This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Saint Mary's is offered a contract, which offers a net present value of $15 000 if the required rate ... (Read 659 times)

londonang

  • Hero Member
  • *****
  • Posts: 540
on: Jun 7, 2019

Question 1

A firm invests $200 000 in machinery that yields net after-tax cash flows of $90 000 at the end of each of the next three years. The opportunity cost of capital is 12%. What is the net present value of the project (to the nearest thousand dollars)?
◦ $16 000
◦ -$16 000
◦ $8000
◦ $0
◦ -$8000

Question 2

Saint Mary's is offered a contract, which offers a net present value of $15 000 if the required rate of return is 12%. Alternatively, net present value is -$12 000 if the required rate of return is 18%. At what rate of return, would the NPV be zero?
◦ 14.5%
◦ 13%
◦ 13.7%
◦ 15%
◦ 14%
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by londonang on Jun 7, 2019

emily12345

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 7, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


londonang

  • Hero Member
  • *****
  • Posts: 540
Reply #2 on: Jun 7, 2019
Thanks


emily12345

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jun 7, 2019
Welcome :)


« previous next »
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Evolution of the Sun's luminosity, radius and effective temperature compared to the present Sun Evolution of the Sun's luminosity, radius and effective temperature compared to the present Sun
Many former slaves understood that illiteracy was an implement of bondage. The Freedmen’s Bureau bui Many former slaves understood that illiteracy was an implement of bondage. The Freedmen’s Bureau bui
Maximal Heart Rate Over Time Maximal Heart Rate Over Time
The press surround Chris Ofili's The Holy Virgin Mary at the Brooklyn Museum. The press surround Chris Ofili's The Holy Virgin Mary at the Brooklyn Museum.
Édouard Mane, The Gare Saint-Lazare. Édouard Mane, The Gare Saint-Lazare.
Scientists should use a variety of media to present the message Scientists should use a variety of media to present the message
Video: Exercise and cardiac output

For a complete list of videos, visit our video library