A project has the following cash flows: Period 0 Negative $100,000 Period 1 Positive $75,000 Period 2
Question:
A project has the following cash flows:
Period 0 Negative $100,000
Period 1 Positive $75,000
Period 2 Positive $50,000
Period 3 Positive $75,000
The firm has to pay 8% on its capital funds. What is the value of this stream of cash flows?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (7 reviews)
The NPV can be calculated using the formula NPV CF1 1 r1 CF2 1 r2 CF3 1 r...View the full answer
Answered By
BillClinton Muguai
I have been a tutor for the past 5 years. I have experience working with students in a variety of subject areas, including computer science, math, science, English, and history. I have also worked with students of all ages, from elementary school to college. In addition to my tutoring experience, I have a degree in education from a top university. This has given me a strong foundation in child development and learning theories, which I use to inform my tutoring practices.
I am patient and adaptable, and I work to create a positive and supportive learning environment for my students. I believe that all students have the ability to succeed, and it is my job to help them find and develop their strengths. I am confident in my ability to tutor students and help them achieve their academic goals.
0.00
0 Reviews
10+ Question Solved
Related Book For
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
Question Posted:
Students also viewed these Business questions
-
A project has the following cash flows: Period 0 Negative $75,000 Period 1 Positive $50,000 Period 2 Positive $25,000 Period 3 Positive $30,000 The firm has to pay 9% on its capital funds. What is...
-
A project has the following cash flows: This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 10%, and its MIRR is 14.14%. What is the Year 2...
-
A project has the following cash flows: Year _________________Cash Flow 0 .......................... $53,000 1 .......................... -29,000 2 .......................... -37,000 What is the IRR...
-
In Exercises determine whether the statement is true or false. If it is false, explain why or give an example that shows it is false. The curve represented by the parametric equations x = t and y =...
-
Martha Millon, financial manager of Fish & Chips Inc., is facing a dilemma. The firm was founded 5 years ago to develop a new fast-food concept; and although Fish & Chips has done well, the firms...
-
When personal taxes on interest income and bankruptcy costs are considered, the general expression for the value of a levered firm in a world in which the tax rate on equity distributions equals zero...
-
Draw an energy diagram for the cart in Figure 9.2 \(b\). Figure 9.2 The work done on a system is positive if the system gains kinetic energy and negative if the system loses kinetic energy. (a) Cart...
-
(Restructure of Note under Different Circumstances) Halvor Corporation is having financial difficulty and therefore has asked Frontenac National Bank to restructure its $5 million note outstanding....
-
In a high-profile criminal trial, the defendant alleges that their confession was coerced by law enforcement officers during interrogation. How might the court assess the admissibility of the...
-
Ming Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, the April 9 sale consisted of 8 units from...
-
Peterson Industries has three potential projects it could invest in for the coming year. Finances are tight, so it needs to choose the projects with the greatest benefit for the company. The companys...
-
What are the benefits of decentralization?
-
Define the following terms: a. Unrealized profits b. Upstream sales c. Downstream sales d. One-line consolidation e. Equity pick-up of earnings f. Goodwill impairment test g-. Reporting unit
-
Why is affirmative action such a controversial issue? Is society better served with or without affirmative action? In small groups, take a position either in favor of or against affirmative action...
-
Indirect costs must be allocated to assign them to activities that caused them to be incurred. A significant indirect cost in Health Services organizations is the cost of Financial Services. To...
-
Below is estimated model of market values of houses Market Values-47331.38-825.161 House Age +40.91107 Square Feet a. Refer to the estimated model. Are the impacts of "House Age" and "Square Feet"...
-
You have gathered the following vehicle costs: Vehicle Costs Annual depreciation Current year's loan interest Insurance License and registration fees Parking and tolls Annual mileage Miles per gallon...
-
Why is science an important subject for us to study? How has science improved our lives? what is products and services?
-
A 58-kg astronaut is in space, far from any objects that would exert a significant gravitational force on him. He would like to move toward his spaceship, but his jet pack is not functioning. He...
-
Give an example of transitory income. What effect does this income have on the marginal propensity to consume?
-
Mike and Linda are a married couple who file jointly. They have three dependent children who are full-time students in 2017. Mike and Lindas taxable income is $180,000 and they provided $8,000 of...
-
Georgia, a single taxpayer, operates a business that produces $100,000 of income before any amounts are paid to her. She has no dependents and no other income. She has itemized deductions of $18,000....
-
In 2017, Lana, a single taxpayer with AGI of $85,400, claims exemptions for three dependent children, all under age 17. What is the amount of her child credit?
-
contemplates different ways of defining democracy and brings together ideas from ancient political theory and modern American politics
-
What is the deflection (displacement) of the car when the train is at rest (x1=0) for k=1 (N/m).c. What is the velocity of the car when the train is at rest (x1=0) for k= 1 (N/m).d. What is the...
-
Calculate the required shell outside radius of an exchanger shell, operating at 500C, with P= 19MPa, R=17 cm(before adding corrosion allowance), S=26.5 MPa, and E=0.85. The design requires a...
Study smarter with the SolutionInn App