After analyzing a project economically, figures were obtained: initial investment, $310000; annual net profit of $130000 each year for five years; salvage value of assets at the end of the fifth year, $160000. years; salvage value of assets at the end of the fifth year, $160000. The The cash contributions for the initial investment were: shareholders $186,000, ARMR = 43%, bank A $62,000, bank B $62,000. the following 43%, bank A $62000, TMAR 45%; bank B $62000 of the investment with TMAR of 49%. Calculate NPV. a) -$33.39 b) -$34.33 c) -$39.33 d) N.A

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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15.

 

After analyzing a project
economically,
figures were obtained:
initial investment, $310000;
annual net profit of $130000 each
year for five years; salvage value
of assets at the end of the fifth
year, $160000.
years; salvage value of assets at
the end of the fifth year, $160000.
The
The cash contributions for the
initial investment were:
the following
shareholders $186,000, ARMR :
=
43%, bank A $62,000, bank B
$62,000.
43%, bank A $62000, TMAR 45%;
bank B $62000 of the investment
with TMAR of 49%.
Calculate NPV.
a) -$33.39
b) -$34.33
c) -$39.33
d) N.A
Transcribed Image Text:After analyzing a project economically, figures were obtained: initial investment, $310000; annual net profit of $130000 each year for five years; salvage value of assets at the end of the fifth year, $160000. years; salvage value of assets at the end of the fifth year, $160000. The The cash contributions for the initial investment were: the following shareholders $186,000, ARMR : = 43%, bank A $62,000, bank B $62,000. 43%, bank A $62000, TMAR 45%; bank B $62000 of the investment with TMAR of 49%. Calculate NPV. a) -$33.39 b) -$34.33 c) -$39.33 d) N.A
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