You run a construction firm. You just won a contract to build in our office complex. building it will require an investment of 10.2 million today and 4.5 million in one year. The government will pay you 21.4 million in one year upon the buildings completion. Supposed to interest rate is 10.9%. What is the NPV of this proposal rounded to two decimal places?

Answers

Answer 1

The NPV of this proposal rounded to two decimal places is 5.88 million.

Net Present Value (NPV) of the given proposal:

NPV = Present Value of Cash Inflows - Present Value of Cash Outflows

Present Value of Cash Outflows:

Cash Outflows = 10.2 million today + 4.5 million in one year

Cash Outflows = 10.2 + (4.5 / (1 + 0.109)) [since interest rate is given as 10.9%]

Cash Outflows = 13.47 million

Present Value of Cash Inflows:

The government will pay 21.4 million in one year upon the building’s completion.

Present Value of Cash Inflows = Future Value of Cash Inflows / (1 + r)^n

Where, r = rate of interest

n = number of years

Future Value of Cash Inflows = 21.4 million

n = 1 year

PV of Cash Inflows = 21.4 million / (1 + 0.109)^1 = 19.35 million

NPV of the proposal = Present Value of Cash Inflows - Present Value of Cash Outflows= 19.35 - 13.47= 5.88

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Related Questions

The demand for books is: Qd = 120 - PThe supply of books is: Qs = 5P6) Refer to Scenario 2.1. What is the equilibrium price of books?A) 5B) 10C) 15D) 20E) none of the above

Answers

To find the equilibrium price of books given the demand and supply functions, we need to set Qd (quantity demanded) equal to Qs (quantity supplied). The demand and supply functions are given as:

Qd = 120 - P
Qs = 5P

Now, set Qd equal to Qs:

120 - P = 5P

To solve for the equilibrium price P, follow these steps:

1. Add P to both sides of the equation:
120 = 6P

2. Divide both sides by 6:
P = 20

So, the equilibrium price of books is 20. Therefore, the correct answer is D) 20.

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Do you believe that employees communication helps on a business?​

Answers

Answer:

Yea I do cus the more people understand each other the more things go by smoothly, you know there's a saying, ✨communication✨ is the answer

Identify the correct statement. Select one: a. During a recession, investment increases while consumption decreases. b. During a recession, investment is constant while consumption increases. c. Annual variations in investment are larger than annual variations in consumption. d. Annual variations in investment are smaller than annual variations in consumption. e. During a recession, investment decreases while consumption increases.

Answers

Answer:

Option C: Annual variations in investment are larger than annual variations in consumption

Explanation:

Investment

This is simply the act of buying or purchase of assets with the sole aim of increasing future income.

Investment risk

This is simply known as the likelihood of an investment will fail to pay the expected return or fail to pay a return at all.

Portfolio diversification

This act so as to limit the risk by spreading investment money among a wide range of investment tools.

Rate of return

This is simply known as the total return on an investment usually in percentage of the amount of money put into the investment.

What is the common trait of all computer crimes?
A.
Damage done to computer technology belonging to others
B.
The theft of classified electronic information
C.
Remote access of someone else's computer workstation
D.
The use of computer technology to commit the crime

Answers

A common trait of all computer crimes is that it involves: D. the use of computer technology to commit the crime.

What is a computer crime?

A computer crime is also referred to as cybercrime and it can be defined as a type of crime that typically involves the use of a computer and Internet to gain an unauthorized access to the personal resources of vulnerable (unsuspecting) users

This ultimately implies that, a common trait of all computer crimes is that it involves the use of computer technology to commit the crime such as stealing sensitive user data.

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1. Describe the general effect of education on a person’s earnings. (50 word minimum) *Take into consideration our notes*
2. Do you think this means everyone should make the decision to enroll in college? Tell me the why and why not? (70 word minimum) *Take into consideration our notes and the video on ‘The Economics of Education.’*
3. Describe your plan for work and/or college after high school. Then, describe one strategy you can use to allocate your time and money now that will help you stick to that plan in the future. (125 word minimum)
4. Lastly, what is the opportunity cost of the decision you explained in Question 3? (60 word minimum

Answers

Education and income have a high correlation. A common phrase used to describe education is "an investment in human capital." Similar to how individuals invest in financial assets to produce money, they also invest in human capital. In general, those who have more education make more money.

What are the benefits of education?

With its positive effects on health and livelihoods, social stability, and long-term economic growth, education is a potent force for change. Each of the 17 sustainable development goals must be achieved in order for it to succeed.

Among other things, income consists of wages, rent, interest, dividends, and subsidies. Due to their higher investment and saving rates compared to other classes, the rich or upper class tends to have a bigger percentage of unearned income in their overall income. The quality of a person's education and talents are immediately reflected in their employment.

