Question

Which one of the following would have the greatest net present value? Select one: O a. $1,000 today plus $200 a month for a year O b. $2,200 today plus $200 a month for six months O c. $1,000 today plus $100 a month for 2 years Od. $1,000 today plus $400 a month for six months e. $2,200 today plus $100 a month for a year
0 0
Add a comment Improve this question Transcribed image text
Answer #1

b.$2,200 today plus $200 a moth for six months

As the NPV of the above mentioned option is higher than all other options

Add a comment
Know the answer?
Add Answer to:
Which one of the following would have the greatest net present value? Select one: O a....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Question 13 which project in Question 12 would you select based on the net present capital...

    Question 13 which project in Question 12 would you select based on the net present capital is 12%? select based on the net present value method if your cost of Question 14 unshine Love Company is considering two mutually exclusive projects, one with ther 6-year life. The after-tax cash flows from the two projects are as follows: Year Project A (RM) Project B (RM) (400,000) (400,000) NOV 162,000 120,000 162,000 120,000 162,000 120,000 162,000 120,000 120,000 120,000 tahunxcama a Assuming...

  • 12. Present value of annuities and annuity payments Aa Aa The present value of an annuity...

    12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six mońths O An annuity that pays $1,000 at the...

  • 7. Present value of annuities and annuity payments Aa Aa The present value of an annuity...

    7. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each...

  • You have the opportunity to invest in several annuities. Which of the following 10-year annuities has...

    You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...

  • Which cash flow has the greatest present value if your discount rate is 9.5%? A) A...

    Which cash flow has the greatest present value if your discount rate is 9.5%? A) A lump sum payment of $10,000 today B) A lump sum payment of $25,000 at the end of 10 years C) A perpetual stream of annual payments starting at $500 in one year and increasing at 5% per year thereafter D) A perpetual stream of annual parents of $1,000 starting in one year

  • 2. Present Value. Which of the following two options would you prefer assuming an effective annual...

    2. Present Value. Which of the following two options would you prefer assuming an effective annual discount rate of 8%? (a) 8100 today and S100 next year (b) $100 next year and $200 in ten years

  • 9. Present value of annuities and annuity payments Aa Aa The present value of an annuity...

    9. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the beginning of every six months O An annuity that pays $500 at the...

  • 8. Present value of annuities and annuity payments The present value of an annuity is the...

    8. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the areatest present value (pV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $1,000 at the end of each year O An annuity that pays $1,000 at the beginning of each...

  • Ruby will receive 12 payments of $X every six months, beginning six months from today. If...

    Ruby will receive 12 payments of $X every six months, beginning six months from today. If the present value of all 12 payments is $3670, find the payment amount $X, given an effective annual interest rate of 9%. Select one: a. $490 O b. $400 c. $275 OOO o d. $325 e. $530 O Today, Sohla made a $1200 investment, which will pay 15% annual interest. How much MORE money will she have after seven years, if she earns compound...

  • Assume a project currently has a negative net present value. Which one of these expectations would...

    Assume a project currently has a negative net present value. Which one of these expectations would indicate that the timing option for that project may have a positive value? The project's cash flow projections are expected to remain constant over time. The life of the project's product is expected to decrease each year. The demand for the project's product is expected to decrease within 6 months. Competition in the project's product market is on the increase. The contribution margin for...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT