Since NPV is positive, Marian should take this opportunity
= 96,900*PVF(8.4%,1 year) – 97,000
= 96,900*0.9225 – 97,000
= -$7,608.86
Since NPV is negative, The contract SHOULD NOT be taken
Your storage firm has been offered $96,900 in one year to store some goods for one...
Your storage firm has been offered $96,200 in one year to store some goods for one year. Assume your costs are $96,900, payable immediately, and the cost of capital is 8.1%. Should you take the contract? The NPV will be $ . (Round to the nearest cent) Should you take the contract? (Select from the drop-down menu.) The contract be taken
Homework Help!! Your storage firm has been offered $97,900 in one year to store some goods for one year. Assume your costs are $95,500 payable immediately, and the cost of capital is 8.8%. Should you take the contract? The NPV will be $ (Round to the nearest cent) Should you take the contract? (Select from the drop-down menu.) The contract be taken
Your storage firm has been offered $99,400 in one year to store some goods for one year. Assume your costs are $96,600, payable immediately, and the cost of capital is 8.7%. Should you take the contract? The NPV will be $ . (Round to the nearest cent.) You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $200 for the phone and then monthly charges of $60 for 24 months. Carrier B wants you...
Your storage firm has been offered $96,300 in one year to store some goods for one year. Assume your costs are $95,000, payable immediately, and the cost of capital is 8.5%. Should you take the contract?
thum oOre o TF P 8-3 (similar to) Question Help Your storage firm has been offered $98,000 in one year to store some goods for one year. Assume your costs are $95,300, payable immediately, and the cost of capital is 8.1%. Should you take the contract?
You have been offered a unique investment opportunity. If you invest $11,800 today, you will receive $590 one year from now, $1,770 two years from now, and $11,800 in ten years. a. What is the NPV of the opportunity if the cost of capital is 6.4% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.4% per year? Should you take it now? a. What is the NPV...
You have been offered a unique investment opportunity. If you invest $10,800 today, you will receive $540 one year from now, $1,620 two years from now, and $10,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.9% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.9% per year? Should you take it now? a. What is the...
A security firm is offered $80,000 in one year for providing CCTV coverage of a property. The cost of providing this coverage to the security firm is $74,000, payable now, and the interest rate is 8.5%. Should the firm take the contract? O A. No, since net present value (NPV) is negative O B. Yes, since net present value (NPV) is negative. O C. Yes, since net present value (NPV) is positive. O D. It does not matter whether the...
Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.95 million per year. Your upfront setup costs to be ready to produce the part would be $8.17 million. Your discount rate for this contract is 8.4%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in...
Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $ 4.92 million per year. Your upfront setup costs to be ready to produce the part would be $8.07 million. Your discount rate for this contract is 8.4%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change...