enemy plane is 4.55.

Step-by-step explanation:

For each station, there are two two possible outcomes. Either they detected the enemy plane, or they do not. This means that we can solve this problem using concepts of the binomial probability distribution.

Binomial probability distribution

The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.

P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}

In which C_{n,x} is the number of different combinatios of x objects from a set of n elements, given by the following formula.

C_{n,x} = \frac{n!}{x!(n-x)!}

And p is the probability of X happening.

In this problem, we have that:

The probability that a single radar station will detect an enemy plane is 0.65. This means that n = 0.65.

(a) How many such stations are required to be 98% certain that an enemy plane flying over will be detected by at least one station?

This is the value of n for which P(X = 0) \leq 0.02.

n = 1.

P(X = 0) = C_{1,0}.(0.65)^{0}.(0.35)^{1} = 0.35

n = 2

P(X = 0) = C_{2,0}.(0.65)^{0}.(0.35)^{2} = 0.1225

n = 3

P(X = 0) = C_{3,0}.(0.65)^{0}.(0.35)^{3} = 0.0429

n = 4

P(X = 0) = C_{4,0}.(0.65)^{0}.(0.35)^{4} = 0.015

We need 4 stations to be 98% certain that an enemy plane flying over will be detected by at least one station.

(b) If seven stations are in use, what is the expected number of stations that will detect an enemy plane?

The expected number of sucesses of a binomial variable is given by:

E(x) = np

So when n = 7

E(x) = 7*(0.65) = 4.55

If seven stations are in use, the expected number of stations that will detect an enemy plane is 4.55.

6 0
3 years ago
Write an equation of the lines passes through (4,1) and is parallel to y= -2x+7
Nastasia [14]

Answer:

y = -2x + 9

Step-by-step explanation:

The parallel line has an equation of y = -2x + 7;

And its slope is -2.

The slope of the line that passes through (4,1) is also -2 since parallel lines have the same slope.

Taking another point (x,y) on the line that passes through (4,1):

slope(m) = change in y ÷ change in x

-2 = \frac{y - 1}{x - 4}

Cross multiplying gives;

y - 1 = -2x + 8

y = -2x + 9

5 0
3 years ago
5x + 2 = 7 <br> X = ?<br> Can you please help me with this
daser333 [38]

Answer:

x=1

Step-by-step explanation:

Move the constant to the right side of the equation and change its sign to the opposite. the constant in this equation is +2. the new equation looks like this: 5x=7-2. After subtracting on the right (7-2) the new equation should be 5x=5. divide both sides of the equation by 5. the answer is x=1

8 0
2 years ago
In a recent survey of college professors, it was found that the average amount of money spent on entertainment each week was nor
Alenkinab [10]

Answer:

0.0918

Step-by-step explanation:

We know that the average amount of money spent on entertainment is normally distributed with mean=μ=95.25 and standard deviation=σ=27.32.

The mean and standard deviation of average spending of sample size 25 are

μxbar=μ=95.25

σxbar=σ/√n=27.32/√25=27.32/5=5.464.

So, the average spending of a sample of 25 randomly-selected professors is normally distributed with mean=μ=95.25 and standard deviation=σ=27.32.

The z-score associated with average spending $102.5

Z=[Xbar-μxbar]/σxbar

Z=[102.5-95.25]/5.464

Z=7.25/5.464

Z=1.3269=1.33

We have to find P(Xbar>102.5).

P(Xbar>102.5)=P(Z>1.33)

P(Xbar>102.5)=P(0<Z<∞)-P(0<Z<1.33)

P(Xbar>102.5)=0.5-0.4082

P(Xbar>102.5)=0.0918.

Thus, the probability that the average spending of a sample of 25 randomly-selected professors will exceed $102.5 is 0.0918.

5 0
3 years ago
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