Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $15,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot
Cash flows during those four glorious years are estimated as follows:
Year Inflow Outflow
1 7,000 3,000
2 8,000 3,300
3 9,000 3,600
4 10,000 3,900
If the interest rate is 5%, what is the present value of the cattery project?
A) 2,756
B) 3,124
C) 2,983
D) 3,277
A
You might also like to view...
Find an article describing a legal dispute that a multinational corporation has had outside its home country. What is the legal tradition of the foreign company? What is the major legal issue of the dispute and is there a different understanding of that issue in the home country versus the foreign country?
What will be an ideal response?
One reason not to use visual aids in your presentation is that they
A) help the audience understand what you are saying. B) help you persuade your audience. C) bombard the senses. D) make you look professional. E) enhance audience interest.
A seller and buyer have just agreed that the buyer will purchase 1,000 of the widgets from the
thousands that the seller has in its warehouse. The buyer will pick them up at the seller's warehouse. The day before the buyer is to pick them up, the seller's employee sets the 1,000 widgets aside. What is the significance of setting the buyer's widgets aside? A) It constitutes identification. B) It terminates the buyer's ability to revoke. C) It fully discharges the seller's duties under the contract. D) It shifts the risk of loss to the buyer.
Compare podcasts and social games as social media opportunities for businesses. Why would you as a business owner choose one over the other? Which would be most appropriate if a company were looking to insert advertising?
What will be an ideal response?