1 answer

A company must decide if a proposed project is financially justifiable. To help make this decision, the company just spe...

Question:

A company must decide if a proposed project is financially justifiable. To help make this decision, the company just spent $8 million dollars. If the company goes ahead with this project, it must immediately spend another $150 million now, and then spend $30 million in one year. In two years, it will receive $90 million, and in three years it will receive $110 million. If the cost of capital for the project is 11%:

The project's NPV is:

A) -$32,082

B) -$23,550

C) $10,085


Answers

B.) -$23.550.

present value factor = 1 /(1+r)^n

here, r = 11%%=>0.11.

n= 0,1,2,3.

year cash flow present value factor (1/(1.11)) cash flow * present value factor
0 (150) 1 (150)
1 (30) 1/(1.11)^1=>0.9009 (30*0.9009)=>(27.027)
2 90 1/(1.11)^2=>0.8116 90*0.8116=>73.044
3 110 1/(1.11)^3=>0.7312 110*0.7312=>80.432
NPV (23.551) i.e approximately (23.550)
.

Similar Solved Questions

1 answer
Collaborations Here is the income statement for Larkspur, Inc WileyPLUS Support LARKSPUR, INC. Income Statement For...
Collaborations Here is the income statement for Larkspur, Inc WileyPLUS Support LARKSPUR, INC. Income Statement For the Year Ended December 31, 2017 Sales revenue $405,300 204.000 Cost of goods sold Gross profit 201,300 Expenses (including $11,200 interest and $27,300 Income taxes) 94,400 Net Income...
1 answer
Those are  JAVA Programs. Please write them in recursions , it requires the methods have to be...
Those are  JAVA Programs. Please write them in recursions , it requires the methods have to be recursive(I understood how to write them by using for loop). Please don't use any syntax beyond chapter of Recursion. I only covered the materials to recursions and the materials before recur...
1 answer
Hi may I get help with explanation? Thank you A 133 kg object and a 640...
Hi may I get help with explanation? Thank you A 133 kg object and a 640 kg are separated by 0.735 m. Find the magnitude of the net gravitational force exerted by these objects on a 42.0 kg object placed midway between them. Submit Answer Tries 0/6 At an infinitely remote distance, the net gravitatio...
1 answer
Announced that all future dividends will be increased by 3.8 percent annually. What is one share...
announced that all future dividends will be increased by 3.8 percent annually. What is one share of this stock worth to you if you require a 15 percent rate of retum Chef, Inc. just paid its annual dividend of $1.44 a share. The firm recently A. $12.56 B. $12.86 C. $13.35 D. $13.68 E. $14.07 11. Jup...
1 answer
Required information The following information applies to the questions displayed below.) Jacob is a member of...
Required information The following information applies to the questions displayed below.) Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $130,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is su...
1 answer
If f(x) varies directly with x and f(x) = 24 when x = –4, then what is f(x) when x = 12?
If f(x) varies directly with x and f(x) = 24 when x = –4, then what is f(x) when x = 12?...
1 answer
To produce batteries, a manufacturer uses x units of chemical A and y units of chemical...
To produce batteries, a manufacturer uses x units of chemical A and y units of chemical B. The amount P of pollution washed into the cleaning water is given by the pollution function P(x, y) = 0.05x2 +0.009xy +0.07y2 If the company is currently using 10 units of chemical A and 19 units of chemical B...
1 answer
Voltage Measurements From a Home Home Home Home VO Home Full Day_(volts)_Day_(volts) Day_(volts) Day_(volts) data 1...
Voltage Measurements From a Home Home Home Home VO Home Full Day_(volts)_Day_(volts) Day_(volts) Day_(volts) data 1 126.9 8 126.8 15 127.2 22 127.5 set 2 126.6 9 126.6 16 127.3 23 1274 3 127.0 10 127.3 17 126.9 24 126.8 4 127.2 11 127. 18 26.8 25 127.0 5 127.4 12 127.5 19 126.7 6 126.7 13 127.0 20 1...
