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Olegator [25]
3 years ago
11

Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 865 2 1,040 3 1,290 4 1,385

a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4
Business
1 answer:
andrezito [222]3 years ago
5 0

Answer:

Total FV= $5,080.86

Explanation:

Giving the following information:

Cash Flow:

Cf1= $865

Cf2= $1,040

Cf3= $1,290

Cf4= $1,385

Discount rate (i)= 8%

<u>To calculate the total future value, we need to apply the following formula to each cash flow:</u>

FV= Cf*(1+i)^n

Cf1= 865*1.08^3= 1,089.65

Cf2= 1,040*1.08^2= 1,213.01

Cf3= 1,290*1.08= 1,393.2

Cf4= 1,385

Total FV= $5,080.86

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The family should be less likely to eat out on Tuesday as compared to the general population.

Given that,

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3 years ago
How do organizations calculate various costs, and what do these calculations mean to business?
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Answer:

See the explanation section

Explanation:

Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.

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The cost of equity is: Group of answer choices equal to the amount of asset turnover the weighted average cost of capital the in
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Answer:

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