Business, 13.07.2020 20:01 shamiyac3

A project that costs $2,000 to install will provide annual cash flows of $510 for the next 5 years. The firm accepts projects with payback periods of less than 4 years. Required:
a. What is this project's payback period?
b. What is project NPV if the discount rate is 3%?
c. What is project NPV if the discount rate is 10%?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 21:20

20. sinclair company's single product has a selling price of $25 per unit. last year the company reported a profit of $20,000 and variable expenses totaling $180,000. the product has a 40% contribution margin ratio. because of competition, sinclair company will be forced in the current year to reduce its selling price by $2 per unit. how many units must be sold in the current year to earn the same profit as was earned last year? a. 15,000 units b. 12,000 units c. 16,500 units d. 12,960 units

Answers: 1

Answer

Business, 22.06.2019 17:30

Dr. sperry, a biologist, is using excel to track growth rates of different populations of bacteria. she has a very complex formula in one cell. it begins with “round”. dr. sperry would like to see exactly how excel’s calculation reached the final rounded value that she sees in the cell. what could dr. sperry do to best understand how the calculation was made? try different formulas on her own until she reaches the value shown in excel click on the evaluate formula button in the formulas tab and then click “step in” select the cell and then look at the formula in the formula field of the ribbon remove “round” from the formula in order to see the actual value before rounding

Answers: 2

Answer

Business, 22.06.2019 20:00

A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?

Answers: 2

Answer

Business, 22.06.2019 23:30

What are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop.

Answers: 1

Answer

You know the right answer?

A project that costs $2,000 to install will provide annual cash flows of $510 for the next 5 years....

Questions