Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$31 $7 $12 $22 Project B -$19 $13 $6 $5 What are the projects' NPVs assuming the WACC is 5%

Answers

Answer 1

Answer:

Project A's NPV = $5.56

Project B's NPV = $3.14

Explanation:

year          project A        project B

0                  -$31                -$19

1                     $7                 $13

2                   $12                 $6

3                  $22                 $5

Project A's NPV = -$31 + $7/1.05 + $12/1.05² + $22/1.05³ = -$31 + $36.56 = $5.56

Project B's NPV = -$19 + $13/1.05 + $6/1.05² + $5/1.05³ = -$19 + $22.14 = $3.14


Related Questions

A ten-year $2,000,000 bond is issued on January 1, 20xx with a 5% stated interest rated. Interest is paid semiannually on June 30 and December 31st. What is the amount that would be recorded as interest expense on June 30, 20xx (the first interest payment), assuming that no interest expense has been recorded since the bond was issued on January 1st

Answers

Answer:

the amount of interest expense as on June 30 is $50,000

Explanation:

The computation of the amount of interest expense as on June 30 is shown below

= Bond amount × rate of interest × number of months ÷ total number of months

= $2,000,000 × 5 months × 6 months ÷ 12 months

= $50,000

hence, the amount of interest expense as on June 30 is $50,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

If $500 is invested at an annual interest rate of 8% per year, its future worth at the end of 30 years will be most nearly:_________. a. $1, 200 b. $1, 700 c. $5, 031 d. $15,000

Answers

Answer:

c. $5,031

Explanation:

The value of amount the dollar invested today is going to be worth in Future is known as its Future Value.

The Future Value is calculated using Time Value of Money techniques. Here i will specifically use a financial calculator as below :

PV = - $500

I = 8%

N = 30

PMT = $0

P/YR = 1

FV = ?

Inputting the values as shown gives a Future Value of  $5,031

The future worth at the end of 30 years will be most nearly be c. $5, 031

Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $3,900,000
Engineering design work 1,180,000
Development of a prototype device 590,000
Testing and modification of the prototype 390,000
Legal fees for patent application 79,000
Legal fees for successful defense of the new patent 39,000
Total $6,178,000
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
4. value:
1.92 points
Required information
Required:
1. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet.
5. value:
1.92 points
Required information
2. Determine the amount Satellite Systems should report as research and development expense in the income statement.

Answers

Answer: See explanation

Explanation:

a. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet.

This would be:

Legal fees for application of patent = $79,000

Add: Legal fees for successful defense of new patent = $39000

Total cost = $79000 + $39000 = $118,00

b. Determine the amount Satellite Systems should report as research and development expense in the income statement.

This would be:

Basic research in developing technology = $3,900,000

Add: Engineering design work = $1,180,000

Add: Development of prototype device = $590,000

Add: Testing and modification of prototype = $390,000

Total = $6,060,000

Mark this question Brian discussing the financial position of his company with Mike, who is interested in acquiring Brian's company, is an example of which of the following? A. Managerial accounting B. Investment accounting C. Financial accounting D. External accounting

Answers

Answer:

B. Investment accounting

Explanation:

Investment accounting focuses on the management of assets of the business. this also includes valuations when considering a sell, a merger or acquisition of the business.

In this question, Mark wants to acquire Brian's company so he is making an investment decision.

The given situation represent the Financial Accounting

The following information should be considered;

Financial accounting means the process of identifying, classifying, recording, summarizing, analyzing & reporting the financial information of an entity to all the stakeholders of the company.So, in the given situation, it is the financial accounting example.

Learn more; https://brainly.com/question/17429689?referrer=searchResults

Marigold Corp. constructed a building at a cost of $13600000. Weighted-average accumulated expenditures were $5700000, actual interest was $560000, and avoidable interest was $280000. If the salvage value is $1110000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is $326250. $319250. $347000. $461750.

