Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type is 11.25%. What is the investment's net present value

Answers

Answer 1

Based on the information given the investment's net present value is $192,369.06.

Using this formula

Net Present Value(NPV)=-Initial cost+ Cash flow during time period/(Discount rate+ Cash flow time)

Let plug in the formula

NPV=-920,000+450,000÷(1+0.1125)^1+270,000÷(1+0.1125)^2+270,000÷(1+0.1125)^3+200,000÷(1+0.1125)^4

NPV=-920,000+450,000÷(1.1125)^1+270,000÷(1.1125)^2+270,000÷(1.1125)^3+200,000÷(1.1125)^4

NPV=$192,369.06

Inconclusion the investment's net present value is $192,369.06.

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Related Questions

What economic goal does the Securities and Exchange Commission (SEC) help the government achieve the most

Answers

Answer: promote economic prosperity

Explanation:

what famous type of cryptocurrency was recently valued at more than $64,000 per unit, though its value has fluctuated wildly in the past?

Answers

The famous cryptocurrency that was recently valued at the staggering amount of $64,000 is Bitcoin.

Bitcoin:

Is the most popular cryptocurrency there is Has had its value fluctuate wildly in the past Was recently valued at $64,000.

Bitcoin was the first cryptocurrency and has seen its value change wildly in the past due solely to the forces of supply and demand. It is however going strong at the moment.

In conclusion, the crypto described is Bitcoin.

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Explain how the forms of demand supply will eliminate a market surplus

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Answer and Explanation: 1

Answer and Explanation: 1A market surplus is when the quantity supplied of a good is greater than the quantity demanded. We can also say there is excess supply. This happens at a certain price that is above the market equilibrium which causes more of a product to be supplied than consumers are willing to buy. It is the opposite of a shortage.

Answer and Explanation: 1A market surplus is when the quantity supplied of a good is greater than the quantity demanded. We can also say there is excess supply. This happens at a certain price that is above the market equilibrium which causes more of a product to be supplied than consumers are willing to buy. It is the opposite of a shortage.The market attempts to resolve the surplus by pushing the price down until it is at its equilibrium. A lower price will reduce the quantity supplied and increase the quantity demanded.

make me brainless pls pls pls pls pls

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i need one more brainliest to level up I feel it TwT

Answer: I can't but I can give you the fact that you cannot get brainliest by asking that.

Explanation:

I am new to this, could anyone help me, I am from Peru and I do not endorse anything they tell me, someone could explain to me how this font is used and if you could guide me and be my friend to help me, I would appreciate a heap

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Answer:
Okay no problem

Managers should expect to encounter criticisms, disagreements, and other on-the-job conflicts regularly. true flase

Answers

Answer:. True

Explanation:I just finished this test and got it right.

Managers should expect to encounter criticism, disagreements and other on the job conflicts to avoid clash between employees.

What is on job conflict?

On job conflict is a conflict in which the two employees disagree at some point in a work place. There can be healthy conflict which can bring new ideas to help the company grow and reach its objectives, however the manager should closely monitor on the job conflicts between employees and should try to resolve them immediately.

Therefore the statement is True

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you manage the worksheet shown below that contains a list of employees and a list of building numbers. the employee list is 1500 rows of data. what is the easiest way to sort the employee list without affecting the building number list?

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The easiest way to sort the employee list without affecting the building number list is by using the data sort function.

There are several programs for creating tables and managing data. One of them is Microsoft Excel, in this program, you can integrate, manage, organize, save and modify data.

In the situation where I manage a list of employees and a list of building numbers of about 1500 data and I need to organize them without affecting the other lists, I must follow the following steps.

Select the list that I want to organize, for example, column B.I click on the data option and then on the order option. At that moment, a warning will appear telling you that I have more data in my table (in this case the list of building numbers) and it will ask if I want to include it in the organized action.I mark the option to Continue with the current selection and I give it to order.At this moment another window opens where they give me different options to organize my data, for example alphabetically from A to Z or from Z to A, or I can customize it.Subsequently, I give it order and the list organizes the data as I wish.

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adding value to products and services sold to consumers in households for their personal or family use is known as

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Based on business and marketing relations, adding value to products and services sold to consumers in households for personal or family use is known as "Retailing."

This is because retailing is part of a business or marketing process that involves selling the products or commodities to final consumers.

Usually, retailing services involve the sales of products and services to add value to the final consumers.

For example, free delivery, making tomatoes and peppers into salsa, etc.

Hence, in this case, it is concluded that the correct answer is "Retailing."

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ABC purchased $500 of merchandise on account. ABC's journal entry to record this transaction includes a ______.

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If ABC purchased $500 of merchandise on account. ABC's journal entry to record this transaction includes a:

Debit to Inventory of $500

Credit to Accounts Payable of $500.

