Question: The net present value (NPV): You are expecting to earn BD 10,000 in year (one) from your gym, 20% is the minimum desired rate of

The net present value (NPV): You are expecting to earn BD 10,000 in year (one) from your gym, 20% is the minimum desired rate of return so you divide by 1.2, then minus initial cash investment which is the amount invested BD20,000 what you have invested. NPV = (10,000/ 1.2) - 20,000 = Today's value of the expected cash flows Today's value of invested cash is =

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!

XYZ Inc is a Canadian Controlled private corporation. The company's controller has prepared an income statement for the year for the company(the amounts shown do not include any applicable HST): XYZ...

Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $100,000 with a $9,000 residual...

1. (TCO 4) Assumptions underlying cost-volume-profit analysis include all of the following, except: (Points : 5) all costs can be divided into fixed and variable elements. total variable costs are...

1. (TCO 3) The Mixing Department is the third department in the MZS Inc. factory. During January, there were 4,000 units of beginning inventory in the Mixing Department, and 80,000 units were...

QUESTION 1 20 Marks (36 minutes) A company is considering which of two mutually exclusive projects it should undertake. The finance director thinks that the project with the higher (Net present...

Question Help P26-31A (similar to) Leches Company operates a chain of sandwich shops. (Click the icon to view additional information) Read the requirements Click the icon to view Present Value of $1...

Please process at your earliest convenience. I have enclosed the attached document and other required documents. Thank you for your help! Consider how Kyler Valley Spring Park Lodge could use capital...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

Remaining Time: 1 hour, 59 minutes, 02 seconds. Question Completion Status: QUESTION 1 A firm is analysing its cash budget for june. Assuming its total cash receipts is $1170 and cash expenses is...

Accounting Excel Project , Please see Acct-Excel Project Direction.doc Accounting Excel Group Project Directions - Kayla and Zhejia have always wanted to start their own consulting firm. Kayla and...

5 calculation questions, 5 concept questions. Prefer answers in word format. MGMT 613 - Financial Management Module 10 Questions 1. LTC and NPV are two methods for valuating a long term capital...

A company paid $0.50 in cash dividends per share.Its earnings per share is $4.22 and its market price per share is $29.75.Its dividend yield is equal (Round your answer to 2 decimal places . ) :...

Using the trial balance on the provided excel workbook for your company Almost Done Corporation, calculate and present all 4 of the required financial statements: Balance sheet showing 2011 and 2012...

Arial 1 2 A B I U ? % AlignmenNumber Conditiona Format Cell Formattingas Table Styles Font Styles B C D E F G H J What is the NPV of the following cash flows at a discount rate of zero percent? What...

On June 3, Sheridan Company sold to Chester Company merchandise having a sale price of $5,600 with terms of 3/10, n/60, f.o.b. shipping point. An invoice totaling $95, terms n/30, was received by...