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Evgen [1.6K]
3 years ago
7

You are considering opening a new plant.

Business
1 answer:
kotykmax [81]3 years ago
6 0

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

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7 0
4 years ago
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Answer:

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Explanation:

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3 0
3 years ago
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ch4aika [34]

Answer:

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In the given scenario Jeanne labelled decaffeinated coffee as caffeinated coffee. On consumption her co-workers claimed that the extra boost of caffeine helped them focus on their work.

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8 0
3 years ago
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IceJOKER [234]

Explanation:

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3 years ago
What amount is a reasonable tip for an airport skycap?
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3 years ago
Read 2 more answers
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