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When you purchase shares of a company in the market, who are you buying those shares from?

Answers

Answer:

Normally, you are buying those shares from someone who already owns them. You are not buying them directly from the company itself, but instead someone who owns shares from the company, called a shareholder or stockholder.

Explanation:

I hope this helps! :)

Investors in stocks could be large entities like commercial banks, or they could be individuals just like you. Rather than buying the shares from the issuing company, you buy them from someone who already owns them. Most major stock exchanges engage in trading from 9:30 am to 4 pm, known as trading hours.

Features, Advantages and disadvantages free market economy?

Answers

Answer:

Advantage: Absence of Red Tape.

Advantage: Freedom to Innovate.

Advantage: Customers Drive Choices.

Disadvantage: Limited Product Ranges.

Disadvantage: Dangers of Profit Motive.

Disadvantage: Market Failures

Explanation:

hope it helped some :)

An important financial institution that assists in the initial sale of securities in the primary market is the.

Answers

Commercial bank is the correct answer

When the business cycle or economic activity is declining, the economy is said to be in....?

A
the trough

B
contraction

C
expansion

D
recovery

Answers

contraction is to decline the answer is B

Which statement best describes the lesson we can learn from Lupe's experience?

It’s too much work to open a checking account.
It’s only important to track large amounts in personal records.
It’s important to keep accurate records.
It’s best to use only one document to track spending.

Answers

Answer: it’s important to keep accurate records

Explanation:

Just did it

Considering the story of Lupe, the best statement that describes the lesson we can learn from Lupe's experience is "It’s important to keep accurate records."

The story of Lupe revealed that when people from authority tend to assess and crosscheck the accounting records when performing the auditing process.

This process is to check the actual proof of the transaction and look for any inaccuracies.

Any inaccuracies found could be used as a basis to indict people for financial fraud, regardless it is an honest mistake or not.

Hence, in this case, it is concluded that the correct answer is option C. "It’s important to keep accurate records.

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It has been noted that there is a connection between individualism that is fostered by Protestantism anda. government intervention in business activities.b. the willingness of a country to import foreign goods.c. feminine-based societies.d. the growth of the caste system.e. the extent of entrepreneurial activity in a nation.

Answers

It has been observed that there is a link between the individualism that Protestantism promotes and government involvement in commercial activity.

What does individualism mean?A basic emphasis on the value of the individual is emphasized by individualism, a moral perspective, political philosophy, ideology, and social orientation. Talk of individualism frequently involves comparisons to totalitarianism, collectivism, and other more oligarchical social structures. The core idea behind individualism is that the human individual must be at the center of the fight for liberty. Consequently, it is more person-centered. Individual humans are viewed as the primary analytical unit by ideologies including anarchism, existentialism, liberalism, and libertarianism. Talk of individualism frequently involves comparisons to totalitarianism, collectivism, and other more oligarchical social structures. It has been observed that there is a link between the individualism that Protestantism promotes and government involvement in commercial activity.

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.. If two variables have a direct relationship on a graph, it indicates that
A. both variables are not related.
B. as one variable rises, the other variable falls.
C. both variables are moving in the same direction.
D. as one variable rises, the other variable is constant.

Answers

Answer:

Option C. Both variables are moving in the same direction.

Explanation:

The reason is that in the direct relationship, the variables move in the same direction which means if one of the variable increases then the other will also increase and vice versa. So the only option that satisfies this condition is option C.

which significant event triggered the rapid and continuing growth in the demand for higher education in texas?

Answers

The end of World War II triggered the rapid and continuing growth in the demand for higher education in Texas.

In Texas, higher education is provided by a number of public and private institutions. The Texas Higher Education Coordinating Board is the state agency responsible for coordinating higher education in Texas.

The Coordinating Board oversees the state's public university system, which includes nine universities and two health-related institutions. The Board is committed to ensuring that all Texans have access to the resources and opportunities they need to succeed in higher education

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Which of the following measures a company's ability to pay its current liabilities? a. current ratio b. times interest earned c. inventory turnover d. earnings per share

Answers

To measures a company's ability to pay its current liabilities is "current ratio". The correct option is A.

The current ratio is a financial ratio that compares a company's current assets to its current liabilities. It indicates the company's short-term liquidity and its ability to meet its obligations that are due within one year.

The higher current ratio indicates a greater ability to cover short-term liabilities with available assets, implying a stronger financial position.

Therefore, the correct option is A that is current ratio.

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True or false, The market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio.

Answers

The statement the market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio is false because Returns on Stock B rise in tandem with those on Stock A. In general, this would imply a positive correlation between Stocks A and B.

