An investment will require a $1.0 million cash outlay. It will generate perpetual net cash inflows of
Question:
An investment will require a $1.0 million cash outlay. It will generate perpetual net cash inflows of $115,000 a year. Investors could earn 9 percent elsewhere by taking the same risk. Will this investment generate an economic profit?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (22 reviews)
Cash outlay 1000000 Net Cash inf...View the full answer
Answered By
WAHIDUL HAQUE
hello,
I'm a professional academic solution provider working as a freelance academic solution provider since 7 years. I have completed numerous projects. Help lots of students to get good marks in their exams and quizzes. I can provide any type of academic help to your homework, classwork etc, if you are a student of Accounting, Finance, Economics, Statistics. I believe in satisfying client by my work quality, rather than making one-time profit. I charge reasonable so that we make good long term relationship. why will you choose me? i am an extremely passionate, boldly honest, ethically driven and pro-active contractor that holds each of my clients in high regards throughout all my business relations. in addition, I'll always make sure that I'm giving my 100% better in every work that will be entrusted to me to be able to produce an outcome that will meet my client's standards. so if you are a student that is now reading my profile and considering me for your academic help. please feel free to look through my working history, feedback and contact me if you see or read something that interests you. I appreciate your time and consideration.
regards
4.90+
233+ Reviews
368+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
An investment requires an outlay of $100,000 today. Cash inflows from the investment are expected to be $40,000 per year at the end of years 4, 5, 6, 7, and 8. If you require a 20 percent rate of...
-
An investment of $100,000 is expected to generate cash inflows of $60,000 in one year and $79,350 in two years. Calculate the expected rate of return on this investment to the nearest whole percent.
-
An investment fund has $ 1 million in cash and $ 9 million invested in securities. It currently has 1 million shares out-standing. a. What is the NAV of this fund? b. Assume that some of the...
-
Solve Prob. 410 using singularity functions. Use statics to determine the reactions. Prob. 410, The figure shows a cantilever consisting of steel angles size 100 Ã 100 Ã 12 mm mounted...
-
Draw the Lewis structure for the BeCl42- ion. Predict its geometry and describe the hybridization state of the Be atom?
-
Define the time constant.
-
State the steps in the audit program for testing sales transactions in a manual system that pertain to the use of a random sample.
-
Today is September 16, Year 2. You, CPA, work for Garcia & Garcia LLP, a medium-sized firm located in Montreal. Jules Garcia calls you into his office. "CPA, I have a very special engagement for you....
-
You have a Microsoft 365 E5 subscription that contains an eDiscovery case named Case1. You create a search job in Case1. You need to download the exported search results. How long are the search...
-
Rylon Corporation manufactures Brute cologne and Chanelle perfume. The raw material needed to manufacture each type of fragrance can be purchased for $60 per pound. Processing 1 pound of raw material...
-
A commercial paper note with $1 million par value and maturing in 60 days has an expected discount return (DR) at maturity of 6 percent. What was its purchase price? What is this note's expected...
-
A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of $400,000 a year. Investors could expect to earn 8 percent elsewhere while taking the same risk. Will...
-
A Snapshot in USA Today shows that 60% of consumers say they have become more conservative spenders. When asked "What would you do first if you won $1 million tomorrow?" the answers had to do with...
-
Berdine has a basis of $32,000 in her partnership interest and receives land with an adjusted basis to the partnership of $78,000 in termination of her interest. [Assume the partnership holds no hot...
-
Solve the equation. 2z+3z-27=0
-
Divide. 36 x6 16vx - 18vx 25 2vx Simplify your answer as much as possible.
-
1) What is CSS? 2) Advantages of CSS? 3) Disadvantages of CSS? 4) Different types of CSS? 5) Limitations of CSS? 6) What is CSS framework? 7) How to declare units in CSS? 8) How to include CSS in a...
-
when conducting a workplace investigation into alleged discrimination, what are important points to remember?
-
Keuka Park Savings and Loan currently has one drive-up teller window. Cars arrive at a mean rate of 10 per hour. The mean service rate is 12 cars per hour. Use the Single Server Queue Excel template...
-
Planning: Creating an Audience Profile; Collaboration: Team Projects. Compare the Facebook pages of three companies in the same industry. Analyze the content on all available tabs. What can you...
-
What are the general features of preferred stock?
-
How much does Reitmans report for trade and other payables on its January 28, 2012? Who does Reitmans owe money to? Describe the circumstances that explain why money would be owed to these entities.
-
In February 2017, Maria Osgood invested an additional $10,000 in her business, Osgoods Pharmacy, which is organized as a proprietorship. Osgoods accountant, Carl Sota, recorded this receipt as an...
-
At the beginning of the year, Gilles Company had total assets of $800,000 and total liabilities of $300,000. Answer the following questions. (a) If total assets increased $150,000 during the year and...
-
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs...
-
Apply the CYK algorithm on the given CFG to accept the word baaa. S-> AB | BC A -> BA | a B-> CC | b C -> AB | a
-
7. (6 points) Draw the corresponding deterministic finite state machine. 52 0 So 1 0, 1 S1 1 1 S3 0
Study smarter with the SolutionInn App