Answer:
The NPV of this investment is $64,581.75
Explanation:
Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:
Where
NPV = Net Present Value
CF = The cash flow stated in the problem by year
r= discount rate (in our case, 0.08 or 8%)
Now, let´s solve this.
So, the net present value of this project is $64,581.75
Best of luck.
Answer:
Gross Profit in Year 1 = $200000
so correct option is B. $200,000
Explanation:
given data
historical preservation project = $2,500,000
time = 2 year
estimated costs = $2,000,000
Actual costs Years 1 = $800,000
Actual costs Years 2 = $900,000
to find out
what amount of gross profit would Superior report in Year 1
solution
we find here first Percentage Completion that is express as
Percentage Completion = Cost to date ÷ Estimated Total Cost .............1
put her value we get
Percentage Completion =
Percentage Completion = 40%
and
Revenue Recognized will be here
Revenue Recognized = Percentage Completion × Total estimated Revenue ...............2
Revenue Recognized = 40 % × 25000000
Revenue Recognized = 1000,0000
so here Gross Profit in Year 1 will be
Gross Profit in Year 1 = Revenue Recognized - Cost to date of year 1 ..............3
Gross Profit in Year 1 = 1000,0000 - v800000
Gross Profit in Year 1 = $200000
so correct option is B. $200,000