1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
harina [27]
3 years ago
15

Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project alpha) that will require an

initial investment of $500,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $325,000
Year 2 $425,000
Year 3 $450,000
Year 4 $400,000
Blue Hamster Manufacturing Inc’s weighted average cost of the capital is 10%, and project alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)?
a. $871,690
b. $1,157,991
c. $1,182,991
d. $757,991
Business
1 answer:
Neko [114]3 years ago
8 0

Answer:

d. $757,991.26

Explanation:

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

= (325,000/1.10) + (425,000/1.10^2) + (450,000/1.10^3) + (400,000/1.10^4)

= $1,257,991.25743

NPV = Present value of inflows - Present value of outflows

NPV = $1,257,991.25743 - $500,000

NPV = 757991.25743

NPV = $757,991.26

You might be interested in
I. the European Union
svet-max [94.6K]

Answer:

C). I, II, and IV only

Explanation:

The Association of Southeast Asian Nations (ASEAN), the European Union (EU), and the North American Free Trade Agreement (NAFTA) are bodies that promote trade and economic cooperation among member countries.  They are treaties that aim are accelerating economic and social integration by eliminating or minimizing restrictions on the movement of people and commodities across borders.

Opec is an association of oil-producing countries. Its objective is to have similar oil policies in member countries. Opec is a cartel-like group that aims at controlling international oil prices.

8 0
3 years ago
Big Canyon Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and a p
PSYCHO15rus [73]

Answer:

6.32%

Explanation:

Bonds yield amount = $1,030 × 6.14% = $63.242

Coupon rate = Bond yield amount ÷ Par value of the bond = $63.242 ÷ $1,000 = 0.063242, or 6.32%

Therefore, the coupon rate on the bonds must be 6.32%.

4 0
3 years ago
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can
Ierofanga [76]

The true statement out of all is

B) Georgeland has both an absolute and a comparative advantage in producing clothing.

Explanation:

This is because Absolute advantage is when one firm or a producer is able to produce more of a product using less resources or less time or more of the product in the same resources or same time as the other.

Comparative advantage is found out at the added bonus of having the product be as viable as it is advantageous which means that the producer could also be making another product and would have the advantage in that too so either one of them is equally profitable.

5 0
3 years ago
Toby is purchasing a $15 cake for their mother's birthday.
miss Akunina [59]
Toby should use his debit card. he should use his debit card because it’s only 15 dollars which is not an expensive amount. using his debit card would keep the payments he has to make on his credit card lower
7 0
2 years ago
Miniaturization of Wisynco sales?
Dmitriy789 [7]

Explanation:

Wisynco Group Limited has 1,500 total employees across all of its locations and generates $195.02 million in sales (USD).

4 0
2 years ago
Other questions:
  • According to zillow, the typical selling price of single-family homes for sale in Corvallis, Oregon in Spring 2018 are provided
    15·1 answer
  • _____ is a problem-solving strategy that involves repeated comparisons between the current state and the goal state. working-bac
    14·1 answer
  • An increase in investment shifts the ae curve upward by an amount equal to the​ ______, and shifts the ad curve rightward by an
    5·1 answer
  • Information from observers should be used as a supplement to information from incumbents. Identify the statement that is most li
    12·1 answer
  • On January 1, 2015, Fullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bear
    11·1 answer
  • In December 2012, Eric hires a band to play at a huge graduation party he is planning to hold in May, 2014. The deal is never pu
    9·1 answer
  • A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 122 Japanese yen 1 British pound = 2.25 Swis
    13·1 answer
  • In the circular flow model, who supplies factors of production in exchange for income?
    14·1 answer
  • An investigator conducting a study of a medical device under an ide is required to complete and sign
    8·1 answer
  • Kingbird, Inc. receives a $11000, 9-month, 6% promissory note from Sunland Company in settlement of an open accounts receivable.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!