A project will produce cash inflows

Assignment Help Financial Management
Reference no: EM131012782

A project will produce cash inflows of $2,000 a year for 8 years. There is also a final cash inflow of $10,000 in year 8. The project's initial cost is $12,000. What is the net present value of this project if the required rate of return is 15 percent? Show your work.

Reference no: EM131012782

Questions Cloud

Limitations of the community-based correctional programs : Briefly describe the community-based correctional programs you selected. Explain the strengths and limitations of the community-based correctional programs
What factors affecting the classification of a cost : What factors affecting the classification of a cost as direct or indirect and explain types of inventory in Manufacturing companies
Analyzing a project and have gathered the data : You are analyzing a project and have gathered the following data: Year Cash Flow ($) 0 -155,000 1 56,400 2 61,800 3 72,000 4 75,000 Required return 16.5 percent Based on the internal rate of return of __________ percent for this project, you should a..
Describe community-based correctional program : A brief description of the case you selected. Then describe one community-based correctional program you think would be most effective for the offender in the case and explain why. Be specific and be sure to take the individual characteristics of ..
A project will produce cash inflows : A project will produce cash inflows of $2,000 a year for 8 years. There is also a final cash inflow of $10,000 in year 8. The project's initial cost is $12,000. What is the net present value of this project if the required rate of return is 15 percen..
Depeters co is sued for sex discrimination : DePeters Co is sued for sex discrimination on the grounds that too few women are hired because  fewer women than men achieve passing  scores  on a required  manual dexterity and physical  strength test. DePeters Co. offers in its defense that even th..
In the accumulation phase of the investor life cycle : In the accumulation phase of the investor life cycle:
Which investment is preferred and why : You have $10,000 to invest for 5 years and find the following information. Calculate the future value for each option. There are no payments, just a total amount received at maturity. Show your formulas or the inputs you use for your calculations. a)..
What will be the percentage change in the price of the bond : A Bond pays a 8 percent coupon rate with 10 years to maturity, makes semiannual payments, and has a yield-to-maturity of 6 percent. If market interest rates suddenly rise 1 percent, what will be the percentage change in the price of the bond? Did it ..

Reviews

Write a Review

Financial Management Questions & Answers

  Result in a stock market price change

Which of the following could be expected to result in a stock market price change?

  Arithmetic average growth rate in dividends

Suppose Stark Ltd. just issued a dividend of $2.14 per share on its common stock. The company paid dividends of $1.80, $1.89, $1.96, and $2.07 per share in the last four years. If the stock currently sells for $60, what is your best estimate of the c..

  Various trading strategies appear to offer non-zero alphas

Various trading strategies appear to offer non-zero alphas when we examine real world data. If indeed these alphas are positive, it could be explained by any of the following except:

  Yen is expected to weaken against the dollar

The japanese yen is expected to weaken against the us dollar in the coming year. Other things are equal. This is good news for?

  Monetary policy during war

Monetary policy during war: Consider a discussion during FOMC meetings in which there is a weak economy and a war, with potential major damage to oil wells. Explain why this possible effect would have received much attention at the FOMC meetings.

  Initial fixed asset investment

Consider a three-year project with the following information: initial fixed asset investment = $870,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $34.05; variable costs = $22.55; fixed costs = $210,000; ..

  Cash flows shown below if the appropriate cost of capital

Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 9 percent. Time: 0 1 2 3 4 5 Cash flow: -155 -155 0 260 235 210 $503.73 $205.52 $206.53 $189.48

  Labor supply between the wages

Musashi is a stay-at-home parent who lives in San Diego and does some consulting work for extra cash. At a wage of $40 per hour, he is willing to work 7 hours per week. At $50 per hour, he is willing to work 10 hours per weeK. Using the midpoint meth..

  Describe the federal budget in terms of the services

Write an essay about the overall budget and ask you for your personal opinion on where you think the overall federal budget is headed and what you would do if you could change the course of the deficit in 10 years. Describe the Federal Budget in term..

  Federal reserve tightens credit and firm uses more debt

How would each of the following scenarios affect a firm's cost of debt Rd(1-T), its cost of equity, Rs, and its WACC? Indicate with a plus(+), a minus (-) or a zero (0) if the factor would raise, would lower or would have an undeterminable effect on ..

  About the what is the present value

An investment will pay you $20,000 in 7 years. The appropriate discount rate is 7 percent compounded daily. What is the present value?

  What is the firms earnings growth rate

The newspaper reported last week that Bennington Enterprises earned $34.02 million this year. The report also stated that the firm’s return on equity is 14 percent. Bennington retains 70 percent of its earnings. What is the firm's earnings growth rat..

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