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
Law Incorporation [45]
3 years ago
6

g Suppose you have a possible investment that costs $100 today but, starting one year from now, pays $5 in some years with proba

bility 1/3, and in other years pays $10 with probability 1/3, and in other years pays 8$ with probability 1/3. That is, the probability distribution over possible payments ($5,$8,$10) is (1/3,1/3,1/3). What is the expected net present value of this investment
Business
1 answer:
Goryan [66]3 years ago
5 0

Answer:

Expected NPV=$666.67

Explanation:

Initial Cost=$100

NPV in case cash inflow is $5=-100+5/1%=$400

NPV in case cash inflow is $8=-100+8/1%=$700

NPV in case cash inflow is $10=-100+10/1%=$900

Expected NPV=(1/3)*400+(1/3)*700+(1/3)*900=$666.67

You might be interested in
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital wa
valina [46]

Answer:

Net   Cash flow   in year 4   $46,140<u> </u>

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year    4                                               cash flow     ;

                                                                     $

Operating cash flow                               $58,500

Working capital recouped                     4,950

Scrap value                                            6,090    

Tax payable (40%*58500)                      <u>(23400 )</u>

  Net   Cash flow                            <u>      46,140 </u>

3 0
3 years ago
Which of the following is not an example of one of the four mail advantages of prices on a free market economy
Arte-miy333 [17]
The correct answer is

8 0
3 years ago
In a production operation of an electronics firm, a company manufactures I/O circuit chips that is used in a final assembly proc
Feliz [49]

Answer:

defective

Explanation:

In an electronic firm it is necessary to keep check for every circuit as they turn out to be defective. There can be minor error is circuit formation but this will be considered as defective because circuits are very sensitive and even minor error can lead to short circuits which could lead to a disaster. It is necessary for a firm to keep track and quality of every circuit should be checked.

3 0
3 years ago
When the quantity of coal supplied is measured in kilograms instead of pounds, the demand for coal becomes
wolverine [178]

Answer:

the quantity of coal becomes more elastic

hope this helps you ☺️☺️

3 0
3 years ago
(GIVING BRAINLIST!!!!!!)
Blizzard [7]
1. A - personal brand
2. A - showcase your accomplishments
3 0
4 years ago
Read 2 more answers
Other questions:
  • When does information become a liability for an organization?
    7·1 answer
  • When an instructor identifies an academic integrity violation within the classroom, the instructor has the option to report this
    14·1 answer
  • Which of the following is an important principle for effectively interacting with the audience during presentations? Multiple Ch
    12·1 answer
  • 4. George makes 2.9% commission. Last week, George sold 4 cars at the following prices:
    9·1 answer
  • What is a characteristic of the leader substitutes model?
    10·1 answer
  • January 1, 2021, Smith Co. purchased common stock of North Company for $500,000. North Company has common stock outstanding of $
    9·1 answer
  • Which of these is not a main advantage for a business joining a cooperative?
    9·2 answers
  • When a binding price ceiling is imposed on a market to benefit buyers,
    10·1 answer
  • NeXL
    8·1 answer
  • Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales. According to asset intensity, for ever
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!