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AlladinOne [14]
3 years ago
13

Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$31 $7 $12 $22 Project

B -$19 $13 $6 $5 What are the projects' NPVs assuming the WACC is 5%
Business
1 answer:
katrin [286]3 years ago
3 0

Answer:

Project A's NPV = $5.56

Project B's NPV = $3.14

Explanation:

year          project A        project B

0                  -$31                -$19

1                     $7                 $13

2                   $12                 $6

3                  $22                 $5

Project A's NPV = -$31 + $7/1.05 + $12/1.05² + $22/1.05³ = -$31 + $36.56 = $5.56

Project B's NPV = -$19 + $13/1.05 + $6/1.05² + $5/1.05³ = -$19 + $22.14 = $3.14

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Answer:

The three sites that are listed as sensitive sites in the location and transportation (LT) category that should be built on are;

1. Wetlands

2. Prime farmland

3. Flood plains

Explanation:

The location and transportation category of credits is based on where the project is located and the accessibility to public transport. Accessibility is looked at in terms of how flexible the area fits in with different modes of public transport. Either by bus, or by train. These credits are awarded based on a number of factors that promotes environmental conservation, accessibility to public transport, and even public parks. The main goal of having this kind of rating systems is in to encourage green building systems. For example, by making public transport easily accessible to the public, the need for personal cars is greatly reduces. This in turn reduces the level of carbon emissions from the cars.

An attempt has also been made to protect building in sensitive locations like;

a. Wetlands: a wetland is distinct area where that is seasonally or permanently flooded with water. Building in such areas should be limited since the water is essential for human survival. Water in such areas also supports various Eco-systems and thus should not be tampered with. Building near wetlands also promotes pollution and thus should be avoided.

b. Prime farmland: this is a designated place by the United States department of agriculture that has the best physical and chemical environmental conditions for agricultural activities. They also need to be protected.

c. Floodplains: this is a low-lying area that forms part of a river basin where the river stretches out across the banks during flooding. Building in such areas should be prohibited since they can cause collapse and loss of lives. Buildings in such areas are also prone to pollution and thus should be avoided.

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3 years ago
On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight
Darya [45]

Answer: c. $94,240

Explanation:

On December 31, 2005, one payment has already been made which would mean that only 7 payments are left. As the first of these remaining 7 will be paid the year after, this is an ordinary annuity.

Note payable value = Present value of seven $20,000 payments

= 20,000 * Present value of ordinary annuity of 1 at 11% for 7 years.

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3 years ago
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a_sh-v [17]

Answer:

P0 = $9.0767092  rounded off to $9.08

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

  • D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
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P0 = 0.31 / (1+0.1)  +  0.36 * / (1+0.1)^2  + 0.51 / (1+0.1)^3  +  0.81 / (1+0.1)^4  +

[(0.81 * (1+0.025) / (0.1 - 0.025)) / (1+0.1)^4]

P0 = $9.0767092  rounded off to $9.08

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Engineers contributed very significantly to a country's development from an agricultural economy to the one that includes manufacturing communication services and exploration to the country's natural resources like 10 hydro power oil and gas

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B he wants to own his own business so he should study business
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