Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
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
Answer:
Half step
Explanation:
If you're talking about music, then a half step is smaller than a step.
Answer:
After 18.44 year loan will be paid
Explanation:
We have given an entrepreneur borrows $500,000 today.
So total amount is $500000
Annual payment is of $70000
Rate of interest r = 11.5 %
We have to find the time period
We know that total amount is given by
, here A is total amount , P is yearly paid amount, r is rate of interest and n is time period
So 
Taking log both side
n = 18.44 year
So after 18.44 year loan will be paid
The first one is specific because it tells what kind of traveling they want to check that their friends have done
