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Maru [420]
3 years ago
8

NDS Industries is evaluating a project with an initial investment at Time 0 of $640,000. The present value of the levered cash f

lows is $729,400 and the net present value of the project is $157,000. Using the flow-to-equity method of valuation determine the amount borrowed.
Business
1 answer:
RoseWind [281]3 years ago
3 0

Answer: $67600

Explanation:

Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:

NPV = $157000

Add : Initial investment = $640000

Present value of cash inflow = $797000

Less : Present value of Levered cash flow = $729400

Amount borrowed = $67600

Therefore, the amount borrowed is $67600.

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4 years ago
On their birthdays employees at a large company are permitted to take a 60-minute answer
Dvinal [7]

Answer:

Full question: <em>On their birthdays, employees at a large company are permitted to take a 60-minute lunch break instead of the usual 30 minutes. Data were obtained from 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday. The company wishes to investigate whether these data provide convincing evidence that the mean time is greater than 60 minutes. Of the following, which information would NOT be expected to be a part of the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance?</em>

<em>Answe</em><em>r: Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes. </em>

Explanation:

<em>From the given question let us recall the following statements:</em>

<em>Employees at a large company are permitted to take a 60-minute Lunch break instead of the  30 minutes.</em>

<em>Data was gotten from = 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday</em>

<em>Given that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes.</em>

<em>The company tries to investigate the data to know that the mean is greater than 60 minutes</em>

<em>the next step is to find the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance</em>

<em>Therefore,</em>

<em>Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes. </em>

<em>Or</em>

<em>The P-value> 0.05</em>

<em>The mean time is not greater than 60 minutes</em>

6 0
3 years ago
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