{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T07:03:34-04:00", "answer_date": "2024-05-27 07:03:34", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1784051", "url": "\/study-help\/questions\/-1784051", "question_creation_date_js": "2024-05-27T07:03:34-04:00", "question_creation_date": "May 27, 2024 07:03 AM", "meta_title": "[Solved] Buena Vision Clinic is considering an inv | SolutionInn", "meta_description": "Answer of - Buena Vision Clinic is considering an investment that requires an outlay of $600,000 and promises a net cash inflow on | SolutionInn", "meta_keywords": "buena,vision,clinic,investment,requires,outlay,$600,000,promises,net,cash,inflow,one", "question_title_h1": "Buena Vision Clinic is considering an investment that requires an outlay of $600,000 and promises a net cash inflow one year from now of $810,000.", "question_title": "Buena Vision Clinic is considering an investment that requires an outlay of", "question_title_for_js_snippet": "Buena Vision Clinic is considering an investment that requires an outlay of $600,000 and promises a net cash inflow one year from now of $810,000 Assume the cost of capital is 10 percent Required 1 Break the $810,000 future cash inflow into the three components shown below Enter all your answers as positive amounts a The return of the original investment b The cost of capital c The profit earned on the investment 2 Now, compute the present value of the profit earned on the investment 3 Compute the NPV of the investment ", "question_description": "

Buena Vision Clinic is considering an investment that requires an outlay of $600,000 and promises a net cash inflow one year from now of $810,000. Assume the cost of capital is 10 percent.<\/p>

<\/p>

Required:<\/strong><\/p>

1. <\/strong>Break the $810,000 future cash inflow into the three components shown below. Enter all your answers as positive amounts.<\/p>

a. The return of the original investment<\/td> <\/td> <\/tr>
b. The cost of capital<\/td> <\/td> <\/tr>
c. The profit earned on the investment<\/td> <\/td> <\/tr> <\/tbody><\/table><\/figure>

2. <\/strong>Now, compute the present value of the profit earned on the investment. <\/p>

3. <\/strong>Compute the NPV of the investment. <\/p>", "transcribed_text": "", "related_book": { "title": "International Accounting", "isbn": "978-0136111474, 0136111475", "edition": "7th Edition", "authors": "Frederick D. Choi, Gary K. Meek", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/127.jpg", "uri": "\/textbooks\/international-accounting-7th-edition-9780136111474", "see_more_uri": "" }, "free_related_book": { "isbn": "B00B79GWMS", "uri": "\/textbooks\/constructive-geometry-of-plane-curves-with-numerous-examples-1st-edition-b00b79gwms-156083", "name": "Constructive Geometry Of Plane Curves With Numerous Examples", "edition": "1st Edition" }, "question_posted": "2024-05-27 07:03:34", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/patients-who-undergo-chronic-hemodialysis-often-experience-severe-anxiety-videotapes", "description": "Patients who undergo chronic hemodialysis often experience severe anxiety. 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