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Author Question: What is the NPV for a project if its cost of capital is 12 percent and its initial after-tax cost is ... (Read 85 times)

mpobi80

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on: Jul 10, 2018
What is the NPV for a project if its cost of capital is 12 percent and its initial after-tax cost is 5,000,000 and it is expected to provide after-tax operating cash flows of 1,800,000 in year 1,
 
  1,900,000 in year 2, 1,700,000 in year 3, and (1,300,000 ) in year 4?
  A) -1,494,336
  B) 158,011
  C) -158,011
  D) 3,505,664

Question 2

Allocation of the historic costs of fixed assets against the annual revenue they generate is called ________.
 
  A) arbitraging
  B) securitization
  C) depreciation
  D) amortization


memslove

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

C


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mpobi80

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Reply #2 on: Jul 10, 2018
Correct answers!


memslove

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Reply #3 on: Jul 10, 2018
Great! Please up vote :D


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