Business, 12.04.2021 20:00 destmacklin
You are deciding between two mutually exclusive investment opportunities. both require the same initial investment of $ 10.1 million. investment a will generate $ 1.97 million per year (starting at the end of the first year) in perpetuity. investment b will generate $ 1.58 million at the end of the first year, and its revenues will grow at 2.9 % per year for every year after that.
a. which investment has the higher irr?
b. which investment has the higher npv when the cost of capital is 5.2 %?
c. in this case, for what values of the cost of capital does picking the higher irr give the correct answer as to which investment is the best opportunity?
Answers: 3
Business, 21.06.2019 20:20
Molander corporation is a distributor of a sun umbrella used at resort hotels. data concerning the next month’s budget appear below: selling price per unit $ 29 variable expense per unit $ 14 fixed expense per month $ 12,450 unit sales per month 980 required: 1. what is the company’s margin of safety? (do not round intermediate calculations.) 2. what is the company’s margin of safety as a percentage of its sales? (round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.
Answers: 3
Business, 22.06.2019 00:00
If his parents cannot alex with college, and two of his scholarships will be awarded to other students if he does not accept them immediately, which is the best option for him?
Answers: 1
Business, 22.06.2019 02:20
Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a
Answers: 2
Business, 22.06.2019 14:20
Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?
Answers: 1
You are deciding between two mutually exclusive investment opportunities. both require the same init...
Computers and Technology, 18.12.2020 18:50
Mathematics, 18.12.2020 18:50
Chemistry, 18.12.2020 18:50
Mathematics, 18.12.2020 18:50
Mathematics, 18.12.2020 18:50
Mathematics, 18.12.2020 18:50
Mathematics, 18.12.2020 18:50
English, 18.12.2020 18:50
Mathematics, 18.12.2020 18:50
Advanced Placement (AP), 18.12.2020 18:50
Mathematics, 18.12.2020 18:50