Answers

Answer:

$121,750

Explanation:

Cost of the building = 13600000

Average accumulated expenses = 5700000

Actual interest = 560000

Avoidable interest = 280000

Salvage value = 1110000

Life in years = 40 years

Depreciation expenses for 1st full year = {(Average accumulated expenses + Avoidable interest) - Salvage value} / Life in years

Depreciation expenses for 1st full year = (5700000 + 280000 - 1110000) / 40

Depreciation expenses for 1st full year = 4870000 / 40 years

Depreciation expenses for 1st full year = $121,750

Submit your project calculating the financial ratios of a publicly traded company. Be sure to follow WILL MARK BRANLIEST these guidelines:
• Identify the publicly traded company you selected.
• List the four financial ratio categories and the ratio you have chosen from each category.
• Show the data you used from the annual report and how you calculated the four financial ratios.
• Show the four ratios.

Answers

Answer:

what grade is this?

Explanation:

is the college???

ideas to re-motivate employees

Answers

Answer:

Explanation:

Giving gifts and promotions to hardworking employees

Why do company manager-owners smile when they ring the stock exchange bell at their ipo?A. An IPO's price goes up on the first day, generating guaranteed returns for investors. B. Manager-owners are freed of the burden of managing their company. C. An IPO reveals the value of the manager-owners' stake. D. Manager-owners receive their first stake in the company at an IPO.

Answers

Answer:

The correct option is C. An IPO reveals the value of the manager-owners' stake

Explanation:

The reason company manager-owners smile whenever they ring the stock exchange bell at their ipo which full meaning is INITIAL PUBLIC OFFERING is that it will show them the value of their owners stake which is the percentage of the value of the stock the manager own .

You will deposit $1,200 at the beginning of every four years for 20 years. If the effective rate of interest is 6%, how much will you accumulate at the end of the 20 year period

Answers

Answer:

Total FV= $14,011.21

Explanation:

Giving the following information:

Annual deposit= $1,200 (beginning)

Number of periods= 20 years

Interest rate= 6%

To calculate the total future value, we need to use the following formula on each deposit:

FV= [PV*(1+i)^n]

FV1= [1,200*(1.06^20)]

FV1= 3,848.56

FV2= [1,200*(1.06^16)]

FV2= 3,048.42

FV3= [1,200*(1.06^12)]

FV3= 2,414.64

FV4= [1,200*(1.06^8)]

FV4= 1,912.62

FV5= [1,200*(1.06^4)]

FV5= 1,514.97

FV6= [1,200*1.06]

FV6= 1,272

Total FV= $14,011.21

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End of Semester Test:
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Select the correct answer.
Stears Corp. paid interest on loan of $3,500 by check. What will the entry in the journal of the company be?
OA. Interest on Loan account (debit) Cash in Bank account (credit)
ОВ. .
Cash in Bank account (debit) Interest on Loan account (credit)
Ос. .
Interest on Loan account (debit) Loan account (credit)
OD.
Loan account (debit) Interest on Loan account (credit)
OE.
Loan account (debit) Cash in Bank account (credit)
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Answers

Answer:

Explanation:

the awners is b because it shows understaing of what people do

The main goals of an engineering ethics class if to memorize the professional codes of ethics as formulated by professional organizations like the NSPE.
a. True
b. False

Answers

Answer:

a. True

Explanation:

NSPE stands for National Society of Professional Engineers. It is a professional association or a professional society which represents the licensed professional engineers in the United States of America.

The NSPE code of ethics for the engineers are the guideline of their professional works with honesty and integrity. It teaches the engineers to perform their professional  duty with high principles of the ethical conduct.

Thus the main objective of an engineering ethics class is to make the engineers learn about the ethical conducts in their profession and memorize them and practice while delivering work as a professional.

At her death Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship. Serena contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000. What amount, if any, is included in Serena's gross estate?

Answers

Answer: $105000

Explanation:

From the question, we are informed that Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship when she died and that she contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000.

The amount, that will be included in Serena's gross estate will be:

= $210,000 × 50%

= $210000 × 0.5

= $105,000

It should be noted that only 50% will be included since she owes the property with her spouse in joint tenancy.

OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of 1,000 shares of stock in 1 year. The T-bill rate is 6% per year. a. If Brandex stock now sells at $120 per share, what should the futures price be

Answers

Answer: $127.20

Explanation:

Based on the scenario in the question, if Brandex stock now sells at $120 per share, the futures price would be:

T-bil rate = 6%

Stock Price = $120

Future price = $120 × (1 + 6%)

= $120 × (1 + 0.06)

= $120 × 1.06

= $127.20

Determine the price in period 1 (the future) if 30 units of oil are consumed in period 0 (the present).

Answers

Answer:

$16.50

Explanation:

Note: The complete question is attached as picture below

We know that there is a total of 90 units of oil and 30 units is consumed in period 0.

So, in period 1, the consumption amount will be = 90-30=60 units.

So, Q1 = 192 - 8P

For 60 units, the price will be 60 = 192 - 8P

8P = 192 - 60

8P = 132

P = 132 / 8

P = 16.5

So, the price in period 1 is $16.50

Think about a small business you might enjoy opening. Typical examples might be a restaurant, specialty clothing store, or professional service. Assume that it will be in a monopolistically competitive market structure. How will you specifically differentiate your product from others in the market

Answers

Answer:

Explanation:

When opening a business in a monopolistically competitive market structure it is incredibly difficult to compete and find a loyal customer base to make a profit. The best way to differentiate your product would be to personalize it as much as possible for every client. Personalizing not only the product but the shopping experience for each individual client makes that client feel special and cared about. This helps convince them to purchase this product from you as opposed to a competitor. Therefore, slowly increasing your loyal customer base.

If the dividend yield for year 1 is expected to be 5% based on a stock price of $25, what will the year 4 dividend be if dividends grow annually at a constant rate of 6%

Answers

Answer:

$1.33

Explanation:

Calculation for what will the year 4 dividend be

Using this formula

Year 4 dividend=[(Expected dividend yield×Stock price)×(1+Constant rate )]

Let plug in the formula

Year 4 dividend = [(.05 × $25) × (1+0.06)]

Year 4 dividend=(.05 × $25) × 1.06

Year 4 dividend=1.25×1.06

Year 4 dividend= $1.33

Therefore what will the year 4 dividend be if dividends grow annually at a constant rate of 6% is $1.33

a seller and a broker enter into a six month agreement where the seller agrees to pay a commission to the broker, regardless of who actually sells the property. What type of cotnract is this?

Answers

Answer:

exclusive right to sell

Explanation:

The exclusive right to sell is an agreement between the seller and broker in which the broker received the commission from the seller irrespective who actually sales the property

Therefore as per the given situation, since there is an agreement done between both the parties for 6 months and the same criteria is to be followed

So it is a exclusive right to sell

DVC stock has a required return of 25%. The expected market return is 15% and the risk-free rate is 5%. What is the beta of the DVC stock

Answers

Answer:

2

Explanation:

As per CAPM, Required Return = Risk Free rate + (Market Return - Risk Free Rate ) * Beta

25% = 5% + (15%-5%)*Beta

25% = 5%+10%*Beta

25% - 5% = 10%*Beta

Beta = (25%-5%)/10%

Beta = 20% / 10%

Beta = 2

Thus, the beta of the DVC stock is 2

True or False: Capital budgeting, capital structure, and dividend policy decisions are important to managers and shareholders because their consequences can affect the amount, timing, and riskiness of the cash flows produced by the firm and its securities.

Answers

Answer:

I would go with true.

Explanation:

Shareholders want there shares to increase, so they would like the company to make good business decisions.

In an ideal world if you manage a companies budgeting and structure perfectly you would have no risk involved in the cash flow.

Hope I helped!

The Federal Reserve mandates that banks must keep a certain percentage of money on hand at particular times. What is this referred to as?a. Reserve requirementb. Mandated moneyc. M1d. Ratio of reservatione. M3

Answers

Answer:

a. Reserve requirement

Explanation:

As we know that the bank must hold the money percentage of the deposits made in cash as per the federal reserve so the same we called as a reserve requirement.

