This topic contains a solution. Click here to go to the answer

Author Question: A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next ... (Read 8 times)

Mollykgkg

  • Hero Member
  • *****
  • Posts: 529

Question 1

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5%, the net present value of this investment is
◦ impossible to calculate, because no interest rate is given.
◦ greater than $80,000.
◦ less than $30,000.
◦ impossible to calculate, because variable costs are not known.
◦ greater than $130,000.

Question 2

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5%, the net present value of this investment is approximately
◦ $70,920.
◦ $20,920.
◦ $106,990.
◦ $26,160.
◦ $49,840.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Mollykgkg on Dec 3, 2019

cegalasso

  • Sr. Member
  • ****
  • Posts: 295
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 25% of students answer this correctly




Mollykgkg

  • Member
  • Posts: 529
Reply 2 on: Dec 3, 2019
Wow, this really help


daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

For a complete list of videos, visit our video library