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Homework answers / question archive / 1) Based on the following cash flow diagram, calculate the value of X with the interest rate of 12%
1) Based on the following cash flow diagram, calculate the value of X with the interest rate of 12%. X = ? ? 400$ 200$ 500$ 1000$
2)The demand curve for Ji single firm's output in a perfectly competitive market is perfectly elastic O perfectly inelastic downward sloping O greater than the marginal revenue O the same as the market demand
1)
Depicting the graph in a tabular form:
| Year | Cash flow | PV Factor (n, 12%) | Discounted CF |
| n | CF | P | CF * P |
| 1 | -500 | 0.893 | -446.5 |
| 3 | -1000 | 0.712 | -712 |
| 4 | 400 | 0.636 | 254.4 |
| 6 | 200 | 0.507 | 101.4 |
| 7 | X | 0.452 | 0.452X |
| Total | 0 |
We get the below equation from the Discounted CF column:
-446.5 - 712 + 254.4 + 101.4 + 0.452 X = 0
=> 0.452 X = 802.7
=> X = $ 1775.88 (This value makes the NPV zero at the MARR of 12%)
2)Please use this google drive link to download the answer file.
https://drive.google.com/file/d/1QnTAHiKt1D5czSBoEmrawo21TwKFtTDp/view?usp=sharing
Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process.
https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link
