Investment has cash outflows

Assignment Help Financial Accounting
Reference no: EM13753360

If an investment has cash outflows of Q dollars at the end of each year for three years, then the present value of these cash outflows under a 10% rate of return will be:

A. equal to that under a 12% rate of return.

B. greater than under a 12% rate of return.

C. unknown because it depends on the size of Q.

D. less than under a 12% rate of return.

Reference no: EM13753360

Questions Cloud

What happened to the spanish economy during philip iis reign : What happened to the Spanish economy during Philip II's reign? In what ways was Louis XIV able to increase his power while decreasing the power of other groups?
Balance sheet presentation for the liability for bonds : On June 30, 2014, Mischa Auer Company issued $4,079,000 face value of 11%, 18-year bonds at $4,416,483, a yield of 10%. Auer uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and Dec..
Each proposal and recommend a course of action : MM Corporation has seen its profit increase by over 15% per year during the past three years. The company is considering expansion and believes that it will need to raise $10,000,000. It is considering the following alternatives: Discuss the advantag..
Research share-based payment reporting and spe reporting : Write a 700- to 1,050-word executive memo as a team that includes a description of what you will look for to see if the client is consistent with the generally accepted accounting principles (GAAP).
Investment has cash outflows : If an investment has cash outflows of Q dollars at the end of each year for three years, then the present value of these cash outflows under a 10% rate of return will be:
Explain comparison between piagets and vygotskys theories : Write a professional essay on the comparison between Piaget's and Vygotsky's Theories of Development.
Amount of goodwill acquired by winans : On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont’s balance sheet showed assets of $620,000, liabilities of $200,000, and owners’ equity of $420,000. The fair value of..
Bad debt expense is recorded at year-end : Which of the following is correct when bad debt expense is recorded at year-end?
Average beta of the new stocks : What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return? Attach your Excel file showing your calculations.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How many orders will be placed each year

Round to the nearest unit. b) How many orders will be placed each year if the EOQ is used? c) What are the valves carrying and ordering costs if the EOQ is used?

  Evaluate the material purchase price variance

Evaluate the material purchase price variance and the material quantity variance and evaluate the labor rate, labor efficiency, and total labor variance.

  Create a chart of t-accounts

Analysts predicted earnings per share (EPS) for your company to be $0.12 at the close of 2011.

  Determine net present value of purchasing the new machine

Determine the net present value of purchasing the new machine if the company has a required rate of return of 14%?

  Compute the total cost of units in ending work-in-process

Compute the total cost of units transferred out using the weighted-average method and weighted average method.

  How much cash can lara company expect to collect in november

Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Lara Company expect to coll..

  What tax consequences follow on default

Under the Lay-by sales conditions customers pay a non-refundable deposit of 10% and agree to pay off the balance within 12 months. The goods are taken from the store's inventory and set aside at the time the deposit is made.

  Prepare the literature review

Prepare the literature review

  Long-term debt and equity financing

Likely level of equity financing and long-term debt - what is the likely level of its long-term debt and equity financing?

  In what circumstances would anentity consolidate

Explain in your own words, using a diagram if you wish, the concept of an indirect non-controlling interest.Does the existence of an indirect non-controlling interest have any impact on the adjustments for intra-group transactions?Why or why not?

  Business emphasizes the providing of maintenance

Business emphasizes the providing of maintenance and service for customers

  Illustrate what would the selling price have to be in order

Assume that Felde Company sells the same number of units in 2012 as it did in 2011. Illustrate what would the selling price have to be in order to reach the stockholders' desired profit level?

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