Question: Please answer the following question quickly, showing all work accordingly on all sections. Thank you. You have an opportunity to invest $100,000 now in return

Please answer the following question quickly, showing all work accordingly on all sections. Thank you.

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. You have an opportunity to invest $100,000 now in

You have an opportunity to invest $100,000 now in return for $80,200 in one year and $29,200 in two years. If your cost of capital is 8.6%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.) that year? The free cash flows from earnings will be $5 (Round to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. The S\&P 500 index delivered a return of 10%,15%,15%, and 20% over four successive years. What...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. return of 15.05%. The risk-free rate is 3%. You can invest in Bay Corp. and City Inc. How much...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. plus an additional investment at the end of the second year of $5,400. What is the NPV of this...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. Suppose over the next year Ball has a return of 12.9%, Lowes has a return of 22%, and Abbott...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. Suppose you invest $800 in an account paying 7% interest per year. a. What is the balance in the...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. \begin{tabular}{cccccc} Project & Year 0 & Year 1 & Year 2 & Year 3 & Year 4 \\ \hline A & $52 &...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. \begin{tabular}{cccccc} Year 0 & Year 1 & Year 2 & Year 3 & Year 4 & Year 5 \\ \hline$39,400 &...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. Suppose you invested $59 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a...

Please answer the following question quickly, showing all work accordingly on all sections. Thank you. he could earn $8.3 million per year (paid at the end of the year) speaking instead of writing....

Please answer the following question quickly, showing all work accordingly on all sections with all parts. Thank you. Beryl's Iced Tea currently rents a bottling machine for $55,000 per year,...

In the circuit of Figure, let E0 = 12.0 V, R = 3.0 ?, and L = 0.6 H. The switch is closed at time t = 0. From time t = 0 to t = ?, find (a) The total energy that has been supplied by the battery, (b)...

How do you find the standard deviation of a graph

The issue of earnings management has been a concern of the Securities and Exchange Commission ( SEC ) . Provide an explanation as to what is meant by "earnings management." In your answer, consider...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Describe what is meant by collective bargaining and labor relations. page 578

Describe the roles that HRM plays in firms today and the categories of HRM activities. page 664

Identify the labor relations goals of management, labor unions, and society. page 580