It is mandatory to keep the specific percentage for particular times

Therefore as per the given situation, the option a is correct

And, all the other options are incorrect

Which one of the following accounts will be debited when making closing entries?
a. Cost of goods sold
b. Sales Revenue
c. Cash
d. Accounts Payable

Answers

Answer:

b. Sales Revenue

Explanation:

You need to close temporary accounts, i.e. those included in the income statement. Sales revenue is closed against income summary account, the same as cost of goods sold. But in order to close cost of goods sold you must credit the account, not debit it. Cash and accounts payable are permanent accounts that are not closed at the end of the accounting period.

A collaborative selling environment makes the sales pitch more challenging for salespeople.
O True
O False

Answers

Answer: True

Explanation:

Collaborative selling simply refers to a sales approach whereby both the buyer and seller collaborate that is, work together in order to get a convenient and suitable purchase.

It should be noted that a collaborative selling environment makes the sales pitch more challenging for salespeople. Therefore, the answer is true.

equired information Accounts receivable are amounts due from customers for credit sales. A subsidiary ledgerlists amounts owed by each customer. Credit sales arise from at least two sources: (1) sales on credit and (2) store credit card sales. Sales on credit refers to a company's granting credit directly to customers. Store credit card sales involve customers' use of store credit cards. Sellers allow customers to use credit cards for all of the following reasons:
a. seller does not have to decide who gets credit.
b. seller accepts the risk for extending credit to customers.
c. seller receives cash sooner than if credit is granted directly to the customers.
d. may allow seller to increase sales volume.
e. seller determines which customers receive credit and how much.

Answers

Answer:

a. c. and d.

Explanation:

Credit cards are extremely commonly used because of its ease of use and because it gives both sellers and buyers many benefits. For sellers they allow customers to use credit cards because they do not have to decide who gets credit, seller receives cash sooner than if credit is granted directly to the customers, and may even allow the seller to increase sales volume. This in general gives the seller a new payment option that is widely used which in term brings in more customers as they are able to purchase the products with money they do not currently have.

How the big crunch happen according to the steffen hawking?​

Answers

Answer:

Before he passed away in March, theoretical physicist Stephen Hawking had published more than 230 articles on the birth of the universe, black holes and quantum mechanics. It turns out he had one more theory left in the locker.

On Wednesday, the Journal of High Energy Physics published the British scientist's final thoughts on the Big Bang, the leading theory for how the universe began. The new report, co-authored by Belgian physicist Thomas Hertog, counters the longstanding idea that the universe will expand for eternity. Instead, the authors argue the Big Bang had a finite boundary, defined by string theory and holograms.

HBX reported the following changes in its balance sheet accounts in 2016: Accounts receivable increased by $40; accounts payable decreased by $25; accrued expenses increased by $20; net fixed assets decreased by $60. What would be the net change in the cash account

Answers

Answer:

Change in Cash is $15

Explanation:

The computation of the net change in the cash account is as follows:

But before that the following calculations need to be done

Change in Liabilities & Stockholders’ Equity = Change in Accounts Payable + Change in Accrued Expenses

= -$25 + $20

= -$5

Now  

Change in Assets = Change in Liabilities & Stockholders’ Equity

= -$5

And,  

Change in Assets = Change in Cash + Change in Accounts Receivable + Change in Net Fixed Assets

-$5 = Change in Cash + $40 - $60

So, the Change in Cash is $15

So, net change in cash account is $15

The features of a product that make it dífferent from other products on the market are collectively referred to as the
product's
O point of difference
O protocol
O market distinction
O product mix

Answers

Answer:

point of difference

Explanation:

Points of difference is the term that also describes the salient features that make a product stand out from its competitors. There are unique traits that make a product different from the rest. Points of difference are also referred to as differentiators or key differentiators.