Interest rate risk, equity price risk, foreign currency risk, and commodity risk are the four main risk factors that have an impact on the entire market. Diversification within the stock market cannot be used to lower systematic risk, also known as market risk. Inflation, interest rates, conflict, currency fluctuations, market crashes and downturns, along with recessions, are all examples of systemic risk sources.

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'Money is what money can buy' and 'Money is that which money does'.
Would you say the two statements above mean the same thing or are similar in any form ?
Give reason for your answer.

Answers

they are the same however the first quote is more specific

money IS what money can buy, but the money itself is currency (the same thing). basically the first quote is just paraphrasing

Help Identify the following statements as positive or normative. a. Because of its dampening effect on Canada's exports the value of the Canadian dollar relative to other currencies is too high. The statement is ... b. If Canadian inflation rises interest rates in the country are bound to increase. The statement is ... c. The federal government must devise policies to reduce the unequal distribution of incomes in the Canadian economy. The statement is... d. To stimulate economic growth more capital goods and fewer consumer goods should be produced in the Canadian economy. The statement is ...

Answers

The statement a is normative, statement b is positive, statement c is normative, and statement d is normative.

A - This statement expresses an opinion about the desirability of the Canadian dollar's value relative to other currencies. It suggests that the current value of the Canadian dollar is undesirable due to its impact on exports.

B - This statement describes a cause-and-effect relationship between rising inflation and increasing interest rates. It does not express any value judgment or opinion about whether this relationship is good or bad.

C - It expresses a value judgment by stating that the government has a moral obligation to implement policies aimed at reducing income inequality. It implies that the current level of income inequality is undesirable.

D - It expresses an opinion about the optimal allocation of resources in the Canadian economy to achieve economic growth. It suggests that shifting production towards capital goods and away from consumer goods would be beneficial for stimulating economic growth.

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Being able to make decisions effectively can make a worker more independent.


Please select the best answer from the choices provided

T
F

Answers

Answer: True

Explanation:

When we are able to make decisions effectively, this can make a worker more independent. This is true.

It should be noted that when one makes decisions effectively, ones confidence is enhanced and one believes more in himself or herself.

When this occurs, as individuals, we trust ourselves and our abilities to make the right decisions which ultimately make us more independent.

Answer:

True

Explanation:

Just took the quiz

Beverly is creating a website for her new clothing company. Aside from including photographs, how can she use the index page to quickly attract the

Answers

She can use bright contrasting colors and place a link to the index of summer clothing product pages and a noticeable location.

You can get a free area thru a spread of approaches, either by getting a web web hosting plan, a domain builder, an e-mail hosting plan, or via an unfastened area registrar.

A website (also written as a website) is a set of internet pages and associated content this is identified by means of a commonplace area call and published on at least one network server.

A website is a set of publicly on-hand, interlinked web pages that percentage a single area call. Websites may be created and maintained via a man or woman, group, business, or organization to serve an expansion of purposes. together, all publicly handy websites represent the arena-wide net.

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The skills a student learns while studying are transferable to many careers.
OA. True
OB.False

Answers

Transferable skills are the skills that a person can use and carry from one job to the next job. The skills a student learns while studying are transferable to many careers. This statement is TRUE.

What are Transferable skills?

Competencies that a person can utilize and carry from one profession to another are known as transferable skills. They consist of teamwork, organization, punctuality, flexibility, and communication skills.

An increasing number of organizations are looking for candidates with strong transferable skills to join their technical team. Candidates with transferable skills are quick and independent. Giving students the knowledge and skills that are applicable outside of the classroom will thereby position them for higher job success.

Candidates for any position should think about how valuable transferable skills are to their employers. These less tangible skills, which are inextricably linked to a profession, aid a candidate in demonstrating his level of education.

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A production possibilities frontier with constant opportunity cost is?

Answers

A production possibilities frontier with constant opportunity cost is a graphical depiction of the greatest number of combinations of two items. That is manufactured using a given set of resources and technology.

As the production of one thing grows, the opportunity cost of producing the other good stays constant. This indicates that when an economy travels along the frontier of production possibilities, the opportunity cost of creating one thing remains constant.

The production possibilities frontier with constant opportunity cost can be used to highlight the trade-offs between producing two items and the efficiency of resource allocation in an economy. It may also be used to demonstrate opportunity cost and the rule of rising opportunity cost.

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What is the meaning of cash in the balance sheet?

Answers

Answer:

The cash balance reported on a balance sheet is the cash in your bank adjusted for payments and receipts that have not yet cleared. For example, writen but not cashed cheques, or recieved but not yet deposited cheques.

Explanation:

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will


stay the same
decrease
Increase

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks willstay

Answers

Answer:

decrease

Explanation:

What is the Disadvantage of fair trade?

