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denis23 [38]
2 years ago
11

Capstone Investments is considering a project that will produce cash inflows of $11,000 in year 1, $24,000 in year 2, and $36,00

0 in year 3. What is the present value of these cash inflows if the company assigns the project a discount rate of 12 percent?
Business
1 answer:
fomenos2 years ago
7 0

Answer:

Total= $54,578.17

Explanation:

Giving the following information:

Capstone Investments is considering a project that will produce cash inflows of $11,000 in year 1, $24,000 in year 2, and $36,000 in year 3.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

Year 1= 11,000/1.12= 9,821.43

Year 2= 24,000/1.12^2= 19,132.65

Year 3= 36,000/1.12^3= 25,624.09

Total= $54,578.17

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How frequently does John typically receive account statements from his bank?
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If expected return is less than required return on an​ asset, rational investors will​ ________.
DedPeter [7]
Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.
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Assuming that data mining techniques are to be used in the following cases, identify whether the task required is supervised or
Greeley [361]

Answer:

Supervised and Unsupervised Learning:

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b. Supervised learning

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4. Unsupervised learning

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Initial Outlay -$5,000 Year 1 $3,000 Year 2 $3,500 Year 3 $3,200 Year 4 $2,800 Year 5 $2,500. a. What is the PI if the discount
kkurt [141]

Answer:

a. What is the PI if the discount rate is 20%?

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PI = $9,137.41 / $5,000 = 1.83

b. What is the NPV if the discount rate is 20%?

NPV = -$5,000 + $9,137.41 = $4,137.41

c. What is the IRR if the discount rate is 20%?

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Explanation:

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Year 4 $2,800

Year 5 $2,500.

7 0
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