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shtirl [24]
3 years ago
6

A capital budgeting project has a net investment of $415,000 and is expected to generate net cash flows of $138,000 annually for

4 years. What is the net present value at a 11% required rate of return?
Business
1 answer:
kirill [66]3 years ago
5 0

Answer:

the net present value is $13,131

Explanation:

The computation of the net present value is shown below

As we know that

Net present value = Annual cash inflows × PVIFA factor for 4 years at 11% - Initial investment

= $138,000 × 3.1024 - $415,000

= $428,131 - $415,000

= $13,131

Hence, the net present value is $13,131

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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How do you know which unit of a conversion factor must be in the denominator?
Zinaida [17]
If it does help please Mark Brainliest...

The unit that is used in the denominator is the one to cancels the unit that appears in a numerator.


Thanks
5 0
3 years ago
Wealth creating transactions are more likely to occur a. ​With private property rights b. ​With contract enforcement c. Both a a
Marina86 [1]

Answer: C

Explanation:

Wealth is the gradual gathering of profits, assets or income over a period of time. It is the gradual increase in ones assets over a sustained period.

Wealth creating transactions can be found both in contract enforcement and private property rights. The prosperity and economic development of a country can be attributed to the respect accorded to its citizens property rights.

Property rights gives room for entrepreneurship which can eventually lead to wealth accumulation. Contract enforcement also generate wealth for individuals.

8 0
3 years ago
In coming years, high-tech growth areas such as computers, biotechnology, and robots are likely to experience a:
Sergio039 [100]

Answer:

C. shortage of skilled labor.

Explanation:

The invention of high-tech (computers, biotechnology, robots, drones, self driving vehicles and so an) is reducing the involvement of skill human labor which will continue incoming years. For example humans carryout the task of carrying-out calculation several years ago, but in recent years computers carry out such works and at a faster pace. Also routine human works such as arranging, bottling, pasting of labels can be carried-out by well programmed out and trained robots. These and many more will cause the shortage of labor(human) in coming years.

5 0
3 years ago
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.98 and an offer price of ​$22.90. ​Today, it's being
Allisa [31]

Answer:

12.75%

Explanation:

Given that

Net assets value = $24.19

Dividend and capital gain distribution = $1.63

Offer price = $22.90

The computation of Holding period return is shown below:-

= (Net assets value + Dividend and capital gain distribution - Offer price) ÷ Offer price

= ($24.19 + $1.63 - $22.90) ÷ $22.90

= $2.90 ÷ $22.90

= 12.75%

So, for computing the holding period return we simply applied the above formula.

5 0
3 years ago
A perfectly competitive firm faces a __________ demand curve. Group of answer choices upward sloping downward-sloping perfectly
qwelly [4]

A perfectly competitive firm faces a downward-sloping demand curve.

<h3>What is demand curve?</h3>

It is a visual illustration of the connection between product pricing and demand-side quantity. The graph is built with amount demanded on the horizontal axis and price on the vertical axis.

Demand curve has two types-

  • individual demand curve: The quantity that a specific household wants at different prices is represented by a demand curve for that particular household. The graphic representation of the individual demand schedule is another way to describe it. It can be created by analyzing consumer behavior in response to price changes.
  • market demand curve: The total of each individual demand curve for a certain good on the market constitutes the market demand curve. It displays the quantity of the commodity that is demanded at various pricing points. The market demand curve has a negative, or downward, slope because quantity requested declines as price rises.
<h3>What is downward-sloping demand curve?</h3>

A demand curve demonstrating how demand declines as price rises.

The price elasticity of demand is always negative for a downward-sloping demand curve since the price and quantity requested move in the opposite directions.

To know more about the demand curve, here

brainly.com/question/1139186

#SPJ4

5 0
2 years ago
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