An investment of $83 generates after-tax cash flows of $50.00 in Year 1, $72.00 in Year 2, and $125.00 in Year 3. The required rate of return is 20 percent. Find the net present value. Which of the following is not an operating activity? a. Cash receipts for interest earned. b. Cash payments for operating expenses. c. Cash collections from credit customers. d. Cash payments for dividends to shareholders. Want answer with explanation. If u give me wrong answer I will give u down vote.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter6: Managing Cash Flow
Section: Chapter Questions
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An investment of $83 generates after-tax cash flows of $50.00 in Year 1, $72.00 in Year 2, and
$125.00 in Year 3. The required rate of return is 20 percent. Find the net present value. Which of
the following is not an operating activity? a. Cash receipts for interest earned. b. Cash payments for
operating expenses. c. Cash collections from credit customers. d. Cash payments for dividends to
shareholders. Want answer with explanation. If u give me wrong answer I will give u down vote.
Transcribed Image Text:An investment of $83 generates after-tax cash flows of $50.00 in Year 1, $72.00 in Year 2, and $125.00 in Year 3. The required rate of return is 20 percent. Find the net present value. Which of the following is not an operating activity? a. Cash receipts for interest earned. b. Cash payments for operating expenses. c. Cash collections from credit customers. d. Cash payments for dividends to shareholders. Want answer with explanation. If u give me wrong answer I will give u down vote.
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