Project #57745 - finance (just 3 questions)

A project produces the following Cash Flows during the next 3 years:

Year

1

2

3

Cash Flow

456

567

678

If the cost of capital is 12%, what is the project’s Present Value (PV)? 

(do not include $ sign or commas in your answer.

round your answer to the nearest $, eg., 500.)

 

A factory costs $ 400,000. It will produce an inflow (after operating costs) of $ 100,000 in year 1, $ 200,000 in year 2 and $ 300,000 in year 3.

The opportunity cost of capital is 12%.

Calculate the NPV.

(do not include $ or commas in your answer; round your answer to the nearest $)       

 

An aunt of yours intends to bequeath you her savings.

She offers you three choices:

(a) receiving $ 100,000 today or

(b) receiving $ 200,000, after ten years or

(c) receiving $ 25,000 every year for the next 5 years.

If the interest rate is 6.75%, which option would you choose?  

Indicate the amount you would receive under the best option in round $.

Do not include $ or comma in your answer.

Subject Mathematics
Due By (Pacific Time) 02/14/2015 11:00 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy