Sister pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. al's construction builds and sells water features and fountains and has an aftertax cost of capital of 10.3 percent. sister pools is considering building and selling its own water features and fountains. the sales manager of sister pools estimates that the water features and fountains would produce 20 percent of the firm's future total sales. the initial cash outlay for this project would be $85,000. the expected net cash inflows are $17,000 a year for 7 years. what is the net present value of the sister pools project?

NPV -6,422.07908

The investment is not profitable at current cost of capital os 11.6%

Explanation:

Sister Pools 11.6% after tax cost of capital

Contructions 10.3% after tax cost of capital

- 85,000

cash flow 17,000 for next 7 years

We will calculate the present value of a 7-years annuity of 17,000 at 11.6% rate

We use Sister Pools rate because we are asked for this company and there is no indication about a change in the cost of capital condition.

PV = 78,577.92092

Next we subtract the investment cost to get the Net Present Value

78,577.92092 - 85,000 = -6,422.07908

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer social mobility;