Marketers use the point of difference to advertise or promote a product. They highlight the stand-out attributes to convince customers to buy.

One unusual feature of the UCC is the so-called "battle of forms" concept, under which additional terms from the forms used by the merchants involved become part of their contract unless there is an objection on a timely basis. Read the attached opinion in J.W.S. Delavau, Inc. v. Eastern America Transport & Warehousing, Inc., which is from a Philadelphia case. What is your view of the decision that was reached by the court?

Answers

Answer:

The decision reached by the court was valid, in my view.  Since the parties, Delavau, Inc. and Eastern Warehousing, Inc. had a valid contract in which they set out their understanding and agreement on the terms of their business relationship, the parties should follow the contract terms without distractions from pre-printed Form terms.

Having a formal contract is the only way to avoid the battle of forms.

Explanation:

The conflict involved a battle of conflicting forms.  This battle of conflicting form, with different contract terms, occurred when Delavau, Inc. and Eastern Warehousing, Inc. exchanged contract terms, with Eastern's own small print terms on the reverse side its own receipts, which it wanted Delavau to comply with.  That the court held that Delavau was not bound by Eastern's form terms was valid because their contract agreement specified the terms of their relationship, which cannot be negated by the form terms.

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a

Answers

Answer:

Bad debt expense

      To Allowance for doubtful accounts

(Being the bad debt expense is recorded)

Explanation:

The adjusting entry using the allowance method for recording the predicted uncollectible account is as follows:

Bad debt expense

      To Allowance for doubtful accounts

(Being the bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expenses and credited the allowance for doubtful account as it decreased the assets

Therefore the above represent the bad debt expense

Ken just purchased new furniture for his house at a cost of $16,700. The loan calls for weekly payments for the next 6 years at an annual interest rate of 11.17 percent. How much are his weekly payments

Answers

Answer: $73.51

Explanation:

No. of periods = 6 * 52 weeks = 312 weeks

Weekly Interest rate = 11.17%/52 = 0.2148%

Weekly Payment = Cost * (rate / ( 1 - ( 1 + r ) ^ -n))

= 16,700 * (0.2148% / (1 - (1 + 0.2148%)⁻³¹²))

= $73.51


4.) You find out that your aunt works for a defense manufacturing company that has several defense contracts with the government she tells you that she works for a team that is producing a communication satellite.

5.) Your class visits a local jail run by a private profit making company that detains county criminals in this paid with tax revenue.

Answers

Answer:

1) public

2) merit

3) public

4) public

5) individual

Explanation:

1) Fire fighters and their fire prevention can be considered a public good because they are granted free of charge. Public goods are a benefit of being a citizen and are provided. This is an example of a public good for the services are provided for free and without any profit to the owners, such as the government or a different corporation.

2) The goods and services provided are merit goods because they come from the government and the private sector. They were collected by taxes. Your cousin attends a nearby elementary school that is supported financially by local property tax revenue. Being that the case, the goods and services provided are public because they come from the government and the private sector. Taxes are helping the young man get their education. The Government provide merit goods and services to promote consumption and equity. The government considers that consumption would not be based on the ability to pay.

3) The Military spending is not seen as public good, but Defense is. In economics, it is considered that a public good something that's non-rivalrous and also excludable in a way that individuals may not be excluded from using or enjoying the goods without having to pay for it. In the US, both the air that you breathe and public defense are considered public goods.

4) It is a public good as the contracts that the company has with the government is because that the government wants to invest in it as it is in the best interest of its people. The central role of the government in any country is to bring prosperity and this is done by investing in infrastructure and meeting the expectations of its people by investing in different areas which includes defense, communication, transport, infrastructure development, education, health, etc.

5) Individual good is the right answer. An individual good has the characteristic of being exclusive of property rights and rivalry of consumption, meaning that the owner can prevent it from being consumed by anyone and they can be consumed by individuals without affecting their availability to other individuals. In the example, it only gets sustained by the local taxes and only puts behind bard the county criminals and not any criminal, so this is why individual good fits the answer

hope this helps

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