Answer:
$19,700,214.13
Explanation:
According to the scenario, computation of the given data are as follow:-
WACC = (Debt Equity Ratio ÷ 1 + Debt Equity Ratio) × After Tax Cost of Debt + (1 ÷ Debt Equity Ratio) × Cost of Equity
=(.75 ÷ 1+.75) × 0.052+(1 ÷ 1.75) × 0.124
= (.75 ÷ 1.75) × 0.052 + 0.57 × 0.124
= 0.43 × 0.052 + 0.071
= 0.0934 = 9.34%
Project Discount Rate = WACC + Adjustment Factor Rate
= 9.34% + 3% = 12.34%
If NPV is positive, we would accept the project:-
PV of Future Cash Flow = Initial After Tax Cash Savings ÷ (Project Discount Rate - Adjustment Factor Rate)
= $1,840,000 ÷ (0.1234-0.03)
= $1,840,000 ÷ 0.0934
= $19,700,214.13
According to the analysis, the project should only taken when the NPA is less than $19,700,214.13.
Answer:
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Explanation:
Answer:
Mike has a comparative advantage in the production of computers.
Explanation:
Mike's opportunity cost of producing trucks instead of computers = 10 / 10 = 1.
Mike's opportunity cost of producing computers instead of trucks is 10 / 10 = 1.
Debra's opportunity cost of producing trucks instead of computers = 3 / 9 = 0.333.
Debra's opportunity cost of producing computers instead of trucks = 9 / 3 = 3.
Mike's opportunity cost of producing computers instead of trucks is 1, while Debra's is 3. Therefore, Mike has a comparative advantage in the production of computers.
Given:
1997 - 5,000
2012 - 9,500
9,500 - 5,000 = 4,500
2012 - 1997 = 15 years
(9,500/5,000)^1/15 - 1
1.9^1/15 - 1
1.043718 - 1 = 0.043718
0.043718 * 100% = 4.3718%
The answer is D.) 4.37%
Answer:
second answer
fourth answer
first answer
Explanation:
because,if you want to buy a car,you need to budget your money...it is worth for you to buy it or not...
