Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce annual net cash flows of $21,950 for 8 years. The required rate of return is 6%. Compute the net present value of this investment to determine whether Bouvier should invest in the grill.
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- What refers to the interest rate at which the present worth of net cash flow of an investment equals to zero? O Return of investment Yield O Economic return Rate of return O Annual worthWhat is the rate of return when 12 shares of Stock A, purchased for $22/share, are sold for $465? The commission on the sale is $9. 4 F4 Copyright © 2003-2022 International Academy of Science. All Rights Reserved. F5 Rate of Return Enter the appropriate value into the formula to calculate the rate of return. A F6 5 RTY 6 & Total Cost = $273 Profit= $192 [?] Rate of Return = F7 7 * = F8 8 profit or loss total cost DELL F9 9. prtsc F10 home F11 Enter end F12 +11. InsertQuestion 2. Based on the following cash flow diagram, calculate the value of X with the interest rate of 10%. 150$ 150$ 15o$ 150$ 150$ 150$ 150$ 75$ 10 11 X= ?
- If i = 12%, compute G in the diagram. 6G 5G 4G 3G 2G G 2-3- 6 500 5002. Switching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $300,000 with annual costs of $35,000 and savings of $80,000 per year. The salvage value 10 years from now is projected to be $75,000. What rate of return will the firm make on this investment? Round your answer to the nearest .01 percent.At age 28 you invest P 25,000 into a mutual fund. If the fund averages a 7% annual return, your investment is worth how much at age 60? a. P 1, 266, 221 b. P 1, 448, 661 c. P 217, 882 d. P 190, 306
- What is the process of Calculating the Return on Invested Capitalfor Mixed Investments?Astrid makes an investment with a zero net present value. She pays $900 today, and receives $400 one year from today, $350 two years from today, and three years from today. There are no other cash flows, and her effective annual interest rate is 12%. Select one: a. $390 b. $420 c. $410 d. $350 e. $370A stock had returns of 14 percent, 17 percent, 14 percent, 20 percent, 16 percent, and 2 percent over the last six years. What is the arithmetic return for the stock? Arithmetic return What is the geometric return for the stock? Geometric return
- Give typing answer with explanation and conclusion Gustav Co. is planning to issue new 30-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callable after 5 years at a 5% call premium, how would this affect their required rate of return? Question 6 options: There is no reason to expect a change in the required rate of return. The required rate of return would increase because the bond would then be?Lorenz curves also can be used to provide a relative measure of the distribution of the total assets of a country. Using data in a report by the economic committee of a certain country, an economist produced the following Lorenz curves for the distribution of total assets in the country in 1963 and 1983, shown below. f(x) = x10 Lorenz curve for 1963 g(x) = x13 Lorenz curve for 1983 Find the Gini index of income concentration for each Lorenz curve and interpret the results. .... What is the Gini index for 1963? (Round to three decimal places as needed.) What is the Gini index for 1983? (Round to three decimal places as needed.) Interpret your results. O A. Total assets were more equally distributed in 1963 O B. Total assets were more equally distributed in 1983 O c. Total assets were distributed the same in 1963 as in 1983.QUESTION 6 What is the net present value of receiving $250 in 5 years from now if the interest rate is 12%? 141.86 142.56 140.34 139.55