Answer:
Kindly see explanation
Explanation:
Given the following:
Initial investment = $8,000,000
Future value (FV) = $10,000,000
PERIOD (t) = 5 Years
To know if the form should undertake the project, the present value(PV) at each interest rate should be calculated ;
A.) Interest rate (r) = 7% = 0.07
PV = FV / (1 + r)^t
PV = 10,000,000 / (1 + 0.07)^5
PV = 10,000,000 / 1.07^5
PV = 10,000,000 / 1.4025517307
PV = $7,129,861.79483668
Should not be undertaken, PV is less than initial investment.
B.) Interest rate (r) = 6% = 0.06
PV = FV / (1 + r)^t
PV = 10,000,000 / (1 + 0.06)^5
PV = 10,000,000 / 1.06^5
PV = 10,000,000 / 1.3382255776
PV = $7,472,581.72866057
Should not be undertaken, PV is less than initial investment.
C.) Interest rate (r) = 5% = 0.05
PV = FV / (1 + r)^t
PV = 10,000,000 / (1 + 0.05)^5
PV = 10,000,000 / 1.05^5
PV = 10,000,000 / 1.2762815625
PV = $7,835,261.66468459
Should not be undertaken, PV is less than initial investment
D.)Interest rate (r) = 4% = 0.04
PV = FV / (1 + r)^t
PV = 10,000,000 / (1 + 0.04)^5
PV = 10,000,000 / 1.04^5
PV = 10,000,000 / 1.2166529024
PV = $8,219,271.06759351
Should be undertaken, PV is greater than initial investment
The firm should undertake the project for each of the interest rates listed for Undertake Project :
A) 7% is No.
B) 6% is No.
C) 5% is No.
D) 4% is Yes.
Undertake ProjectGiven:
Initial investment = $8,000,000
Future value (FV) = $10,000,000
PERIOD (t) = 5 Years
Part A:Initial investment = $8,000,000
Future value (FV) = $10,000,000
Time (t) = 5 Years
Interest rate (r) = 7% = 0.07
Present Value =PV[tex]PV = FV / (1 + r)^t[/tex]
PV =[tex]10,000,000 / (1 + 0.07)^5PV = 10,000,000 / 1.07^5[/tex]
PV = [tex]10,000,000 / 1.4025517307[/tex]
PV = [tex]$7,129,861.79483668.[/tex]
Thus, the project should not be undertaken as the present value is less than initial investment.
Part B:
Initial investment = $8,000,000
Future value (FV) = $10,000,000
Time (t) = 5 Years
Present Value =PV
Interest rate (r) = 6% = 0.06[tex]
PV = FV / (1 + r)^t[/tex]
PV = [tex]10,000,000 / (1 + 0.06)^5[/tex]
PV =[tex]10,000,000 / 1.06^5[/tex]
PV = [tex]10,000,000 / 1.3382255776[/tex]
PV = [tex]$7,472,581.72866057[/tex]
Thus, the project should not be undertaken as the Present value is less than initial investment.
Part C:
Initial investment = $8,000,000
Future value (FV) = $10,000,000
Time (t) = 5 Years
Present Value =PV
Interest rate (r) = 5% = 0.05[tex]
PV = FV / (1 + r)^t[/tex]
PV =[tex]10,000,000 / (1 + 0.05)^5[/tex]
PV =[tex]10,000,000 / 1.05^5[/tex]
PV = [tex]$7,835,261.66468459[/tex]
Thus, the project should not be undertaken as the Present value is less than initial investment.
Part D:
Initial investment = $8,000,000
Future value (FV) = $10,000,000
Time (t) = 5 Years
Present Value =PV
Interest rate (r) = 4% = 0.04
PV = FV / (1 + r)^t[/tex]
PV = [tex]10,000,000 / (1 + 0.04)^5[/tex]
PV = [tex]10,000,000 / 1.04^5[/tex]
PV = [tex]10,000,000 / 1.2166529024[/tex]
PV = [tex]$8,219,271.06759351[/tex]
Thus, the project should be undertaken as the Present Value is greater than initial investment.
Thus, the correct option is D.
Learn more about "Present Value":
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CAN ANYONE HELP ME? TRUE OR FALSE Even if there is a mistake in a written contract, courts may never reform the contract because the parties signed the agreement.
The following sentence has a mistake.
It is very importtant to proofread all documents carefully.
To fix this mistake, you should
put the cursor after the word "mistake" and add a comma
place the cursor after the first "t" in "important" and press Delete
O place the cursor before the word "important," press Delete, and type a capital "T"
o place the cursor after the word "carfully," press Backspace five times, and type an "e"
The correct answer is B. Place the cursor after the first "t" in "important" and press Delete
Explanation:
The sentence "It is very importtant to proofread all documents carefully" has a spelling mistake; this means one of the words in the sentence is not written correctly. This word is "importtant" because according to language conventions this word is written as "important"; therefore the first "t" should be deleted. Besides this, other words are written correctly and the general sentence is grammatically correct. Thus, to correct the sentence "place the cursor after the first "t" in "important" and press Delete.
