Question
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:
Year cashflow
0 -100
1-10 15
0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Answer:
NPV= -$32.58
Explanation:
The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 5%,, Rm-15%, β- 1.30
Ke=5% + 1.30× (15-5)= 18%
The NPV = Present value of cash inflow - initial cost
= A×(1-(1+r)^(-10)/r - initial cost
A- 15, r-18%
NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58
NPV = -$32.58
(310-130=180)
debit cash $180; credit Accounts Payable, $180
Hope this helped :) !
Answer:
The definition of the problem is listed in the explanation segment below.
Explanation:
The diverse worldview is referred to as one of the OLI systems, in which OLI refers to possession, place, and internalization.
- Organizations such as Kasapreko have been looking for potential customers and have used distant markets such as Nigeria, Africa as well as Germany as either a path to expanding industry with a large portfolio and selling more revenue-generating products. However, companies see strategies to increase expertise by allowing efficiencies of scale. Concurrently, the statistics that suggest that the company is searching for options to achieve scale economies as well as minimize costs per unit by that competence by entering various markets.
- Shareholding benefit talks for focus points which represent the unique upper hand of the firm's ideas by engaging in FDI. The Kasapreko company has planned R&D to produce experimental data informative, natural-based blended beverages in Ghana and seems to be unprecedented.
<u>Advantage of Location:</u>
The corporation has its leading headquarters throughout Ghana which is suitable for trading platforms such as South Africa and Nigeria as well as, in addition to using the development of digital technology/data innovation, such as the internet stock management framework, provides the organization an odd phenomenon through which to come to terms with coordination employment.
<u>Advantage of Internationalization:</u>
It has been allowed the company to create an integrated quality assurance system and an object development facility in there and, in turn, to carry out its special bespoke bottles and caps.
Gross pay is the amount of income before taxes and deductions. The amount by which the gross pay is reduced is $174.66.
<h3>What is gross pay?</h3>
The gross pay is the amount of salary or wages that is before the taxes or other deductions. The expense of tax and deductions are subtracted from the gross pay to calculate the net pay.
The gross pay of Marquis in the given question is $816. His gross pay will be reduced by the taxes to calculate the net pay.
The amount of reduction will be the sum of all the taxes levied such as federal tax, social security tax, and so on.
Therefore the amount by which the gross pay will be reduced is:
The state tax is calculated as a percentage of federal tax. The state tax is:
Therefore the total amount of reduction is:
Hence, the correct option is d.
Learn more about gross pay here:
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Answer:
$1,600
Explanation:
It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600
