Business, 05.12.2019 21:31, alexkrol30083

Shan now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst case scenario cash flows. if it decides to abandon the project at the end of year 2, the company will receive a one time net cash inflow of $4,500 (at end of eyar 2). the $4,500 the comapny receives at the end of year 2 is the difference between the cash the company recieves from selling off the project's assets and the comapny's -$1,000 cash outflow from operations. additionally, if it abandons the project, the company will have no cash flwos in years 3 and 4 of the project. using the informaiton in the preceding problem, find the expected npv of this project when taking the abandoment option into account. a. 34,285b. 28,571c. 31,428d. 27,142

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:20, randallmatthew6124

Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its output to m and 30% to a. sector m sells 30% of its output to e, 50% to a, and retains the rest. sector a sells 15% of its output to e, 30% to m, and retains the rest.

Answers: 1

continue

Business, 22.06.2019 19:40, pchisholm100

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?

Answers: 3

continue

Business, 22.06.2019 22:00, brad7330

Brody corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. beginning inventory for january consisted of 1,050 units that were 65% completed. 10,900 units were started into the process during january. on january 31, the inventory consisted of 500 units that were 50% completed. what would be the equivalent units for direct materials cost using the weighted average method?

Answers: 2

continue

Business, 23.06.2019 00:00, Brandon4188

Which example would the government consider as intellectual property? a. product design that contains a hologram of the logo of the company b. a copy of a famous artist’s painting in a new medium c. a plant species discovered in the united states for the first time d. a method of production that is common to an entire industry e. a discount structure offered to the customer at a store

Answers: 3

continue

Do you know the correct answer?

Shan now wants to take into account its ability to abandon the project at the end of year 2 if the p...