1. You have an opportunity to invest $104,000 now in return for $79,900 in one year...

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1. You have an opportunity to invest $104,000 now in return for $79,900 in one year and $29,100 in two years. If your cost of capital is 9.2%, what is the NPV of this investment? The NPV will be $ 2. Your storage firm has been offered $96,200 in one year to store some goods for one year. Assume your costs are $95,800, payable immediately, and the cost of capital is 8.1%. Should you take the contract? The NPV will be $ (Round to the nearest cent.) Should you take the contract? (Select from the drop-down menu.) The contract (1) — (1) O should not should Marian (1)- (1) O should (Round to the nearest cent.) * 3. Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,440 at the end of each of the next three years. The opportunity requires an initial investment of $1,360 plus an additional investment at the end of the second year of $6,800. What is the NPV of this opportunity if the cost of capital is 1.9% per year? Should Marian take it? What is the NPV of this opportunity if the cost of capital is 1.9% per year? The NPV of this opportunity is $ (Round to the nearest cent.) Should Marian take it? O should not be taken. take this opportunity. (Select from the drop-down menu.) 4. Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.07 million per year. Your upfront setup costs to be ready to produce the part would be $8.11 million. Your discount rate for this contract is 8.3%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is $ What should you do? (Select the best choice below.) million. (Round to two decimal places.) A. The NPV rule says that you should accept the contract because the NPV < 0. B. The NPV rule says that you should accept the contract because the NPV > 0. C. The NPV rule says that you should not accept the contract because the NPV <0. O D. The NPV rule says that you should not accept the contract because the NPV > 0. b. If you take the contract, what will be the change in the value of your firm? If you take the contract, the value added to the firm will be $ million. (Round to two decimal places.) 1. You have an opportunity to invest $104,000 now in return for $79,900 in one year and $29,100 in two years. If your cost of capital is 9.2%, what is the NPV of this investment? The NPV will be $ 2. Your storage firm has been offered $96,200 in one year to store some goods for one year. Assume your costs are $95,800, payable immediately, and the cost of capital is 8.1%. Should you take the contract? The NPV will be $ (Round to the nearest cent.) Should you take the contract? (Select from the drop-down menu.) The contract (1) — (1) O should not should Marian (1)- (1) O should (Round to the nearest cent.) * 3. Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,440 at the end of each of the next three years. The opportunity requires an initial investment of $1,360 plus an additional investment at the end of the second year of $6,800. What is the NPV of this opportunity if the cost of capital is 1.9% per year? Should Marian take it? What is the NPV of this opportunity if the cost of capital is 1.9% per year? The NPV of this opportunity is $ (Round to the nearest cent.) Should Marian take it? O should not be taken. take this opportunity. (Select from the drop-down menu.) 4. Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.07 million per year. Your upfront setup costs to be ready to produce the part would be $8.11 million. Your discount rate for this contract is 8.3%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is $ What should you do? (Select the best choice below.) million. (Round to two decimal places.) A. The NPV rule says that you should accept the contract because the NPV < 0. B. The NPV rule says that you should accept the contract because the NPV > 0. C. The NPV rule says that you should not accept the contract because the NPV <0. O D. The NPV rule says that you should not accept the contract because the NPV > 0. b. If you take the contract, what will be the change in the value of your firm? If you take the contract, the value added to the firm will be $ million. (Round to two decimal places.)

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1 To calculate the NPV of the investment NPV 7990010092 29100100922 104000 NPV 799001092 2910010922 ... View the full answer