A project is expected to create operating cash flows

Assignment Help Financial Management
Reference no: EM13810480

A project is expected to create operating cash flows of $29,500 a year for three years. The initial cost of the fixed assets is $61,000. These assets will be worthless at the end of the project. An additional $4,500 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?

Reference no: EM13810480

Questions Cloud

Use a spreadsheet to calculate the upper and lower control : Determine a proper control chart. Use a spreadsheet to calculate the upper and lower control limits for the control chart and draw it.Suppose that the next carpet sample of 100 yards has 14 flaws. What can you say about the process?
What is the NPV of investing in the new technology : Silver Bear Golf (SBG) is a manufacturer of top quality golf clubs with a specialty of putters. Currently, each putter they sell brings in $280 of revenue at a cost of $200. This past year, they sold 900 putters and they expect this number to grow ea..
Growing concern for organisations : Sustainability is a growing concern for organisations but organisational success in this area often depends upon the conditions in their organisational environment. Discuss.
Create an entity-relationship diagram using conceptual data : Create an entity-relationship diagram using the conceptual data model located in the assignment description
A project is expected to create operating cash flows : A project is expected to create operating cash flows of $29,500 a year for three years. The initial cost of the fixed assets is $61,000. These assets will be worthless at the end of the project. An additional $4,500 of net working capital will be req..
Describe compare and critique one published quantitative : Use the library databases to identify, describe, compare, and critique one published quantitative study and one published qualitative study in a global context regarding the variables that affect employees'' organizational commitment. Provide a compa..
Fresh off excitement-investment using straight line method : Fresh off the excitement of the 2012 London Olympic Games, you decide that you want your firm to take advantage of the profits to be made for the 2016 games in Rio de Jeneiro. This $6 million is the after-tax terminal value that is in year 4 (that is..
Discuss fact-based evidence about how interest groups : Discuss fact-based evidence about how interest groups, political party loyalty, or campaign money may influence your representative. Can these influences weaken his or her effectiveness as a true "representative" of the district
What are some of the challenges facing a blended family : What are some of the challenges facing a blended family

Reviews

Write a Review

Financial Management Questions & Answers

  Question 1you are considering investing in facial

question 1you are considering investing in facial laboratories. suppose facial is currently undergoing expansion and is

  What is the effect of external cash flows to twr and mwr

What is the effect of external cash flows to TWR and MWR in the following scenarios? Additions to the portfolio prior to a period of weak performance. Withdrawals from the portfolio prior to a period of weak performance

  Statements is correct concerning market efficiency

Which one of the following statements is correct concerning market efficiency?

  Calculate the number of new customers

A local dental practice decides to run a Groupon campaign. The campaign offered $350 worth of dental services (such as teeth whitening) for $145. For the total campaign, 255 coupons were sold. Calculate the number of new customers.

  On 1 july 2009 abc ltd acquired 85 of the share capital of

on 1 july 2009 abc ltd acquired 85 of the share capital of xyz ltd by issuing 110000 shares.nbsp the market price of

  Discuss the following topic does arbitrage destabilize

discuss the following topic does arbitrage destabilize foreign exchange markets? arbitrage can be loosely defined as

  Market price-comparable market interest rates drop

What is the market price of a $1000, 8 percent bond if comparable market interest rates drop to 6 percent and the bond matures in 15 years?

  Compare the two cases of owning the stock versus

We buy a put option of Florenthal, Lesser and associates. Its premium is $4 and the strike price is $44. The current market price is $50. If the price drops to $35, shall we exercise the put option? If not, why not, and If yes, why yes? Compare the t..

  Compute the price of the bonds for these maturity dates

Essex Biochemical co has $1,000 par value bond outstanding that pays 15 percent anual interest. The current yield to maturity on such bonds in the market is 17 percent. Compute the price of the bonds for these maturity dates:

  Subsequent production-anticipated revenue stream

Suppose that an oil is expected to produce 100,00 barrels of oil during its first production year. However, its subsequent production (yield) is expected to increase by 12% over the previous year's production. The oil well has a proven reserve of 1,0..

  Operating cash flow for a sensitivity analysis

Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, give or take 4 percent. The expected variable cost per unit is $6.00 and the expected fixed cost is $36,000. The fixed and variable cost estimates are conside..

  Single parent and motivational training consultant

Michael Margolis is a single parent and motivational training consultant from Reno, Arizona. He is wondering about potential returns on investments given certain amounts of risk. Michael invested a total of $6000 in three stocks ($2000 in each) with ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd