Question: Solve the following problem. A company is considering a project that will require a cost outlay of $30,000 per year for four years. At the

 Solve the following problem. A company is considering a project that
will require a cost outlay of $30,000 per year for four years.

Solve the following problem. A company is considering a project that will require a cost outlay of $30,000 per year for four years. At the end of the project, the company expects to salvage the physical assets for $30,000. The project is estimated to yield net returns of $60,000 in Year 4, S40,000 in Year 5, and $20,000 for each of the following five years. Alternative investments are available, yielding a rate of return of 14% a) Compute the net present value of the project. (5 marks) b) Compute the rate of return. (5 marks) If there is a positive sign in front of Net Secondary Income for Canada, then Select one: O a Canada exported more services than it imported. O b. the value of Canadian gifts to foreigners was less than foreign gifts to Canadians. O c. Canada imported more commercial financial assets than it exported. O d. Canada had a positive balance of trade. Table 17-2 Balance of Payments $1,000 665 410 Exports of Goods Imports of Goods Exports of Services Imports of Services Net Secondary Income Canadian Capital Going Abroad Capital Coming Into Canada Net Primary Income 590 -25 600 400 10 Refer to Table 17-2. The current account balance is Select one: O a. $140. O b. $155. O c. $170 O d. $45

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