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 100 times)

mpobi80

  • Hero Member
  • *****
  • Posts: 519
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

  • Sr. Member
  • ****
  • Posts: 321
Answer to Question 1

A

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

For a complete list of videos, visit our video library