Iridium Corp. has spent $ 3.5$3.5 billion over the past decade developing a satellite-based telecommunication system. It is currently trying to decide whether to spend an additional $ 350$350 million on the project. The firm expects that this outlay will finish the project and will generate cash flow of $ 15.0$15.0 million per year over the next 5 years. A competitor has offered $ 450$450 million for the satellites already in orbit. Classify the firm's outlays as sunk costs or opportunity costs, and specify the incremental cash flows.

1. sunk costs : $3.5B is a sunk cost as it is already incurred.

2. opportunity costs: Addl $350M investment for finishing project is an Opportunity cost. However it will yield $15M pa for next 5 Yrs. So PV of this CF is less than $15*5=$75M. SO NPV = CF0+CF1..+CF5 = -350 + Less than 75 = negative.

SO another Opportunity of selling the Satellite for $450 M is a better option.

3. specify the relevant cash flows.

If Addl $350M investment is undertaken, $350M will be Cash outflow in Y0. It will result in Annual CF of $15M for next 5 yrs.

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12