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 634 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 average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

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?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Primary production is positively correlated with the evapotranspiration rate. Primary production is positively correlated with the evapotranspiration rate.
Exercise increases the heart rate. Exercise increases the heart rate.
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
calculate the quantities required to make 5 lb of hydrophilic ointment: calculate the quantities required to make 5 lb of hydrophilic ointment:
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Introduction to Dysrhythmia

For a complete list of videos, visit our video library