(Answered) Pipeline generates a net cash inflow of 2 million over the

Statistics

Pipeline generates a net cash inflow of $2 million over the coming year. Its operating costs are negligible. The volume of oil shipped is declining, and cash flows are expected to decline by 4% per year. Discount rate is 10%. What is the PV of the pipeline's cash flows if the pipeline is operated forever? What is the PV of the cash flows if the pipeline will be shut down after 20 years?

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M93067100
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

The probability that someone made a purchase at a store is

The probability that someone made a purchase at a store is 0.36. You randomly select 15 people who went to the store. The random variable x represents the number of people who made a purchase. a. Find the probability tha ...

An urn contains 5 red and 10 blue balls balls are drawn

An urn contains 5 red and 10 blue balls. Balls are drawn sequentially from urn without replacement. Let X be the number of draws necessary in order to obtain exactly 4 red balls. Find probability mass function of X

A production system has two spares of a critical component

A production system has two spares of a critical component that have average uptime 1/lamba = 1 month. Find the probability that the 3 components (the operating one and the two spares) will last more than 6 months. Assum ...

A random sample of the closing stock prices in dollars for

A random sample of the closing stock prices in dollars for a company in a recent year is listed below. Assume that sigma σ is ?$2.59. Construct the 90?% and 99?% confidence intervals for the population mean. Interpret th ...

Lets do some r suppose you have the following situation you

Let's do some R.... Suppose you have the following situation: You have a large jar of beans, 43% black, 57% white. You take a sample of 14 beans. a) Use R to figure out the probability for every single possible outcome. ...

A budgeting web site reported thatnbsp20nbspof us

A budgeting Web site reported that 20?% of U.S. households have withdrawn money from a? 401(k) or other retirement account for needs other than retirement in 2013. A random sample of 11 U.S. households was selected. Comp ...

A researcher is planning to a silvicultural study using 3

A researcher is planning to a silvicultural study using 3 different fertilizers on 3 adjacent plots. How many ways can the 3 plots be arranged if there are 18 fertilizers to choose from?

You randomly sample 50 theaters in the united states you

You randomly sample 50 theaters in the United States. You ask those theaters how much they charge for a large popcorn, and you get a sample mean of $6. Then, you make confidence interval using this data with the lower li ...

Monroe inc is evaluating a project the company uses 138

Monroe, Inc, is evaluating a project. The company uses 13.8 percent discount rate for this project. cost and cash flows are shown in the table. What is the NPV of the project? year. Project 0. ($11,368,000) 1. $2,187,590 ...

Initial outlay is 16853year 1 5625year 2 5504year 3

Initial outlay is $16,853 Year 1 $5,625 Year 2 $5,504 Year 3 $5,892 Year 4 $8,851 What is the discounted payback period? The discount rate is 10%...Round answer to two decimal points

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert