Determine the five-year equivalent annual annuity of the following project if the appropriate
discount rate is 16%.
Initial Outflow = $150,000
Cash Flow Year 1 = $40,000
Cash Flow Year 2 = $90,000
Cash Flow Year 3 = $60,000
Cash Flow Year 4 = $0
Cash Flow Year 5 = $80,000
A) $7,058 B) $9,872 C) $9,454 D) $8,520
D
You might also like to view...
Carrying value is computed annually when a bond is issued for other than its face value. For a bond issued at a discount, how will this component change as the bond approaches maturity?
a. decrease b. increase c. remain constant d. not enough information given to decide
E&OE produces and markets its own brand of skincare products using herbal remedies and natural ingredients through standalone stores as well as an online portal. E&OE is a(n) ________ retailer
A) off-price B) specialty C) discount D) department E) extreme value
Transnational collaboration between unions typically includes all of the following except:
A. Public pressure campaigns and sympathy strikes B. Transnational collective bargaining C. Information-sharing D. Coordinated lobbying
After Michael, a minor aged sixteen, purchased a compact disc player from Rollins Electronics, he decided to return it. Before he got a chance to do so, his little brother smashed it with a hammer. In order to disaffirm the contract under the majority view, he
a. need only return the damaged compact disc player. b. must pay for any damage to the compact disc player. c. must pay for any depreciation to the compact disc player. d. must pay for any damage and pay for the use of the compact disc player.