Answer:
<h2>h = 9, k = 8</h2>
Step-by-step explanation:

Answer:
$265.65
Step-by-step explanation:
Given :
WACC: 9.00%
Year 0 1 2 3 Cash flows (-$1,000) $500 $500 $500
The NPV is calculated thus :
Initial cashflow + Σ additional cash flows / (1 + r)
Rate, r = 9% = 0.09
(1 + r) = (1 + 0.09) = 1.09
NPV = - 1000 + (500 / (1.09)¹ + (500 / 1.09)² + (500 / (1.09)³
NPV = - 1000 + 458.71559 + 420.83999 + 386.09174
NPV = 265.64732
NPV = 265.65 (2 DECIMAL PLACES)
Answer:
Answer:
Option 1, by $851.70
Step-by-step explanation:
Option 1 total:
$8000 + $765.44*5*12 = $53926.40
Option 2 total:
$8000 + $626.25*4*12 + 0.38*$43995 = $54778.10
The difference:
$54778.1 - $53926.40 = $851.70
As we see the option 1 is cheaper by $851.70
Correct answer choice is the last one
Step-by-step explanation: