The following cash flow has no positive interstate. The project, which had a projected life of 5
Question:
The following cash flow has no positive interstate. The project, which had a projected life of 5 years, was terminated early.
Year Cash Flow
0...................................-$50
1....................................+20
2....................................+20
There is, however, a negative interest rate. Compute its value.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (19 reviews)
The compound interest tables are for positive interest rates and are not useful here Tables could ...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
The following cash flow has no positive interest rate. The project, which had a projected life of 5 years, was terminated early. Year Cash Flow 0...................-$50 1....................+20...
-
Compute the rate of return for the following cash flow to within 0.5%. Year Cash Flow 0.................-$640 1......................0 2...................100 3...................200...
-
Compute the rate of return for the following cash flow to within 1/2%. Year Cash Flow 0...................-$100 1-10..................+27
-
a1a2 (d) Suppose a Cobb Douglass production function with two inputs and exponents inside the production function y = xx22 that are less than one. Derive the profit maximizing choices of x1, x2, andy...
-
(a) use the zero or root feature of a graphing utility to approximate the zeros of the function accurate to three decimal places, (b) determine the exact value of one of the zeros, and (c) use...
-
Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: a. MC(L) = 10 + 2L....
-
What is the cost of capital equal to?
-
The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is...
-
6.(10) Scores on a standard IQ test are normally distributed with mean 100 and standard deviation 15. Use the Empirical Rule and make a sketch for each problem. What percent of the population have...
-
Given the following matrix that is 3x3, B = |2-1-1| |-121| 1022| find: a) adj(B) b) Badj(B) c) det(B) d) B-1
-
A firm invested $15,000in a project that appeared to have excellent potential unfortunately, a lengthy labor dispute in Year3 resulted in costs that exceeded benefits by $8000. The cash flow for the...
-
For the following cash flow, compute the rate of return. Year Cash Flow 0.................................-$20 1.......................................0 2....................................-10...
-
Find the covariance of the random variables A' and Y of Exercise 3.39.
-
Second Company has three service departments, Administration, Communications and Facilities, and two production departments, Deposits and Loans. A summary of costs and other data for each department...
-
Sulu Inc. has provided the following data to be used in evaluating a proposed investment project (assume that straight line method of depreciation is used, and the same method is used for tax...
-
Assume the following for a firm that will operate for only four years. Year Zero: Capital Investment = $10M and build up operational NWC = $2M; Years 1-4: NI = $7M, Depreciation = $2M, Interest...
-
Nana Kay Ltd is a multiproduct firm. The revenues of a single product, Germ-D, are GH200,000 when 10,000 units are sold. Variable costs are GH16 per unit. Direct fixed expenses of GH25,000 consists...
-
On a particular day, a restaurant that is open for lunch and dinner had 176 customers. Each customer came in for one meal. An employee recorded at which meal each customer came in and whether the...
-
Can you identify leaders who are good role models in our society? Do they use the same protocols as health care leaders?
-
Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not think the company is financially capable of making the periodic interest payments...
-
Find f. f"(x) = 2 + x 3 + x 6
-
A local telephone company is considering installing a new phone line for a new row of apartment complexes. Two types of cables are being examined: conventional copper wire and fiber optics....
-
A small manufacturing firm is considering purchasing a new boring machine to modernize one of its production lines. Two types of boring machines are available on the market. The lives of machine A...
-
The management of Langdale Mill is considering replacing a number of old looms in the mill's weave room. The looms to be replaced are two 86-inch President looms, sixteen 54-inch President looms, and...
-
Fishing Tours Ltd. is a 75% owned subsidiary of Boat Rentals Ltd. On January 1, 2012, Fishing Tours sold a boat to Boat Rentals Ltd. for $80,000, recognizing a gain of $30,000. Boat Rentals...
-
Borrowed 100000 from the bank by signing a $104000 six month non interest bearing noteA) Do assets increase, decrease, or is there no effect?B) Do Liabilities increase, decrease, or is there no...
-
Kandis Plc Ltd. pays an hourly labor rate of $17.20 in the production of its boom boxes. EPrestwich Company has budgeted production for next year as follows: Picture Two pounds of material A are...
Study smarter with the SolutionInn App