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

Author Question: A firm must spend 10 million today on a project that is expected to bring in annual revenues of 1.5 ... (Read 88 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
on: Jul 1, 2018
A firm must spend 10 million today on a project that is expected to bring in annual revenues of 1.5 million for the next 10 years (beginning at the end of year 1).
 
  a. If the firm's cost of capital is 5, what is the NPV of this project?
  b. If the firm's cost of capital is 10, what is the NPV of this project?
  c. What is the internal rate of return?

Question 2

The North American Free Trade Agreement is an example of
 
  A) a beggar-thy-neighbor trade policy.
  B) a preferential trade arrangement.
  C) a multinational quota system.
  D) a general agreement on tariffs and trade.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mbcrismon

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 1, 2018
Answer to Question 1

a. Present value of the revenues = 11.58 million, so NPV = 1.58 million.
b. Present value of the revenues = 9.22 million, so NPV = -0.78 million.
c. 8.15

Answer to Question 2

B


sabina

  • Member
  • Posts: 563
Reply 2 on: Jul 1, 2018
:D TYSM

AmberC1996

  • Member
  • Posts: 317
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Middle adulthood can bring large-scale changes in lifestyle and interests, as illustrated by this ph Middle adulthood can bring large-scale changes in lifestyle and interests, as illustrated by this ph
A mound of buffalo skulls. In 1870 an estimated 30 million buffalo roamed the plains; by 1900 there A mound of buffalo skulls. In 1870 an estimated 30 million buffalo roamed the plains; by 1900 there
Luna Park at Coney Island was a vast living theater in which strollers were both spectators and acto Luna Park at Coney Island was a vast living theater in which strollers were both spectators and acto
Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact. Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact.
The expected results of two generations of semiconservative replication The expected results of two generations of semiconservative replication
Earth 150 Million Years Ago Earth 150 Million Years Ago
Video: Digestive System Animation

For a complete list of videos, visit our video library