Npv, Macroeconomics

Assignment Help:

The cash flows (CFt) associated with an investment are listed below (assume that each cash flow occurs at the beginning of each year):

                        CF0  = -200

                        CF1  = 100

                        CF2  = 120

Should the firm undertake this project if:

a.  The interest rate is 5 percent (and what is the project's NPV).

b.  The interest rate is 10 percent (and what is the project's NPV).

c.  What interest rate would leave the firm indifferent to the investment decision?

 


Related Discussions:- Npv

What are the market interest rates, What are the Market interest rates ...

What are the Market interest rates The most important interest rates from a macroeconomic perspective are interest rates that the government pays on the loans they use to finan

Standard deviation for sample bills, Suppose the country club bills based o...

Suppose the country club bills based on a sample of 4 members are: 383, 1,051, 637, 928. What is the standard deviation for this sample of bills? (please round your answer to 1 dec

Licensed drivers revealed the following number of speeding, A sample of 2,0...

A sample of 2,000 licensed drivers revealed the following number of speeding violations. 0 violations for 1,910 drivers. 1 Violations for 46 drivers. 2 violations for 18 drivers. 3

Long-run labor demand, Long-Run Labor Demand: Graph an increase in the...

Long-Run Labor Demand: Graph an increase in the wage when only labor is a 'normal' input to production. Graph an increase in the wage when both inputs are 'normal'

Answer for questions, How can we answer in Economic terms this questions: W...

How can we answer in Economic terms this questions: Why should the government consider to increase tax on cigarette

Tariff reform - trade liberalisation under wto, Tariff Reform: India's...

Tariff Reform: India's customs tariff rates have been declining since 1991. The "peak"  rate came down from 150 percent in 1991-92 to  40 percent  in 1997-98. The downward mom

Evaluate nominal wages, Q. Evaluate Nominal wages? Nominal wages ...

Q. Evaluate Nominal wages? Nominal wages W = (W/P).P The nominal wage is equal to the real wage times the price level. Because the real wag

Real GDP using chained-dollar method, 2012 Mangoes 91 boxes $7 a box ...

2012 Mangoes 91 boxes $7 a box Pinapples 56 boxes $12 a box 2013 Mangoes 108 boxes $14 a box Pinapples 70 boxes $8 a box Real GDP in 2013 using the chained-dol

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd