Which is the right formula for B7? A B Year Cash Flows 0 (58,000) 1 18,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Which is the right formula for B7? A B Year Cash Flows 0 (58,000) 1 18,000 2 3 1 2345 6 WACC 7 Profitability Index 8 =NPV(B6,B3:B5)/B2 O=NPV(B6,B2:B5)/-B2 =NPV(B6,B3:B5)/-B2 35,000 50,000 12% ? C O =(NPV(B6,B3 B5)+B2)/B2+1 Which is the right formula for B7? A B Year Cash Flows 0 (58,000) 1 18,000 2 3 1 2345 6 WACC 7 Profitability Index 8 =NPV(B6,B3:B5)/B2 O=NPV(B6,B2:B5)/-B2 =NPV(B6,B3:B5)/-B2 35,000 50,000 12% ? C O =(NPV(B6,B3 B5)+B2)/B2+1
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The correct formula for B7 is NPVB6B3B5... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Dr. William Jones has been the director of the health center clinic at East-Southern Kentucky Community College (ESKCC) for about six months. Having been a part of a much larger medical center in the...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Given a byte-addressable memory with 256 bytes, suppose a memory dump yields the results shown below. The address of each memory cell is determined by its row and column. For example, memory address...
-
On January 15, Tundra Co. sold merchandise to customers for cash of $42,000 (cost $28,500). Merchandise costing $10,500 was sold to customers for $15,800 on January 17; terms 2/10, n/30. Sales...
-
1. Graciela, who is single, reported itemized deductions of $6,300 on her 2014tax return. Her itemized deductions included $200 of state taxes paid. In 2015, she received a $150 refund of state taxes...
-
Solar Ltd is a distributor of imported clothes and accessories. The following trial balance was extracted from its accounting records as at 31 December 2021. Trial Balance as at 31 December 2021 Dr...
-
At 1 January 20X5 Bridge Finance plc agreed to Finance the lease of machinery costing $37,200 to Rapid Growth plc at a lease cost of $10,000 per annum payable at the end of the year, namely 31...
-
On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment...
-
Let f(x)=-3 log3(x) f'(x) = 3 In (3)x 3 - f'(8) = In (24)
-
Imagine that you are Magna's new corporate controller and answer the following: 1. Describe Magna's strategy in terms of how it competes for customers. 2. Based on Magna's strategy and the data...
-
Under the competitive equilibrium assumption, the terminal value in the discounted abnormal earnings growth model is the present value of abnormal earnings in the terminal year times minus one,...
-
Consider your preferred method of wireless access. Why is this selection better than the others? Does your solution address security and risk concerns? Explain your reasoning.
-
Explain the motion of astronomical bodies using Newton's three laws of motion and his theory of gravity.(Briefly explain)
-
4. A 350-Ohm resistor is connected to a 30-V battery. How much energy is dissipated in the resistor in a minute (60 seconds)? 10 pts
-
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Annual cash inflows that will arise from two competing investment projects are...
-
The acceleration, in centimeters per second per second, of a projectile is modeled by A (t) = 2t3 - 15t2 + 36t, where t is measured in seconds. What is the projectile's maximum acceleration on the...
-
Bondage, discipline, dominance and submission, sadomasochism (BDSM) practices range from mild to wild. Although most people engage in relatively mild activities, should people be permitted to carry...
-
A researcher reports a significant two-way between-subjects ANOVA, F(3, 40) = 2.96. State the decision to retain or reject the null hypothesis for this test.
-
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $4,000. Total real estate taxes for the home are $950, and...
-
a. Wilson filed his individual tax return on the original due date, but failed to pay $700 in taxes that were due with the return. If Wilson pays the taxes exactly 2 months late, calculate the amount...
-
Calculate the amount of the child and dependent care credit allowed for 2012 in each of the following cases, assuming the taxpayers had no income other than the stated amounts. a. William and Carla...
-
Study the format of the analysis of variances in Exhibit 12-12. Suppose production is 156,000 units. Also assume the following: Other data are as shown in Exhibit 12-12. Prepare an analysis of...
-
The following questions are based on the data contained in Exhibit 12-9. 1. Suppose actual production and sales were 8,000 units instead of 7,000 units. (a) Compute the sales-volume variance. Is the...
-
Belfair Kayak Company makes molded plastic kayaks. Standards costs for an entry-level whitewater kayak are: Direct materials, 60 kilograms @ $5.50 per kilogram Direct labour, 1.5 hours $16 per hour...
Study smarter with the SolutionInn App