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 87 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?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

For a complete list of videos, visit our video library