1 answer
Q12: the following are things a nurse could say to address the patients concerns that vaccines...
Q12: the following are things a nurse could say to address the patients concerns that vaccines overwhelm the immune system, EXCEPT? QUESTION 12 The following the way to the proces that we Your immune system responds to thousands of antigens every day te the fact that aim is very haritable more so th...
1 answer
Choose the best match for this item: Produced during gestation A. Decreased oxygen B. Variant forms...
Choose the best match for this item: Produced during gestation A. Decreased oxygen B. Variant forms of hemoglobin C. Blood hemoglobin level D. Hgb E E.Homozygous F. Hgb F G. CLIA waived H. Hgb A1 I.Thalassemias J. Carrier...
1 answer
Q1)  A (brief) introduction to implantable electronic devices, introducing the biomedical needs, risks, challenges and technical solutions...
Q1)  A (brief) introduction to implantable electronic devices, introducing the biomedical needs, risks, challenges and technical solutions relevant to introducing electronics within the human body ......…..Please answer at least one page and providing References Q2) Technology revie...
1 answer
Mike is planning to retire in 32 years. He is thinking about opening a retirement account...
Mike is planning to retire in 32 years. He is thinking about opening a retirement account and plans to invest an equal amount each year into the account. He expects to earn 10.5% per year in the account and is planning to have $1,500,000 in the account at retirement, what is the amount of Mike's...
1 answer
Construct the cumulative frequency distribution that corresponds to the given frequency distribution. Height (inches) Frequency 720-749...
Construct the cumulative frequency distribution that corresponds to the given frequency distribution. Height (inches) Frequency 720-749 17 50-77915 80-809 20 81.0-8399 O A. Cumulative Height (inches) Fre 690-7191 720-749 36 750-7795 780-809 71 10-839 80 Cumulatve Height ünches)F Less than 750 3...
1 answer
Question 2. (10 marks) A manager is interested in estimating a population proportion. A sample of...
Question 2. (10 marks) A manager is interested in estimating a population proportion. A sample of size n = 100 yields 42 successes. Based on these sample data, compute a 99% confidence interval estimate for the true population proportion....
1 answer
Fundamentals of Financial Management Beijing Institute of Technology GRADE SHEET HOMEWORK 01 Student NAME: ID: Problem...
Fundamentals of Financial Management Beijing Institute of Technology GRADE SHEET HOMEWORK 01 Student NAME: ID: Problem Problem Statement Answer Points Grade The front desk receptionist routinely takes an extra 20 minutes of lunch to run personal errands. Division managers are padding costs estimates...
1 answer
Country A levies an individual income tax with the following rate structure: Percentage Rate 100 15...
Country A levies an individual income tax with the following rate structure: Percentage Rate 100 15 25 30 Bracket Income from 0 to $20,000 Income from $20,001 to $75,000 Income from $75,001 to $160,000 Income in excess of $160,000 Ms. SP's annual taxable income for years 1 through 5 is $130,400....
1 answer
What account balance is transferred from the Statement of Stockholders’ Equity to the Balance Sheet as...
What account balance is transferred from the Statement of Stockholders’ Equity to the Balance Sheet as the financial statements are prepared at the end of the accounting cycle? Retained Earnings Ending Balance Total Expenses. Net income. Accumulated Depreciation....
1 answer
Please answer 1,2,3,4,5,6,7 by showing all of your work make sure all of the answers is...
Please answer 1,2,3,4,5,6,7 by showing all of your work make sure all of the answers is fully correct. y-3 1. Solve fory: - 4 B) C) D)-16 4 4 2. Perform the operation: (9x + 2x -9) - (-5x- 3x + 9). A) 3x7 +5x B) 14x2 +5x - 18 C) 14x-x - 18 D) 3x+5x - 18 3. Multiply: (x' - 10) (x' + 10) B) x*...