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zloy xaker [14]
3 years ago
7

Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash flows of $10,000

in each of three years. Project 2 will return $5,000 in year 1, $10,000 in year 2, and $15,000 in year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 2
Business
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer:

NPV= $4,079.63

Explanation:

Giving the following information:

Initial cost= -$20,000

Rate of return= 10%

<u>To calculate the net present value, we need to use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

<u>First, we need to discount the cash flows:</u>

PV= Cfn / (1+i)^n

Cf1= 5,000/1.1= 4,545.45

Cf2= 10,000/1.1^2= 8,264.46

Cf3= 15,000/1.1^3= 11,269.72

Total PV= $24,079.63

Now, the NPV:

NPV= -20,000 + 24,079.63

NPV= $4,079.63

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The Paleoanthropologists would have a greater interest in the origin of the human ancestors because they focus on studying about the ancestors of the humans with the distant past and they trace it back one by one in order to find out an origin.

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4 years ago
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Answer: • Water power to run machines

• rivers for transportation of goods

• natural resources for production

Explanation:

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The factors of industrialization does Baines cite in the reading include:

• Water power to run machines

• rivers for transportation of goods

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3 years ago
Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future. Matthew eagerly accepts. Do they h
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Answer:

Probably not, because the terms are not definite.

Explanation:

A contract is considered to be valid when there is a written or expressed agreement for one party to deliver goods or services to another.

The terms are clearly stated. For example the price, time of sale, acceptance of price, and so on.

A valid contract has the following elements: offer, acceptance, agreement, and consideration.

In the given scenario where Kelly tells Matthew that she will sell him one of her motorcycles at some time in the future and Matthew eagerly accepts. There is an agreement but there is no specific offer and consideration of price and also the time of transaction.

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3 0
4 years ago
Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It no
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Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

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Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

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3 years ago
Consider the following​ statement: ​"An increase in supply decreases the equilibrium price. The decrease in price increases​ dem
pochemuha

Answer:

The correct answer is option A.

Explanation:

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The statement given in the question is false. A change in demand is caused by a change in other factors while the price of the product remains the same. The change in price affects the quantity demanded.

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