Author Question: You have determined the profitability of a planned project by finding the present value of all the ... (Read 82 times)

moongchi

  • Hero Member
  • *****
  • Posts: 516
You have determined the profitability of a planned project by finding the present value of all the cash flows from that project.
 
  Which of the following would cause the project to look more appealing in terms of the present value of those cash flows?
  A) The discount rate decreases.
  B) The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same.
  C) The discount rate increases.
  D) The cash flows occur over the same time period and total the same amount, but the cash flows are larger toward the end of the project.
  E) The cash flows are extended over a longer period of time and the total amount of the cash flows remains the same, but the cash flows are larger toward the end of the project.

Question 2

Suzanne has identified a project with the following cash flows. What is the present value of the cash flows at time 0 if the interest rate is 17?
 
  Year Cash Flow
  1 2,000
  2 650
  3 375
  4 1,200
 
  A) 3,058.75
  B) 3,578.74
  C) 2,614.32
  D) 4,225.00
  E) 3,521.63



kbennett34

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

For a complete list of videos, visit our video library