Business, 20.07.2021 23:20 cjustiniano705

Corporation ABC invested in a project that will generate $60,000 annual after-tax cash flow in years 0 and 1 and $40,000 annual after-tax cash flow in years 2, 3, and 4. Compute the NPV of these cash flows assuming that: a. ABC uses a 10 percent discount rate.
b. ABC uses a 7 percent discount rate.
c. ABC uses a 4 percent discount rate.

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Answer from: lujaynsparkles

a. $204,940

b.$214,180

c. $224,480

Explanation:

a. Computation for the NPV of these cash flows assuming that ABC uses a 10 percent discount rate.

NPV= $60,000 + 0.909($60,000) + 0.826($40,000) + 0.751($40,000) + 0.683($40,000)

NPV=$60,000+$54,540+$33,040+$30,040+$27,320

NPV = $204,940

Therefore the NPV of these cash flows assuming that ABC uses a 10 percent discount rate is $204,940

b. Computation for the NPV of these cash flows assuming that ABC uses a 7 percent discount rate.

NPV=$60,000 + 0.935($60,000) + 0.873($40,000) + 0.816($40,000) + 0.763($40,000)

NPV=$60,000+$56,100+$34,920+$32,640+$30,520

NPV= $214,180

Therefore the NPV of these cash flows assuming that ABC uses a 7 percent discount rate is $214,180

c. Computation for the NPV of these cash flows

assuming that ABC uses a 4 percent discount rate.

NPV=$60,000 + 0.962($60,000) + 0.925($40,000) + 0.889($40,000) + 0.855($40,000)

NPV=$60,000+$57,720+$37,000+$35,560+$34,200

NPV= $224,480

Therefore the NPV of these cash flows

assuming that ABC uses a 4 percent discount rate is $224,480

Answer from: Quest

corrosion is a natural process, which converts a refined metal to a more chemically-stable form, such as its oxide, hydroxide, or sulfide. it is the gradual destruction of materials (usually metals) by chemical and/or electrochemical reaction with their environment.

explanation:

Answer from: Quest

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

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