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viva [34]
2 years ago
15

Present Value of an Annuity of 1 Periods8%9% 10.926 0.917 0.909 21.783 1.759 1.736 32.577 2.531 2.487 A company has a minimum re

quired rate of return of 9%. It is considering investing in a project that costs $195000 and is expected to generate cash inflows of $78000 at the end of each year for three years. The net present value of this project is $39000. $19742. $2418. $197418.
Business
1 answer:
Bogdan [553]2 years ago
8 0

Answer:

d. $197,418

Explanation:

Profitability index for this project = Present value of cash inflows / Present value of cash inflows

Profitability index for this project = 2.531*$78000 / $195000

Profitability index for this project = $197,418 / $195,000

Profitability index for this project = 1.0124

So, the net present value of this project is $197,418

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Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% i
ladessa [460]

Answer:

$44.87

Explanation:

Use Dividend Discount Model to solve this question;

First, find the dividend per year;

First year's dividend ; D1 = D0(1+g)

D1 = 1.32 (1.30) = 1.716

Second year's dividend ; D2 = 1.716 (1.10) = 1.8876

Third year's dividend ; D3 = 1.8876 (1.05) = 1.9820

Next, find the present value of each dividend at 9% required return;

PV (D1) = 1.716 / (1.09) = <em>1.5743</em>

PV (D2) = 1.8876 /(1.09²) = <em>1.5888</em>

PV (D3 onwards) = \frac{\frac{1.9820}{0.09-0.05} }{1.09^{2} } \\ \\ = \frac{47.19}{1.1881}

= PV (D3 onwards) = <em>41.7052</em>

Sum up the PVs to find the current market value of the stock;

= 1.5743 + 1.5888 + 41.7052

= 44.8683

Therefore the value is $44.87

5 0
1 year ago
While reconciling your check register to your bank statement, you notice that your check register balance is $1250.00, while you
muminat

Answer:

You could have done a transaction that you didn't take into consideration in the check register.

this might be:

1. check

2. debit card withdrawal or POS transaction

3. Bank charges

4. fees for an order of checks

6 0
1 year ago
Jake has been asked to help test the business continuity plan at an offsite location while the system at the main location is sh
Xelga [282]

Answer: a. True

Explanation: A parallel test invovles bringing the recovery site to a state of operational readiness, but maintaining operations at the primary site

8 0
1 year ago
Read 2 more answers
QUIZLET Kim raises and sells horses as a hobby. She also has income from riding lessons that are part of the hobby activity. Inc
Juli2301 [7.4K]

Answer:

Include all income; deduct no expenses

Explanation:

The Tax Cuts and Jobs Act changed the way hobby expenses and income is taxed. Since 2019, any income generated by a hobby is taxed as ordinary income (not subject to self employment taxes) but any expenses related to your hobbies are not deductible any more. Until 2018, you could deduct hobby expenses as long as they were above 2% of your gross income and they didn't hobby income.

6 0
1 year ago
Shawna would like to explore a career that would allow her to work outdoors with natural resources. Which two careers would be t
Anni [7]

Answer:

The only two jobs that deal with natural resources are:

  1. oil rig driller
  2. wind turbine engineer

Oil rig drillers work in the ocean completely surrounded by water, or maybe other oil rigs but they are never too close.

Wind turbine engineers work on open spaces, surrounded by very few things other than wind turbines. Wind turbines are HUGE and they are usually located on very isolated places.

5 0
2 years ago
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