Adopt positive npv projects

Assignment Help Finance Basics
Reference no: EM131537548

As the text notes, firms should adopt positive NPV projects, and reject negative NPV projects. But what if a project has a $0 NPV?  Should they accept the project or reject it? Explain.

Reference no: EM131537548

Questions Cloud

Continuation of the roger strader case : Roger Strader works for a small manufacturing company and is married to Amy, who were high school sweethearts and are both currently 64 years old.
Interest-earning account : A deposit placed in an interest-earning account earns 29.8% a year. How many years will it take to double in value?
Expanding into the sports drink business : Benjamin Corp. is considering expanding into the sports drink business with a new product. Assume that you were recently hired as assistant to the director.
Discuss the importance of sports to the tv ecosystem : Discuss the importance of sports to the TV ecosystem and the role of non-sports watchers subsidy of sports viewing
Adopt positive npv projects : As the text notes, firms should adopt positive NPV projects, and reject negative NPV projects.
Rolex target capital structure : Rolex target capital structure is the same as indicated by current market conditions.
Relationship between bond prices and interest rates : Why do some financial analysts treat preferred stock as a special type of bond, rather than as an equity security?
Value-maximizing motives for mergers : Explain how agency problems may lead to non value-maximizing motives for mergers.
What are some strengths and weaknesses of the proposal : Do you believe the proposal would be approved if formally proposed? What are some strengths and weaknesses of the proposal?

Reviews

Write a Review

Finance Basics Questions & Answers

  Processes that are shaping management accounting practices?

What are some of the processes that are shaping management accounting practices?

  What is the project’s net present value

Komfy Karz is evaluating a project that costs $365,000 and is expected to generate $260,000 and $175,000, respectively, during the next two years.

  Information for a mutual fun

Consider the following information for a mutual fund, the market index,

  Determine the present value of replacing the fleet in comput

Adams County has 80 older model school buses that carry a present salvage value of $15,000 each. The county officials are contemplating replacing all the buses with 70 new larger ones, each costing $115,000. Larger size of the buses coupled with plan..

  Compute the firm net profit margin

Compute the firm's net profit margin, total asset turnover and financial leverage multiplier (also known as the equity multiplier)

  Rise and fall of biotech firm

Describe, from a regulatory standpoint, the rise and fall of the biotech firm. It can be any firm, but preferably a US firm.

  What exactly does the technical term calibration mean

Are your present value estimates (usually) sensitive to your assumption about the eternal growth rate of earnings or cash flows, assuming that they are used only in the terminal value forecast?

  In perfect markets risk management expenditures aimed at

in perfect markets risk management expenditures aimed at reducing a firms diversifiable risk serve toa. market the firm

  Find current price of the preferred stock

Preferred stock of ABC corporation pays an yearly dividend at the rate of 4.5 percent per share. If ABC Corp's preferred shares are issued at $25 par value per share, & comparable yields are at 7.25 percent,

  Did the profit meet its desired roi

The investment in a new cath lab was $950,000 in equipment costs and $50,000 in renovation costs. A desired ROI is 12%. Once the lab was operating, 7,000 patients were served in the first year and were charged $640 for each procedure. The a..

  What is your percentile if you scored 217 on the test

1. What is your percentile if you scored 217 on the test? 2. What is your percentile if you scored 185 on the test?

  How much would your capital gain be negative if a loss

If you had bought the bond the previous day, how much would your capital gain be (negative if a loss)? Select a Treasury bill maturing at least 20 weeks in the future. What is its yield to maturity?

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