Based on the information given if the company purchased merchandise of the amount of $500 on account, the appropriate journal entry to record this transaction is:

ABC journal entry

Debit to Inventory of $500

Credit to Accounts Payable of $500

(To record merchandise on account)

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What u.s. city, whose inflation rate recently measured 7.9 percent, has the highest such rate in the nation?

Answers

Answer: Atlanta

Explanation:

CNN 10 goes over this.

Why should the ar grazing system be good in the profession of farming or domesticating the goats or sheep.DISCUSS.​

Answers

Answer:

the point of the grazing system is to

allow vegetation and soil a resting time to recover, and sometimes also to improve vegetation conditions so this will be good for goat and sheep because they will have more grass

does anybody know this \
Mark the statement that is NOT true.

The president is also known as the chief executive.
The executive department is divided into 15 divisions.
The executive branch mainly enforces federal laws.
The president is also known as the chief of state.
The "Beltway mentality" is a desired goal of every presidential administration.

Answers

Answer:

False

the first one, option A

Beltway mentality NOT true.

what is the relationship between the average inventory and the in-stock probability?

Answers

Answer:

the relationship is that the more inventory there is the higher the stock-in probability

Retailing includes all activities involved in the: _______________

a. selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use.
b. selling of tangible products to ultimate consumers for personal, family, or household use.
c. selling of tangible products to ultimate consumers for personal, household, or industrial use.
d. selling, renting, leasing, or reselling of products and services to ultimate consumers or small industrial users.
e. selling, renting, and providing of products and services without retaining the title to these offerings.

Answers

Retailing includes all activities involved in the: selling of tangible products to ultimate consumers for personal, family, or household use.

There are two major middlemen in the distribution of products:

Wholesale: This is a middleman who buys directly from the producer in large quantity and sells to retailers in small quantity.

Retail: The retailers buys in small quantity from the wholesaler and sells in units quantities to the final consumers. The retailer is the closest to the consumer in the distribution chain and he gives information about a product to the consumer.

Therefore, the retailers sells to consumers who use a product for personal or household use.

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Retailing includes all activities involved in the:  a. selling, renting, and providing of products and services to ultimate consumers for personal, family, or household use.

Retailing refers to the act of selling products and services for the consumption of the final consumers. There is no reselling of the products at this stage.

The consumer uses the products and services for his personal benefit. Therefore, option A is correct.

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Needs for operating funds include ______. (Select all that apply) Multiple select question. controlling credit operations increases in stock price acquiring needed inventory making capital expenditures

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Operational fund needs are simply known to be the amount one needs to keep current asset investments afloat. Needs for operating funds includes;

Making capital expendituresAcquiring needed inventoryControlling credit operations

Companies often create their production cycle using control criterion that is affected by inventories, customer loans and basic cash needs.

Operating funds is used by firms to finance their purchasing program. The Key components to financial sustainability are;

Access to CapitalProfitability ReportingPlanning

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In a statement of cash flows, the sum of cash inflows and outflows is equal to:

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When in the statement of cashflows, the cash inflows and the outflows are added, the result is the change in the cash balance.

The statement of cashflows shows the movement of cash in a company and how much cash the company is left with at the end of the period.

The statement includes:

Cash outflows which are deductions Cash inflows which bring in money

Cash outflows are denoted in negatives and when added to cash inflows, show the change in the cash that the company has / its balance.

In conclusion, adding the cash inflows and outflows shows the change in cash.

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The Pirates of Penzance Company delivers goods to various areas around the world. The company has a great reputation for being prompt on its deliveries. Blackbeard is the owner of the company. Davy Jones works for Blackbeard as an underpaid sailor. Davy knew that Blackbeard loved to read while they were transporting their deliveries and that his favorite book was The Adventures of Huckleberry Finn. Davy gave Blackbeard a valuable first edition of Twain's work hoping that Blackbeard would give him a raise in pay. A day later, Blackbeard promised to give Davy a pay raise of 18% because he was very pleased with the book. The following week when Davy received his check, he noticed that the raise was missing and he asked Blackbeard for the money. Blackbeard refused to give him his raise and Davy filed suit. Decide the outcome.

Answers

The outcome here is that the court would make blackbeard to give the pay raise that he promised to Davy.

The breach of promise.

Davy may decide to sue because there has been a breach here. He may decide to sue under the proprietary estoppel.

He already met with what was required of him by providing the book to Blackbeard. It was Blackbeard that was unable tyo meet up with his own part.

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Lanie tells her sales manager that she will be devoting more effort to ____ in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan.

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Lanie tells her sales manager that she will be devoting more effort to prospecting in the coming weeks, as her list of potential customers has dwindled below the level of 30 firms recommended by the selling plan.

