Business, 24.11.2021 02:50 christine44gordon
Consider the cash flows on the following two timelines :
Timeline One: -210 105 105 105 105 0 1 2 3 4
Timeline Two: -210 130 130 130 0 1 2 3
The appropriate rate of return for the risks in both business opportunities is r = 9%. The IRR for Timeline One is 34.90%, while the IRR for Timeline Two is higher at 38.71%. The NPV for Timeline One is $130.17, while the NPV for Timeline Two is lower at $119.07. Why is the Net Present Value lower on the second transaction compared to the first transaction, even though the IRR on the second transaction is higher?
Answers: 2
Another question on Business
Business, 22.06.2019 01:00
In order to gauge public opinion about how to handle iran's growing nuclear program, a research group surveyed 1010 americans by telephone and asked them to rate the threat iran's nuclear program poses to the world on a scale of 1 to 10. describe the population, sample, population parameters, and sample statistics. identify the population in the given problem. choose the correct answer below.
Answers: 2
Business, 22.06.2019 21:20
Which of the following best explains why buying a house is more beneficial than renting? a. buying is a personal investment while renting involves giving money to the landlord. b. the monthly payments on a mortgage are generally lower than rent on an apartment. c. it's easier to sell a house than it is to get a landlord to break a rental agreement. d. housing prices can go up and down quickly in comparison to the level of rents.
Answers: 1
Business, 23.06.2019 02:50
Dakota company experienced the following events during 2016. 1. acquired $30,000 cash from the issue of common stock. 2. paid $12,000 cash to purchase land. 3. borrowed $10,000 cash. 4. provided services for $20,000 cash. 5. paid $1,000 cash for utilities expense. 6. paid $15,000 cash for other operating expenses. 7. paid a $2,000 cash dividend to the stockholders. 8. determined that the market value of the land purchased in event 2 is now $12,700
Answers: 1
Business, 23.06.2019 08:10
Suppose that in the year 2020 the price level in the fictional country of demet is 100, and the governement is considering
Answers: 2
You know the right answer?
Consider the cash flows on the following two timelines :
Timeline One: -210 105 105 105 105 0 1 2...
Questions
Biology, 30.11.2019 17:31
Mathematics, 30.11.2019 17:31
History, 30.11.2019 17:31
English, 30.11.2019 17:31
Business, 30.11.2019 17:31
Mathematics, 30.11.2019 17:31
English, 30.11.2019 17:31
