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
dsp73
3 years ago
14

Given the following information, calculate the net present value:Initial outlay is $50,000; required rate of return is 10%; curr

ent prime rate is 12%; and cash inflows at the end of the next 4 years are $60,000, $30,000, $40,000, and $50,000.A. less than 0B. equal to 0C. $87,734D. $93,542
Business
1 answer:
loris [4]3 years ago
6 0

Answer:

$93,542

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator.

Cash flow in year 0 = $-50,000

Cash flow in year 1 = $60,000

Cash flow in year 2 = $30,000

Cash flow in year 3 = $40,000

Cash flow in year 4 = $50,000

I = 10%

NPV = $93.542.11

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

You might be interested in
Miller Fruit wants to expand its citrus grove operations. The firm estimates that it needs $8.6 million to buy land and establis
sergeinik [125]

Answer:

2.072 rights

Explanation:

Amount needed to buy the land = $8.6 million = $8,600,000

stock outstanding = 540,000

Market price per share = $34.80

subscription price = $33 a share

Now,

Number shares to be issued = ( Amount needed ) ÷ ( subscription price )

= $8,600,000 ÷ $33

= 260606.06 shares

1 rights will be issued per stock

thus,

number of rights required for purchase

= ( stock outstanding ) ÷ ( Number shares to be issued  )

= 540,000 ÷ 260606.06

= 2.072 rights

3 0
3 years ago
A rights offering Question 16 options: a) is the least expensive way to raise capital. b) gives the firm a built-in market for n
zysi [14]

Answer: b. gives the firm a built-in market for new securities.

Explanation:

Rights offering are issued by companies when such companies wants to generate additional capital. This may be necessary when such company wants to meet its financial obligations and therefore need extra capital.

A rights offering gives the firm a built-in market for new securities as the security holder are already aware of the company and just buys additional securities.

7 0
3 years ago
It takes a total of 475 seconds for one technician to assemble one airrules smart phone, working alone. however, airrules manufa
maks197457 [2]
<span>Normally if one tecnician takes 475 seconds to assemble one air rule smartphone. Then it would take. 20 technicians X secs to do the same So It would take 20 tecnicians X secs = (20 * 475) / 1 = 9500 secs. I. e it takes 20 technicians 9500 secs to manufacture a smartphone. But airrules uses 20 technicians to manufacture the same phone in only 30 secs. So its efficiency would be: Number of secs it takes the 20 techician to manufacture the phone * efficiency = Normal of hours it would usually take 20 techician to manufacture the phone. So we have 30 * X = 9500 X = 9500/30 = 316.777. So they are 316.667 times as efficient.</span>
6 0
3 years ago
Which of the following is false regarding the FIFO inventory method?
puteri [66]

Answer: All of the other answer choices are true.

Explanation:

FIFO simply refers to “First-In, First-Out” and the method assumes that the oldest goods that are in the inventory of a company have been sold first and therefore, the costs that are paid for them will be used for the calculation.

The following are true regarding the FIFO method:

• FIFO under a perpetual inventory system results in the same cost of goods sold as FIFO under a periodic inventory system.

• A company can choose to account for the flow of inventory using the FIFO method even if this doesn’t match the actual flow of its inventory.

• Perishable goods often follow an actual physical flow that is consistent with the FIFO method assumptions.

Therefore, the correct option is D as all are true.

4 0
3 years ago
John walks into a grocery store and suddenly realizes that the prices on most of his favorite imported products are reduced. Whi
rosijanka [135]
The correct answer is D. I saw other people put this so sorry I don’t really know why I’m sorry
8 0
3 years ago
Other questions:
  • Four investors bought a real estate asset together and decided to divide the profits equally. Investor A invested $200,000; inve
    13·1 answer
  • _____is the function of coordinating the diverse activities and human resources of a company to produce a smooth-running operati
    7·1 answer
  • Q 1.25: a written code of ethics for a business would be most helpful to company employees when
    11·1 answer
  • Jose wanted to make a graph to show his budget for the month. what type of graph would be the most appropriate to graph for jose
    7·2 answers
  • Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called ______
    15·1 answer
  • A sales invoice included the following information: merchandise price, $4,000; transportation, $300; terms 1/10, n/eom, FOB ship
    7·1 answer
  • Data on consumer spending per capita or industrial purchasing trends would be identified in the ________ section of a global mar
    9·1 answer
  • Explain the benefits of international trade
    6·1 answer
  • what challenges might people living in a county or state with a high concentration of subprime scores be facing as a result of t
    9·1 answer
  • A monopolist has market power because it Group of answer choices none of the Answers are Correct. Faces a downward-sloping deman
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!