Prospecting in sales is when a potential customer is being targeted before converting to an opportunity. It is the first step in sales process which entails creating sales opportunities.

Every businesses, firms, organizations usually have what is called selling plan, which is a tool in helping business succeed in sales. It helps to benchmark where an organization is and where they wish to be and then make adjustments to achieve their goals.

The selling plan is what will guide Lanie so that she would be able to achieve her sales prospect and then possibly convert them to opportunities inorder to meet her target.

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According to cisco, what was considered the inflection point for the internet of things?

Answers

Based on the information released at the IoT World Forum in Dubai, according to Cisco, the thing that was considered the inflection point for the internet of things is "Strategic."

Cisco described the inflection point through its Executive Chairman, John Chambers.

John Chambers claimed that the inflection point is the strategic significance for the IoT in terms of interest and initiates.

Hence, in this case, it is concluded that the correct answer is "Strategic."

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A 40-year old taxpayer has owned a Roth IRA for more than 5 years. A $10,000 distribution will be considered nonqualified if the distribution was ______.

Answers

Answer:

Your answer would be , ''used to pay for higher education expenses''

Explanation:

A company’s value is also known as their what?

Answers

Answer:

Enterprise Value.

Explanation:

Also known as the AV, the enterprise value is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. The market capitalization of a company is simply its share price multiplied by the number of shares a company has outstanding.

What is the allowance provided to an employee (salon manager) in charge for a full week?

Answers

Answer:

$44.98 per week

Explanation:

This allowance is based on a working condition or a disability as part of working a shift.

For a corporation, equity capital is obtained from a. banks. b. stockholders. c. bondholders. d. credit unions. e. insurance companies.

Answers

All I remember is external investors so maybe stockholders, hope this helps

can you send me answer .
please send me fast...​

Answers

Answer:

all you have to do is search up the defenitions

Explanation:

if you save $2 per day for a year how much will you have by the end of one year?​

Answers

Answer:

1 day = 2$

1 year = 365 days

365 x 2 = 730.

will have 730$ by the end of an year

Answer:

$730

Explanation:

Bank assets tend to have _____________ maturities and _____________ liquidity than/as bank liabilities. A. Longer; greater B. Longer; lower C. Shorter; lower

Answers

The answer is *B* Longer,Lower.

Background information: This excerpt describes the United States’ use of economic sanctions against Sudan. It was created by the US Department of the Treasury. According to this text, what action can you assume Executive Order 13067 took? It supplied economic and military aid to the government of Sudan. It imposed trade restrictions on Sudan. It developed a free trade agreement between the United States and Sudan. It created diplomatic relations between the United States and Sudan.

Answers

Answer: it imposed trade restrictions on Sudan

Explanation: Sudan was out of control with violating human rights/international terrorism, so the US limited their power by imposing trade restrictions

According to this document, Executive Order 13067 took the action of developing a free trade agreement between the United States and Sudan. Thus, option B is correct.

What is the Executive Order?

The Executive Orders (EOs) are formal papers through which the President of the United States administers the Federal Government's activities. The orders cite the President's constitutional and statutory powers.

The White House issues Executive Orders, which are used to command the Executive Branch of the United States Government. Executive Orders provide required requirements for the Executive Branch and have legal force.

Therefore, option B is correct, that the executive order imposed trade restrictions on Sudan.

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Because the amount paid is linked to certain predefined behaviors or outcomes, ______ is specifically designed to energize, direct, or maintain employees' behavior.

Answers

Answer:

Umomgey

Explanation:

Based on the amound paid by the FKSA, you will be able to govern an employees relations and beahviors.

Incentive pay  is specifically designed to energize, direct, or maintain employees' behavior.

What is Incentive pay  ?

Performance-based compensation known as incentive pay pays an employee for achieving predetermined goals or objectives. This payment may be made in the form of cash, stocks, extra paid time off, gifts, etc.

Instead of paying for the amount of hours worked, incentive pay is a monetary reward for achievement. The theory is that the possibility of cash reward will encourage the employee to meet specific performance goals or financial targets.

The basic goal of incentives is to tightly link employee rewards to their accomplishments. By offering greater remuneration for superior performance, this tie is achieved. Individuals will typically work harder because their performance depends on producing more and getting more rewards.

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describe the benefits of having an electronic resume

Answers

Answer:

Online resumes offer more flexibility and room for creativity than their printed counterparts. Here are just a few benefits of using an online resume service: Undoubtedly, some of your skills and prior experiences are more relevant to some jobs/companies than others.

Explanation:

hope it helps

What other options does an employer have other than terminating an employee?

Answers

Anything Something as simple as moving the employee to another position, altering their current position, or providing continued learning to build their skill set could resolve the issue. It may sound simple, but sitting down with your employee to discuss an issue of poor performance could be enough to change their course.
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