Business, 12.08.2020 18:01 6710000831

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow
0 160,000
1 335,000
2 400,000
3 295,000
4 250,000
All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to Improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent.
If Anderson uses a required return of 7 percent on this project, what are the NPV and IRR of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16. Enter your IRR as a percent.)
NPV
IRR %

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:30

Which of the following correctly describes the accounting for indirect labor costs? indirect labor costs are product costs and are expensed as incurred. indirect labor costs are period costs and are expensed when the manufactured product is sold. indirect labor costs are period costs and are expensed as incurred. indirect labor costs are product costs and are expensed when the manufactured product is sold.

Answers: 3

Answer

Business, 22.06.2019 21:30

Which of the following best explains why online retail companies have an advantage over regular stores? a. their employees make less money because they mostly perform unskilled tasks. b. they are able to keep distribution costs low by negotiating deals with shipping companies. c. their transactions require expensive state-of-the-art technological devices. d. they have a larger number of potential customers because people anywhere can buy from them.

Answers: 1

Answer

Business, 22.06.2019 21:30

China white was the black market selling of ivory, in which the profit was redistributed back into the trafficking of heroin.

Answers: 3

Answer

Business, 24.06.2019 03:00

The big black bird company (bbc) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. working the normal two shifts of 4040 hours each per week, the bbc production process usually produces 2 comma 6002,600 uniforms per week at a standard cost of $125125 each. 7070 employees work the first shift and 3030 the second. the contract price is $240240 per uniform. because of the urgent need, bbc is authorized to use around-the-clock production six days per week. when each of the two shifts works 7272 hours per week, production increases to 4 comma 2004,200 uniforms per week but at a cost of $160160 each.

Answers: 1

Answer

You know the right answer?

Anderson International Limited is evaluating a project in Erewhon. The project will create the follo...

Questions