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ozzi
3 years ago
6

A company has been determined the they plan to invest $9,800,000 in a new solar field in November 2020. The investment will star

t paying off providing $200,000 per month starting in May 2021. For planning purposes, the project life would be to November 2030. What is the present value of this project at a required rate of return of 6% per year (Hint - use XNPV)?
Business
1 answer:
Gnesinka [82]3 years ago
7 0

Answer:

The Net Present Value of this project is:

$7,358,638.89

Explanation:

a) Data and Calculations:

Estimated cost of investment = $9,800,000 in November 2020

Monthly benefits = $200,000 starting from May 2021

Period of benefits = 9.5 years

Required rate of return = 6% p[er year

Using the Excel NPV (XNPV) function, the NPV = $7,358,638.886

b) The Present Value of the project is the discounted value of the cash inflows of $200,000 for 114 months and $9,800,000 on day 1.  An excel copy of the calculations is attached.

Download xlsx
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You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog
KonstantinChe [14]

Answer:

I will:

b) Hold meetings with employees, volunteers, and representatives of other local shelters and listen carefully as they brainstorm ideas.

c) Honestly acknowledge the challenges the organization faces while also communicating optimism about finding the resources to fulfill your mission.

Explanation:

a) Withholding information about the organization's financial picture will not make employees to be loyal.  They are likely to find out the true position sooner than later.  If information is withheld and they find out later, they would never be loyal.  They would certainly leave the organization before financing is found for the organization sustenance.

b) Deceiving people by staying in the office and maintaining a "poker face" is not an option either.  "Poker face" cannot last forever.  One day, the true picture will show on the face.  Deception is not an art for business progress.

8 0
3 years ago
The current dividend yield on CJ's common stock is 1.89 percent. The company just paid a $1.23 annual dividend and announced pla
belka [17]

Answer:

The required rate of return on this stock is 13.27%

Explanation:

The computation is shown below:

First, we have to determine the dividend growth and then the growth rate. Afterward, the final answer will come

Dividend growth rate = Next year dividend - current year dividend

= $1.37 - $1.23

= $0.14

Now the growth rate would be equal to

= (Dividend growth) ÷ (current year dividend)

= ($0.14) ÷ ($1.23)

= 11.38%

Now add the dividend yield to the growth rate

So, the required rate of return would be

= 11.38% + 1.89%

= 13.27%

8 0
3 years ago
Another name for back rushing is?
zhenek [66]

Answer:

Ruffing

Hope this helps!!!

6 0
3 years ago
Luisa has a net spendable income of $1,900 per month. What is the maximum amount of money that she should budget for housing?
Ymorist [56]
I think $355 hope it helps 
5 0
4 years ago
A mass transit authority charges bus fares of $1.25 during morning rush hours but only $1.00 during late morning non-rush hours.
amm1812

Answer:

The correct answer is more inelastic; more elastic.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.

The elasticity of demand, also known as the elasticity-price of demand, is defined as the percentage change of the quantity demanded before a percentage change in the price.

An elastic demand is that demand that is sensitive to a change in price. In this way, a small variation in the price causes a more than proportional change in the quantity demanded. Thus, for example, if the price increases by 10% and in response the quantity demanded is reduced by more than 10%, then the demand is said to be elastic.

7 0
3 years ago
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