Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 8. barnes' bagles is considering manufacturing and

8. Barnes' Bagles is considering manufacturing and selling a new bagel-shaped pizza-thick with a hole...

60.1K

Verified Solution

Question

Finance

image
8. Barnes' Bagles is considering manufacturing and selling a new bagel-shaped pizza-thick with a hole in the middle. Development will cost $100,000 and will take one year. If the pizzas are popular ( 80% probability) the cash flows will be $40,000 per year for 5 years starting in Year 1 . If the pizzas are not a hit (20\% probability) the cash flows will be $5,000 per year for 5 years. Calculate the ENPV of the project. Barnes' cost of capital is 10%. a. $18,855 b. $20,740 c. $22,815 d. $25,096 correct answer e. $27,606

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Consider you hold 5000 shares of BHP and at the same time have gone long on...

Finance
1.2K views

Use the following information to answer questions 1 - 3 Inhale, Inc. 2018 Income Statement   Net sales $ 18,400   Cost of goods...

Advance Math
1.2K views

please show some shortcut tricks and technique formula for integration to solve out easy difficulties questions I...

Chemistry
1.2K views

why can sodium borohydride be preferred in reduction to alcohols over H2/Pt?

Medical Sciences
1.2K views

What are the THREE types of muscle tissue found in the body? Which type is voluntary?...

Biology
1.2K views

Write only one of the prefixes that means under

Physics
1.2K views

Q 18 A perfect gas undergoes the following three separate and distinct processes to execute...

Statistics
1.2K views

What does a 99 confidence interval mean If you were to take an infinite number...

Accounting
1.2K views

The prepaid advertising contract was signed on January 1,20X1, and covers a four-month period.

Accounting
1.2K views

Bir irketin vizyon beyannn ifadesi genellikle u ekilde olmaldr: oktan semeli stnlk...

Finance
1.2K views

Finance
1.2K views

poml) Susan is trying to decide whether or not to attend college during the next...