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Bad White [126]
3 years ago
10

A firm has four different investment options. Option A will give the firm $10 million at the end of one year, $10 million at the

end of two years, and $10 million at the end of three years. Option B will give the firm $5 million at the end of one year, $10 million at the end of two years, and $15 million at the end of three years. Option C will give the firm $15 million at the end of one year, $10 million at the end of two years, and $5 million at the end of three years. Option D will give the firm $21 million at the end of one year, nothing at the end of two years, and $9 million at the end of three years. Which of these options has the highest present value if the rate of interest is 5 percent
Business
1 answer:
xxMikexx [17]3 years ago
8 0

Answer:

The answer is "Option D".

Explanation:

Using the formula for calculating present value:

= \frac{Future \ value}{(1+r)^n}\\\\

that's why "Option D" is correct.

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Marco wants to cancel his department store credit card so he threw it away after he paid last month's balance. Was this a good i
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Answer:

1. No, becuase someone could steal it.

2. No, becuase the fine you get for not paying a bill will grow.

Explanation:

3 0
3 years ago
PLEASE ANSWER SOON!!!!
Gwar [14]
Currency I think.  It's given in exchange for an item.
4 0
3 years ago
Read 2 more answers
Margarite's Enterprises is considering a new project that will require $345,000 for new fixed assets, $160,000 for inventory, an
atroni [7]

Answer:

NPV = (53,222.44)

Explanation:

Net fixed asset                              345,000

Working capital

160,000 inventory + 35,000 Ar =   195,000

short term deb                                 (110,000)

net working capital                           85,000

Total investment                            430,000

salvage value 345,00 x 25% = 86,250

release of the working capital  85,000

Cash flow at end of project      171,250

annual cash flow

sales             550,000

cost              (430,000)

depreciation    69,000

EBT                   51,000

tax expense 35%

                        (17,850)

net income       33,150

+ dep                 69,000

cash flow           102,150

Now we calculate the present value of the net cash flow and the present alue fothe end of the project

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 102150

time 4

rate 0.15

102150 \times \frac{1-(1+0.15)^{-4} }{0.15} = PV\\

PV $291,636.04

\frac{Principal}{(1 + rate)^{time} } = PV  

Principla (sum of salvage and released Working capital   171,250.00

time   5.00

rate   0.15

\frac{171250}{(1 + 0.15)^{5} } = PV  

PV   85,141.52

NPV = 291,636.04 + 85,141.52 - 430,000 = (53,222.44)

6 0
3 years ago
Suppose that congress hears about how well you\'re doing in your economics courses and seeks your advice on creating some public
Ksju [112]
I would suggest livelihood programs that would maximize information and proper training to study on self-employment having a small income business (food, product) or service (home utility services and technical assistance) that people can do. Provided that the government would also allow people to have start-up loan for a business. Online employment can also be opened to them for freelance opportunity, 
8 0
3 years ago
A manufacturing company has budgeted direct labor hours of 600 at a variable overhead rate per direct labor hour of $20. The bud
LekaFEV [45]

Based on the labor hours and the overhead rate as well as the fixed cost, the total budgeted overhead cost will be $12,500.

<h3>What is the budgeted overhead cost?</h3>

This can be found as:

= (Variable cost per labor hour x Number of labor hours) + Fixed overhead cost

Solving gives:

= (20 x 600) + 500

= 12,000 + 500

= $12,500

In conclusion, the total overhead cost that would be budgeted is $12,500.

Find out more on budgeted costs at brainly.com/question/25406806.

3 0
2 years ago
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