Business, 22.10.2019 01:00 AbhiramAkella

You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. which of the following would lower the calculated value of the investment?
a) the cash flows are in the form of a deferred annuity, and they total to $100,000. you learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000.
b) the discount rate increases.
c) the riskiness of the investment's cash flows decreases.
d) the total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.
e) the discount rate decreases.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 02:20

Archangel manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. the production details for the year are given below. calculate the manufacturing overhead allocation rate for the year based on the above data. (round your final answer to two decimal places.) a) 42.42% b) 257.14% c) 235.71% d) 1, 206.90% archangel production details.

Answers: 3

Answer

Business, 22.06.2019 04:40

Select the correct text in the passage.which sentences in the given passage explains the limitations of monetary policies? monetary policies - limitationsmonetary policies are set by the central bank to bring about growth in the economy.de can be achieved these policiesw at anden i sca poit would be fair to say that changes in the economy cannot be brought about instantly by monetary po des.monetary policy can only influence not control, economic growththe monetary policy makers do work on sining the perfect balance between demand and supply of money in the economy

Answers: 3

Answer

Business, 22.06.2019 09:00

According to this excerpt, a key part of our national security strategy is

Answers: 2

Answer

Business, 22.06.2019 15:20

Gulliver travel agencies thinks interest rates in europe are low. the firm borrows euros at 5 percent for one year. during this time period the dollar falls 11 percent against the euro. what is the effective interest rate on the loan for one year? (consider the 11 percent fall in the value of the dollar as well as the interest payment.)

Answers: 2

Answer

You know the right answer?

You plan to analyze the value of a potential investment by calculating the sum of the present values...

Questions