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 658 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?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Saint-Usuge Spaniel Saint-Usuge Spaniel
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
Temperature Changes on Heart Rate Temperature Changes on Heart Rate
Respiratory Rate Ranges of Various Age Groups Respiratory Rate Ranges of Various Age Groups
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Segmentation and migrating motility complexes & Gastroileal reflex

For a complete list of videos, visit our video library