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

Author Question: A company is looking to invest in a very risky project. They have a required rate of return of 27% ... (Read 662 times)

dbose

  • Hero Member
  • *****
  • Posts: 597
on: Jun 7, 2019

Question 1

A company has the following net cash inflows. Today -$7000, Year 1 -$15 000, Year 2 -$9000, Year 3 + $12 000, Year 4 -$3000, Year 5 + $19 000. Compute the net present value if the required rate of return is 7.22% compounded annually.
◦ -$3000.00
◦ -$4709.89
◦ $4709.89
◦ -$7409.89
◦ -$7009.89

Question 2

A company is looking to invest in a very risky project. They have a required rate of return of 27% compounded annually. The project has the following cash inflows: Year 1 $17500, Year 2 $15000, Year 3 $27500. It also has the following cash outflows: Immediately -$10 000, Year 1 -$15 000, Year 3 -$9500. What is the NPV?
◦ $9718.06
◦ $7819.06
◦ $7918.06
◦ $9918.06
◦ -$9718.06
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by dbose on Jun 7, 2019

debra928

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 7, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


dbose

  • Hero Member
  • *****
  • Posts: 597
Reply #2 on: Jun 7, 2019
Excellent


debra928

  • Sr. Member
  • ****
  • Posts: 342
Reply #3 on: Jun 7, 2019
Great! Please up vote :D


Mankaran Deol

  • Newbie
  • *
  • Posts: 1
Reply #4 on: Apr 22, 2020
Quote from: dbose on Jun  7, 2019
<p><span class="q_bt">Question 1</span></p>A company has the following net cash inflows. Today -$7000, Year 1 -$15 000, Year 2 -$9000, Year 3 + $12 000, Year 4 -$3000, Year 5 + $19 000. Compute the net present value if the required rate of return is 7.22% compounded annually.<br/>◦ -$3000.00<br/>◦ -$4709.89<br/>◦ $4709.89<br/>◦ -$7409.89<br/>◦ -$7009.89<br/><br/><p><span class="q_bt">Question 2</span></p>A company is looking to invest in a very risky project. They have a required rate of return of 27% compounded annually. The project has the following cash inflows: Year 1 $17500, Year 2 $15000, Year 3 $27500. It also has the following cash outflows: Immediately -$10 000, Year 1 -$15 000, Year 3 -$9500. What is the NPV?<br/>◦ $9718.06<br/>◦ $7819.06<br/>◦ $7918.06<br/>◦ $9918.06<br/>◦ -$9718.06
« previous next »
 

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
Project Management: Achieving Competitive Advantage, 5th Edition Project Management: Achieving Competitive Advantage, 5th Edition
Project Project
A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Video: How does asthma work?And How do you treat asthma?

For a complete list of videos, visit our video library