A firm is considering projects s and l, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The ceo wants to use the irr criterion, while the cfo favors the npv method. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose?.

Answers

Answer 1

If the wrong discion criterion is used, the potential lose in value for the firm is $209.07.

What is the correct decision criterion?

The  correct decision criterion is the net present value. Net present value is the present value of after-tax cash flows from an investment less the amount invested. The internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

What is the loss in value if the wrong decision criteria is used?

The net present vaue and the internal rate of return can be calculated using the financial calcuator.

Project S:

Cash flow in year 0 = $-1025Cash flow each year from year 1 to 4 = $380

I = 6%

NPV = 291.74

IRR = 17.86%

Project I:

Cash flow in year 0 = $-2150

Cash flow each year from year 1 to 4 = 765

I = 6%

NPV = 500.81

IRR = 15.78%

If the wrong criteria is used, Project S would be chosen.

Loss in value = 500.81 - 291.74 = $209.07.

Here are the cash flows used:

WACC: 6.00%

Year 0 1 2 3 4

CF S -$1,025 $380 $380 $380 $380

CF I -$2,150 $765 $765 $765 $765

To learn more about net present value, please check: https://brainly.com/question/25748668


Related Questions

Come and get Brainliest!!!
A rectangle has sides measuring (2x + 7) units and (5x + 9) units.

Part A: What is the expression that represents the area of the rectangle? Show your work. (4 points)

Part B: What are the degree and classification of the expression obtained in Part A? (3 points)

Part C: How does Part A demonstrate the closure property for polynomials? (3 points)

Answers

Answer:

A: 10x^2 +53x +63   B: degree 2; quadratic trinomial  C: the result of the multiplication of polynomials is a polynomial

Step-by-step explanation:

Part A:

The area is the product of length and width. The distributive property is useful for simplifying the expression.

 A = LW

 A = (2x +7)(5x +9) = 2x(5x +9) +7(5x +9)

 A = (10x^2 +18x) +(35x +63)

 A = 10x^2 +53x +63 . . . . area expression

Part B:

The highest power of x is 2. There are 3 terms. A degree-2 polynomial is called a "quadratic." A 3-term polynomial is called a "trinomial."

degree 2

quadratic trinomial

Part C:

In part A we multiplied two polynomials and came up with a result that is a polynomial. This suggests polynomials are closed with respect to multiplication.

I hope this helps!!

For large A restaurant at a 15% service charge to the bill how much would be added to a bill of 638. 40

Answers

Answer:

15% of 638.40 = 95.76

638.40 + 95.76

= 734.16

Step-by-step explanation:

can someone please answer this?

Answers

to answer this one, were gonna need the answer choices :)

59) You are given the equation y=24+3x

a. Make up a story that matches the equation

Answers

Answer: y can be equal to the gym membership fee you pay for 4 months If $24 is the month 1 deposit and × is the fixed charges for subsequent months.

Step-by-step explanation: Month 1: y=24

month 2:y=24+×

Month Month3: y= 24+2×

Month 4:y=24+3×

What is the area of the triangle that has a base of 15 1/4 and a hight of 18

Answers

Answer:

137.25 units²

Step-by-step explanation:

A = bh/2

A = (15.25)(18)/2

A = 274.5/2

A = 137.25 units ²

I hope this helps!

AWNSER PLEASEEEEEEEEEEEEEEEEEE

Answers

Answer:

<-1,-7>

Step-by-step explanation:

You move the z line so it goes southwest instead of northeast, since you are subtracting it. The x range is 8 and y range is 2, so count it from 4,-4. 8 points to left and 2 points down.

Please help me with this problem, I’ll mark you as Brainly!

Answers

Answer:

For no values of x.

Step-by-step explanation:

A function is increasing when its graph is sloping upwards.

Conversely, a function is decreasing when its graph is sloping downwards.

From the given graph, we can see that it is sloping downwards at all x values. In other words, it is always decreasing and never increases.

Therefore, for no values of x is the graph increasing.

Nicole is on her way home in her car. She has driven 10 miles so far, which is one-half of the way home. What is the total length of her drive?

Answers

Answer:

20 miles

Step-by-step explanation:

10 x 2 = 20

10 miles is half the drive so you'd just multiply it by 2 and that would be the full amount of miles home.

Answer:

The total length of Nicol’s drive would be 20 miles.

If The first half of her trip takes 10 miles then the second half would have an equal number of miles. 10x2=20

You would use 10 two times because 1/2+1/2=1.

Therefore the total amount of miles Nicole will travel will be 20.

question is in the image below

Answers

The answer is c I think. Just a quick guess

The bus will leave in 7 minutes. what time will it leave?

Answers

Answer:

1:52

Step-by-step explanation:

The clock reads 1:45 so simply add 7 minutes to that

Answer: 7 minutes

Step-by-step explanation:

The answer is in the first statement :)

Solve the system of equations.

7x – y = 7
7x2 – y = 7

(0, 7) and (0, –7)
(1, 0) and (0, –7)
(3, 14) and (0, –7)
(4, 14) and (–1, 10)

Answers

Answer:

2nd option

Step-by-step explanation:

7x - y =  7 ( multiply through by - 1 )

- 7x + y =- 7 ( add 7x to both sides )

y = 7x - 7 → (1)

7x² - y = 7 → (2)

substitute y = 7x - 7 into (2)

7x² - (7x - 7) = 7 ← distribute parenthesis on left side

7x² - 7x + 7 = 7  ( subtract 7 from both sides )

7x² - 7x = 0 ← in standard form

7x(x - 1) = 0 ← in factored form

equate each factor to zero and solve for x

7x = 0 ⇒ x = 0

x - 1 = 0 ⇒ x = 1

substitute these values into (1) for corresponding values of y

x = 0 : y = 7(0) - 7 = 0 - 7 = - 7 ⇒ (0, - 7 )

x = 1 : y = 7(1) - 7 = 7 - 7 = 0 ⇒ (1, 0 )

Answer:

B. (1, 0) and (0, –7)

Step-by-step explanation:

I took the algebra exam

What is the mode of this data set

{2, 2, 3, 3, 4, 4, 4, 4,}

Enter your answer in the box.

Answers

4 it’s asking for the most common

Answer:

4

Step-by-step explanation: 2 shows 2 times.  3 shows 2 times. 4 shows 4 times. So 4 is more common than the others.  So your answer would be 4

At a bag sale, the total amount of money collected from the sales was $12 150. The number of Bag P and Bag Q sold were in the ratio of 5 : 2. The number of Bag Q and Bag R sold were in the ratio of 3 : 4. The cost of Bag P was $50. The ratio of the cost of Bag P to the cost of Bag Q to the cost of Bag R was 1 : 3 : 6. What was the total number of bags sold at the sale?​

Answers

Answer:

so basiclly a monkey can not turn into a monkey so they are real monkeys

Step-by-step explanation:

The equation d = startfraction 13 over v endfraction shows that the density of a particular substance equals a mass of 13 grams divided by the volume of the substance. what happens to the density as the volume approaches 0? the density approaches infinity. the density approaches 0. the density approaches 1. the density approaches 13.

Answers

Answer:

  (a) the density approaches infinity

Step-by-step explanation:

As with any inverse relation, when one variable gets smaller, the other gets larger.

When the volume approaches zero, the density approaches infinity.

Answer:

its A

Step-by-step explanation:

Which is a solution to (x − 2)(x 10) = 13? x = 3 x = 8 x = 10 x = 11

Answers

The solution of the given expression  (x − 2)(x 10) = 13 are x=3 or x=-11. So the option A is correct.

What is a quadratic equation?

A quadratic equation is the second-order degree algebraic expression in a variable. the standard form of this expression is ax² + bx + c = 0 where a. b are coefficients and x is the variable and c is a constant.

(x-2)(x+10) = 13

Subtract 13 from both sides

x²+8x-20-13=13-13

x²+8x-33=0

Factorized

(x-3)(x+11)=0

x-3=0 or x+11= 0

x=3 or x=-11

Thus, The answer is A

Learn more about quadratic equations;

brainly.com/question/13197897

Answer:

A) 3

Step-by-step explanation:

Math
Please answer the question please and thank you.