Answer:mark him brainliest
Explanation:
Find the coefficient of variation (to the nearest tenth percent) of the following (1,2,3,4,5).
Answer:
52.7%
Explanation:
Coefficient of variation= [tex]\frac{standard deviation}{mean}[/tex] times 100%
= [tex]\frac{1.58113883}{3}[/tex] times 100%
= .5270462767 times 100%
= 52.704627667
Which rounded to the nearest tenth percent is 52.7%
Answer:
Idk but try looking up stuff have a nice e day
QUESTIONS
Which of the following factors will have the greatest impact on your credit score? I. Length of Credit History II. Payment History
III. Amounts Owed IV. Types of Credit Used
-
D
&
11
B.
11
&
TIL
-
C
&
M
D
II
&
IV
berete to search
7301
6/2572
Answer:
11) payment history ; 111) Amounts owed
Explanation: An individual's credit score is of great importance in determining if a person should be given a loan or not. The credit score is reliant on factors such as ; the level of debt or amount owed by the account owner and the repayment history of the individual. These information are used to enable the borrower qualify for a loan while also providing the lender requisite information in evaluating if the borrower is credit worthy. An individual with a poor and untimely debt repayment history coupled with a high debt value will have a low credit score thereby hampering such individual's chances of qualifying for a loan. Similarly, borrowers with good and timely repayment history and devoid of debt may have higher chances of qualifying for more robust and long term loans.
How would you make marketing better
Answer:
In my opinion to make marketing better,Firstly, I would provide the consumers with a variety of goods to choose from because a lot of people tend to be indecisive.Secondly I would provide authentic and unique products.
Explanation:
Hope this helps
If Nadia is wondering about the best way to get her metal sculpted art into a customer's hands, what area of the marketing mix does she need to consider?
price
place
promotion
Answer:
place
Explanation:
If it is in the right location like an art store then somebody will intentionally buy it because it is at an art store and it is art
HOW CAN I RE-WORD THIS? Yes, I think that the facts satisfy the requirements for an implied contract. Alfaro, who was a representative of Taco Bell, met with the creators of Psycho Chihuahua and talked to them about using the dog as Taco Bell’s “icon.” Then, when Taco Bell and Wrench couldn’t come to terms with each other, Alfaro still used Psycho Chihuahua as the icon for the company. Then, when Taco Bell hired a new marketing agency to take over, Alfaro sent over all the material on Psycho Chihuahua and magically, Taco Bell’s new marketing campaign includes a Chihuahua.
Answer:
i don't think so
Explanation:
i got that answer because its like a summary it has all the details and it doesnt have anything that is unnecessary. so to me it looks good
What do disability insurance and life insurance have in common?
A.
Both are provided by your employer at the employer’s expense.
B.
Both charge the same amount for the policy premium.
C.
Both cover an unexpected loss of income.
D.
Both cover beneficiaries in the event of your death.
Answer:
A. Both are provided by your employer at the employer’s expense.
Explanation:
Disability insurance is a type of insurance that covers a worker providing a source of income in an event that the worker would not be able to continue work as a result of a disability. Employers usually offer disability insurance for their employees.
Life insurance is a type of insurance in which the insurance company pays a beneficiary a death benefit upon the death of an insured person. Employers usually offer disability insurance for their employees.
Which statement describes qualitative research accurately? Question 3 options: Gathering research data that can be quantified and measured Gathering research data through surveys gathering data by asking questions such “how much? “ or “how many?” All of the above
Answer: Gathering research data through surveys by asking questions such as “how much? “ or “how many?”
Explanation: Qualitative research methods include interviews, surveys, etc. It is not based upon numerical data, and it is unstructured. Quantitative research is the systematic empirical investigation of observable phenomena via statistical, mathematical, or computational techniques.
Make sure to mark this as brainliest if I helped!
Have a great day :)
What is job application? How can you find a job application?
A job application is a formal request made by an individual seeking employment with a company or organization. It typically includes personal information, work history, education, skills, and references.
Job applications can be found in several ways:Online: Visit the company's website and navigate to the "Careers" or "Jobs" section to find application forms.
Job search websites: Websites like Indeed, LinkedIn, or Glassdoor offer job listings with direct links to online applications.
In-person: Some employers provide physical application forms at their premises.
Completing a job application is the first step in the hiring process and allows employers to evaluate candidates for potential interviews and job offers.
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Textbooks, transportation and room and board are all...
usually offered to students who stay on campus.
included in the price of attending a college or
university.
additional costs for attending a college or university.
included in a school's tuition.
What’s the answer
Answer:
additional costs for attending a college or university
Explanation:
:)
Answer:
additional costs for attending a college or university
Explanation:
Why should you treat savings as an expense in your budget?