Ashanti Goldfields, wanted to undertake a project which will costs GH 30,000 now and is expected to generate year –end cash inflows of GH 9000, GH 8000, GH 7000, GH 6000, GH5000 and GH 4000 in years 1 through 6.The opportunity cost of capital may be assumed to be 10 percent.

I strongly believe that NPV of the project is the requirement of this question:

NPV is -$486.82

Step-by-step explanation:

The NPV is the present value of the future cash flows from year 1 through year 6 minus the initial capital investment of GH30,000

The cash flow discount factor =1/(1+r)^n

r is the opportunity cost of capital at 10%

n is the relevant year of each cash flow

NPV=-30,000+9000/(1+10%)^1+8000/(1+10%)^2+7000/(1+10%)^3+6000/(1+10%)^4+5000/(1+10%)^5+4000/(1+10%)^6=-$486.82

The project is not viable since NPV is negative

Step-by-step explanation:

1. Approach

The easiest way to solve this problem is to find the degree measure of the parameter (x). Use the fact that line (LN) is a diameter to solve for (x), beacause the angle measure of a circle on either side of the diameter is (180) degrees. One can then find the measure of arc (mNM), and then find the measure of the angle (<NLM) using the inscribed angles theory.

2. Find the measure of (x)

A diameter is the largest chord or segment in a circle. It intersects a circle at two points and runs through the center of a circle. The degree measure of a circle on either side of the diameter is (180) degrees. As per the given image, line (LN) is a diameter. The arcs (mLM) and (mNM) make up half of the circle, or rather one side of the diameter. With this information, one can form an equation and solve for the parameter (x) using this information:

Substitute,

Simplify,

Inverse operations,

3. Find the measure of angle (<NLM)

The inscribed angles theorem states that an angle with its vertex on the circumference (outer edge) of a circle is equal to half of the surrounding arc. One can form an equation and solve for the measure of angle (<NLM).

Substitute,