1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svetradugi [14.3K]
3 years ago
13

Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000

per year for four years and no salvage value. At a discount rate of 10 percent the projects net present value is
Business
1 answer:
svp [43]3 years ago
5 0

Answer:

$3,995.96

Explanation:

Cash flow summary for the project as entered in financial calculator is :

- $91,100 CF0

$30,000 CF1

$30,000 CF2

$30,000 CF3

$30,000 CF4

i/yr = 10 %

therefore,

Shift NPV gives a net present value of $3,995.96

thus,

At a discount rate of 10 percent the projects net present value is $3,995.96

You might be interested in
According to the 2018 Value Line Investment Survey, the growth rate in dividends for Ralph Lauren for the next five years will b
pantera1 [17]

Answer:

Higher than 0.5%

Explanation:

Since the rate of return is calculated as dividend payment/stock price + dividend growth rate and since that growth rate for the next five years will be 0.5 %, than rate of return will be higher than 0.5 %.

4 0
4 years ago
You would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be
Finger [1]

Answer:

$1,818,181.81

Explanation:

Data provided:

Amount that will be provided a year = $50,000

Expected rate of return = 2.75%

Now,

The Present value of perpetuity is given as:

Present value of perpetuity = \frac{\textup{Annual return}}{\textup{Expected rate of return}}

on substituting the respective values, we get

Present value of perpetuity = \frac{\textup{50,000}}{\textup{0.0275}}

or

Present value of perpetuity = $1,818,181.81

Hence,

The amount that must be deposited today to fund this gift is $1,818,181.81

5 0
3 years ago
The price of good B has a pattern such that P = $20 on Monday through Thursday of every week, and P = $25 on Fridays. If specula
Andru [333]

Answer:

The correct answer is D. increase; decrease.

Explanation:

Speculation consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the dominant price and not the gain derived from its use, or of some kind of transformation carried out on these or of the transfer between different markets.

A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.

The speculation is based on the forecast and the perception, so that the speculator can also be wrong if he does not correctly anticipate the evolution of future prices, so he will have to sell cheap something he bought expensive. The speculative market therefore rewards those who know how to predict.

3 0
3 years ago
Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and
Llana [10]

Answer:

maximum profit = $7500

so correct option is c  $7500

Explanation:

given data

mean = 500

standard deviation = 300

cost = $10

price = $25

Inventory  salvaged = $5

to find out

What is its maximum profit

solution

we get here maximum profit that is express as

maximum profit = mean × ( price - cost )   ..................................1

put here value in equation 1 we get maximum profit

maximum profit = mean × ( price - cost )

maximum profit = 500 × ( $25 - $10 )

maximum profit = 500 × $15

maximum profit = $7500

so correct option is c  $7500

4 0
4 years ago
A coupon bond that pays interest of $90 annually has a par value of $1,000, matures in 5 years, and is selling today at a $15 ab
Digiron [165]
The answer would be A
5 0
3 years ago
Other questions:
  • Maddy needs to add the numbers in cells B3–B9. She estimates the answer will be about 1,000. She enters the formula, =B3 B4 B6 B
    6·2 answers
  • Who wants to be brainily? whoever comments first gets to be brainily 100 Point?...
    6·2 answers
  • Tessa is trying out a new vinaigrette recipe and can't remember the common ingredient ratios. Which of the following is the typi
    9·2 answers
  • Indicate which of the following costs should be expensed when incurred. (a) $13,000 paid to rearrange and reinstall machinery. s
    12·1 answer
  • What is the difference between a good and a service?
    9·1 answer
  • On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,
    7·2 answers
  • The job outlook for physical therapists
    10·2 answers
  • Sarah invests $2,700 today in an account that pays 6 percent interest compounded annually. She wants to know the total balance i
    11·1 answer
  • Below are the transactions for Ute Sewing Shop for March, the first month of operations.
    11·1 answer
  • The open systems model of ob assumes that ________. organizations exist in a vacuum organizations are contingent organizations a
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!