Answers

Answer:

The answer is Cubic Meter

A. Set B is an exponential function and the values increase at a faster
rate than Set A.
B. Set A is a linear function and the values increase at a faster rate
than Set B.
O C. Set A is a linear function and the values increase at the same rate
as Set B.
D. Set B is an exponential function and the values increase at the
same rate as Set A.

Answers

Answer:

A is the correct answer

Step-by-step explanation:

The reason is that in set B, you are multiplying by 5 at each step, in set A you are adding 25 at each step which is clearly slower. to check this out try to determine the 10th value of the two functions

Expressions equivalent to 16x+12

Answers

Answer:

-4/3 or -1 1/3

Step-by-step explanation:

16x+12=0

16x=-12

x=16/-12

LCD of (2/x^2) - (7/4x^2+12x)?

Answers

Answer:

4x³ + 12x²

Step-by-step explanation:

I assume the denominators are x² and 4x although that is not what you wrote.

x² = x² (already factored)

4x² + 12x = 4x(x + 3)

LCD = 4 × x² × (x + 3)

LCD = 4x³ + 12x²

Last year, Allison paid a monthly cooperative maintenance fee of $873. 12% of this fee
covered her monthly property taxes. How much did she pay last year in property taxes on
her co-op?

Answers

12% of $873 is $104.76. She payed $104.76 per month and if you multiply that by 12 (the number of months in a year) it gives you $1257.12 for the year so she paid that much last year

Need help!! This is due before 1:00 please help ASAP!!! Will give brainliest!!

Answers

Answer:

7. 22 2/5   8. 10 8/10

Step-by-step explanation:

7. 7x3=21 + 7x1/5= 22 2/5

8.  2x5=10 + 2x4/10= 10 8/10

Please Help me !! Its a Math problem * i will give brainlist Three functions are shown in the table Which of the functions represents a linear function? Explain.

Answers

Answer: The answer is B.

Step-by-step explanation:

What workshops and seminars are featured on April 20th for Chinese Language Day

Answers

Answer:

How to Celebrate Chinese Language Day.

Celebrate Chinese Language Day by trying to learn Chinese! Online programs or colleges courses can give you plenty of opportunities to learn the Chinese language in all of its complexities.

If you know Chinese, then put it on your resume and try and use it in your work to see what connections you can make with others. I hope I could help

PLSSS HELP IF YOU TURLY KNOW THISS

Answers

5/4 or 1 1/4

rewrite 5 as 5/1 and then multiply 5/1 by 1/4

(5*1)/(1*4) = 5/4 = 1 1/4

Answer: Hiya!

Simplify the expression.

Step-by-step explanation:

Mixed Number Form:

✓ 1 1/4

Exact Form:

✓ 5/4

Hopefully this helps!

- Matthew <3

A home appraisal company would like to develop a regression model that would predict the selling price of a house based on the age of the house in years (Age), the living area of the house in square feet (Living Area) and the number of bedrooms (Bedrooms). The following Excel output shows the partially completed regression output from a random sample of homes that have recently sold. The predicted selling price for a home that is 12 years of age, has 2,500 square feet of living area, and has four bedrooms is ________

Answers

The regression solved shows that the predicted selling price for a home that is 12 years of age is $443747.

How to compute the value of the home?

From the complete information, the regression equation is given as:

y = 108597.37 - 580.687 × age + 86.82 × living areas + 31261.9127 × bedroom

Therefore, the predicted selling price will be:

= 108597.37 - 580.687 × 12 + 86.82 × 2500 + 31261.9127 × 4

= $443747

In conclusion, the selling price is $443747.

