subject
Business, 01.04.2020 16:10 Yskdl

Company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years. (Make sure to show all your work.)a. Calculate the present value if the interest rate is 11 percent. Should the firm undertake the project if the interest rate is 11 percent? Why?b. Calculate the present value if the interest rate is 10 percent. Should the firm undertake the project if the interest rate is 10 percent? Why?c. Calculate the present value if the interest rate is 9 percent. Should the firm undertake the project if the interest rate is 9 percent? Why?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 20:40
Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?
Answers: 3
question
Business, 22.06.2019 16:30
:; )write a paragraph of two to three sentences and describe what will happen to a society that does not have a productive workforce?
Answers: 3
question
Business, 22.06.2019 23:10
Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?
Answers: 2
question
Business, 23.06.2019 01:00
Motonous corporation has completed its fiscal year and reported the following information. the company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. the firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. how much retained earnings does the firm have?
Answers: 2
You know the right answer?
Company has an investment project that would cost $10 million today and yield a payoff of $15 millio...
Questions
question
Mathematics, 30.10.2019 13:31
question
Biology, 30.10.2019 13:31