2 years ago

If a project has a net present value equal to zero, then:_______.

Business

1 answer:

Galina-37 [17]2 years ago

5 0

Answer: D. II, III, and IV only

Explanation:

Net Present Value (NPV) is used to know the worth of a project and if it's worthwhile or not. When the NPV of a project is 0, it means that the project won't bring about a gain or loss.

When a project has a net present value equal to zero, then,

• the project produces a rate of return that just equals the rate required to accept the project.

• the project is expected to produce only the minimally required cash inflows.

• any delay in receiving the projected cash inflows will cause the project to have a negative net present value.

Therefore, the correct option is D

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You own a stock which has produced annual returns of 11 percent, 3 percent, 8 percent, and 14 percent over the past four years,

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Answer:

C) 9.00; 8.92

Explanation:

The arithmetic rate of return is given by:

$R_{A} = \frac{11+3+8+14}{4} \\R_{A} = 9.00$

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$R_{G} = (\sqrt[4]{(1.11*1.03*1.08*1.14)} -1) *100 \%\\R_{G} = (1.0892-1) *100 \%\\R_{G} = 8.92$

Therefore, the arithmetic rate of return is 9.00 percent and the geometric rate of return is 8.92 percent

The answer is C) 9.00; 8.92.

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4 years ago

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4 years ago

A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity

TiliK225 [7]

Answer:

The production capacity the manufacturer should reserve for the last day = 206.00 units.

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p* = 0.33

Q = norminv(0.33,250,100)

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