Question: Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 in the three

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 in the three years over which the project will produce cash flows. If the discount rate is 6%, what is the net present value of the project?

A) $11,150

B) $26,930

C) $8,430

D) $1,650

please tell me which one and why?

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!

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $10,000 in the three years over which the project will produce cash flows. If the...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 in the three years over which the project will produce cash flows. If...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $10,000 in the three years over which the project will produce cash flows. If the...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $10,000 in the three years over which the project will produce cash flows. If the...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $10,000 in the three years over which the project will produce cash flows. If the...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $10,000 in the three years over which the project will produce cash flows. If the...

Q:

Stone Inc. is evaluating a project with an initial cost of $ 9 , 5 0 0 . Cash inflows are expected to be $ 1 , 5 0 0 , $ 1 , 5 0 0 and $ 1 0 , 0 0 0 in the three years over which the project will...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $2,000, $2,000 and $12,000 in the three years over which the project will produce cash flows. If the...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,900, $2,600, and $11,000 in the three years over which the project will produce cash flows. If...

Q:

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 in the three years over which the project will produce cash flows. If...

Q:

Suppose that W 1 is a random variable with mean and variance 2 1 and W 2 is a random variable with mean and variance 2 2 . From Example 5.4.3, we know that cW 1 + (1 c)W 2 is an unbiased...

Q:

1. a. Write the first five terms in diagonal 4 of Pascal's triangle using n Cr. b. Write each term in row 9 of Pascal's triangle using Cr. n 2. Use Pascal's method to complete the array: 78 a 286 C...

Q:

Excel Online Structured Activity: TIE ratio required analysis to answer the question below. x Open spreadsheet What is MPI's times - interest - earned ( TIE ) ratio? Round your answer to two decimal...

Q:

Consider the following optimal simplex tableau of a maximization problem of total profit ( $ ) with

Q:

Describe the disciplinary action process.

Q:

Describe transfers, promotions, resignations, and retirements as factors involved in internal employee relations.

Q:

Explain the use of compensation surveys for job pricing and determining market competitive pay structures.