Learn more about regression on:

https://brainly.com/question/25987747

Convert the following into metres.
A- 22cm
B- 180km
C-300mm

Answers

A) 22cm

( divide the length value by 100)

22/100 which gives you:

=0.22m

B) 180km

( multiply the length value by 1000)

180×+100 which gives you:

=180000m

C) 300mm

( divide the length value by 1000)

300/1000 which gives you:

=0.3m

1)
22÷100
=0.22m

2)
180×100
=180000

3)
300÷1000
=0.3m

What is 29x125x317=
???Help

Answers

Answer:29x ^442

Step-by-step explanation:

Answer:

1149125

Step-by-step explanation:

29x125x317

=29*x125*x317

=29*x442

=29x442

Who ran farther by the end of the week how much farther use the table below that shows the distances in miles

Answers

Answer:

Yu ran farther by the end of the week.

Step-by-step explanation:

Fraction addition

[tex]\sf \text{Total distance ran by Holy= $1\dfrac{1}{2}+\dfrac{1}{2}+2\dfrac{1}{4}+\dfrac{3}{4}+1\dfrac{1}{2}$}[/tex]

                   Convert mixed fractions to improper fractions

                                        [tex]\sf =\dfrac{3}{2}+\dfrac{1}{2}+\dfrac{9}{4}+\dfrac{3}{4}+\dfrac{3}{2}\\\\ = \dfrac{3}{2}+\dfrac{1}{2}+\dfrac{3}{2}+\dfrac{9}{4}+\dfrac{3}{4}\\\\=\dfrac{7}{2}+\dfrac{12}{4}\\\\=\dfrac{7*2}{2*2}+\dfrac{12}{4}\\\\=\dfrac{14}{4}+\dfrac{12}{4}\\\\=\dfrac{14+12}{4}\\\\=\dfrac{26}{4}\\\\=\dfrac{13}{2}\\\\=6\dfrac{1}{2} \ miles[/tex]

[tex]\sf \text{Distance travelled by Yu=1\dfrac{3}{4}+1\dfrac{1}{2}+2\dfrac{3}{4}+1\dfrac{1}{4}+\dfrac{1}{2}}[/tex][tex]\sf \text{Distance traveled by Yu= $1\dfrac{3}{4}+1\dfrac{1}{2}+2\dfrac{3}{4}+1\dfrac{1}{4}+\dfrac{1}{2}$}[/tex]

                                      [tex]\sf = \dfrac{7}{4}+\dfrac{3}{2}+\dfrac{11}{4}+\dfrac{5}{4}+\dfrac{1}{2}\\\\ =\dfrac{(7+11+5)}{4}+\dfrac{3+1}{2}\\\\= \dfrac{23}{4}+\dfrac{4}{2}\\\\=\dfrac{23}{4}+\dfrac{4*2}{2*2}\\\\=\dfrac{23}{4}+\dfrac{8}{4}\\\\=\dfrac{31}{4}\\\\=7\dfrac{3}{4} \ miles[/tex]

Yu ran farther by the end of the week.

                     


The area of a triangle is 106 square feet. The base is twice the height. Find the height.

Answers

Answer:

The height is [tex]\sqrt{106}[/tex] feet

Step-by-step explanation:

First, lets assign and categorize the information given to us:

Area = 106 [tex]ft^{2}[/tex]

b = 2h (Base is twice the height)

Next, lets look at the formula for the area of a triangle:

Area = [tex]\frac{1}{2} bh[/tex]

Then, lets substitute the given information and solve:

106 = [tex]\frac{1}{2}[/tex] * 2h * h
106 = [tex]h^{2}[/tex]
[tex]\sqrt{106}[/tex] feet = h

PLS HELP FAST !!!
The chart below shows the results of survey taken by a movie theater. The theater asked what genre the mover goers preferred to see. If the theater owner asked 100 people, how many people would prefer Drama? Round to the nearest whole number

Answers

Answer: Hence the cost of operating theater if there are 100 people at a show is 20,000Rs.

Step-by-step explanation:

Theater is a place where the movies are shown in big screens and Speakers are used for the clear audio of the movie.

In a theater there will be 3 to 4 shows for a movie or different movie.

Theater can consist of 250 - 300 seats and can cost up to 250rs for a seat.

Consider a ticket cost of 200rs. For 100 people in a show ,

                              Cost = 200 × 100

                               Cost = 20,000.

Hence the cost of operating theater if there are 100 people at a show is 20,000Rs.

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