Business, 25.05.2021 03:10 Brucechavez3334

Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project alpha) that will require an initial investment of $500,000. The project is expected to generate the following net cash flows: Year Cash Flow
Year 1 $325,000
Year 2 $425,000
Year 3 $450,000
Year 4 $400,000
Blue Hamster Manufacturing Inc’s weighted average cost of the capital is 10%, and project alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)?
a. $871,690
b. $1,157,991
c. $1,182,991
d. $757,991

Answers: 2

Show answers

Another question on Business

Business, 20.06.2019 18:04

The text states that the committee “expects inflation to rise gradually toward 2% over the medium term as the labor market improves further….” why would the fomc expect inflation to rise because of improvements in the labor market?

Answers: 1

Answer

Business, 22.06.2019 06:40

10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.

Answers: 3

Answer

Business, 22.06.2019 22:40

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.

Answers: 3

Answer

Business, 23.06.2019 02:40

This year, druehl, inc., will produce 60 comma 000 hot water heaters at its plant in delaware, in order to meet expected global demand. to accomplish this, each laborer at the plant will work 200 hours per month. if the labor productivity at the plant is 0.25 hot water heaters per labor hour, how many laborers are employed at the plant? number of laborers employed by the plant = nothing laborers (round your answer to the nearest whole number).

Answers: 2

Answer

You know the right answer?

Suppose Blue Hamster Manufacturing Inc, is evaluation a proposed capital budgeting project (project...

Questions