Answers

Answer:

Losing a valuable

Explanation:

When trading there is always a valuable lost after. But if fair trading, you get new valuable

Answer:

One of the most commonly cited disadvantages of fair trade is paying premium prices. The cost of fair trade products tends to be higher, but are people willing to stump up the extra cash?

Explanation:

in the case of installment notes, interest expense is calculated as a constant percentage of the carrying value. group startstrue or false

Answers

Interest expenditure on installment notes is computed as a fixed percentage of carrying value - true.

In the case of installment notes, is interest expense computed as a fixed percentage of carrying value?

Interest expenditure on installment notes is computed as a fixed percentage of carrying value. A credit to Notes Payable is included in the entry to record monthly installment payments.

For installment notes, is interest expense determined as an ongoing % of carrying value?

Interest expense is determined for installment notes as a fixed percentage of carrying value. The credit to Notes Payable is part of the entry to track monthly installment payments.

Interest Cost is equal to the following: Interest Rate * ((Starting + Ending Debt Balance) / 2)] The annual interest expense is determined by dividing the average loan principle by the interest rate, for instance, if a corporation has a total of $100 million in debt at an interest rate fixed at 8%.

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When the simple regression equation y; = B2 + B2x, +u,, t=1,2,...,I is written in matrix notation, the OLS estimator is ß =(XX)" Xy. Then: Select one: A. X'X has dimension 2 x 2 and its inverse can always be found. B. X'y has dimension 2 x1 C. B^ has dimension 1x1 i.e. it is a scalar D. X'X has dimension T x T and its inverse can not always be found. E. X'y has dimension T x1
Previous question

Answers

X'y has dimension T x1 of the equation and scalar D .The correct answer is E.

In matrix notation, the simple regression equation can be written as y = Xß + u, where y is an I x 1 vector of the dependent variable, X is an I x 2 matrix of the independent variable (with the first column being all ones for the intercept), ß is a 2 x 1 vector of coefficients (including the intercept), and u is an I x 1 vector of the error term.

To estimate ß using ordinary least squares (OLS), we minimize the sum of squared residuals (SSR), which can be expressed as SSR = (y - Xß)'(y - Xß). Taking the derivative of SSR with respect to ß and setting it equal to zero yields the OLS estimator ß = (X'X)-1 X'y.

X'X is a 2 x 2 matrix that represents the sum of squares and cross-products of the independent variable. Its inverse can be found as long as it is non-singular, which requires that the columns of X are linearly independent. However, the dimension of X'X  equation with scalar D is not T x T, as T is not explicitly given in the question.

X'y is a 2 x 1 matrix that represents the sum of cross-products between the independent and dependent variable. Its dimension is T x 1, where T is the number of observations.

B^ does not have dimension 1x1, as it is a vector of length 2 (including the intercept and slope coefficient).

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According to the cartoon, what actions of Standard Oil earned it the label "The Monopoly Monster"?

Answers

The action that made Standard Oil earned the label monopoly monster is that they control and owned about 90 percent of US oil.

What is Monopoly?

Monopoly can be defined as a situation whereby a manufacturers owns and control virtually 100% market shares.

In summary, monopoly does not allow for healthy market competition.

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who do you think is gonna win this election/who are you voting for?

Answers

I think Biden will win this election. Hopefully

Answer:

please mark me Brainliest: i think joe Biden will win definitely

Explanation:

selling on consignment means that the item will not be owned by the person selling it.t/f

Answers

True. Selling on consignment means that the item is owned by the consignor (the person who provided the item) and is being sold by the consignee (the person or business selling the item) on behalf of the consignor.

What is Selling on consignment means?

Selling on consignment refers to an arrangement between a seller and a consignor in which the seller agrees to display and sell the consignor's goods on their behalf, but the consignor retains ownership of the goods until they are sold.

In this arrangement, the seller typically takes a percentage of the sale price as a commission, while the consignor receives the remainder of the money from the sale. The consignor usually sets the price of the goods and may also provide guidelines on how they should be marketed and displayed.

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The property cost Harding $2,375,000. Harding paid $700,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $778,920; Building, $2,161,080 and Equipment, $786,000. What value will be recorded for the building

Answers

To determine the value that will be recorded for the building, we need to subtract the value of the land and equipment from the total cost of the property.

Given that the cost of the property is $2,375,000, and the values of the land and equipment are $778,920 and $786,000 respectively, we can calculate the value of the building as follows:

Value of the building = Total cost of the property - Value of the land - Value of the equipment

Value of the building = $2,375,000 - $778,920 - $786,000

Value of the building = $810,080

Therefore, the value that will be recorded for the building is $810,080.

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