An investment under consideration has payback of six years

Assignment Help Financial Management

Reference no: EM131361271

An investment under consideration has a payback of six years and a cost of $872,000. Assume the cash flows are conventional.

If the required return is 12 percent, what is the worst-case NPV? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places, e.g., 32.16.)

Worst-case NPV $

Reference no: EM131361271

Questions Cloud

Explain how you decided what was important or not : After viewing the PowerPoint and the associated links, please list the 10 art pieces in the PowerPoint from Most Important (#1) in your own opinion to Least Important (#10) in your opinion. Briefly explain how you decided what was important or no..

The colorado educational and cultural facilities authority : The Colorado Educational and Cultural Facilities Authority (CECFA) is issuing a 30 year bond with a face value of $5,000,000 and a stated annual interest rate of 6 percent. CECFA will make interest payments twice a year. Calculate the semi-annual int..

What is the break-even volume per evening performance : As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far, What is the break-even volume per evening perform..

What is the energy density of the energy : How does this compare with the energy density (mc2) of particulate matter in the Universe which amounts to an average of 0.2 protons (mostly in hydrogen atoms) per cubic meter?

An investment under consideration has payback of six years : An investment under consideration has a payback of six years and a cost of $872,000. Assume the cash flows are conventional. If the required return is 12 percent, what is the worst-case NPV?

What is the population mean : For a population with = 10, a score of X = 60 corresponds to z = -1.50. What is the population mean?

What strikes you about a certain phrase or thought : Does he or she have a particular style and/or pursue themes that are characteristic of "The Harlem Renaissance"? What strikes you about a certain phrase or thought?

Federal inmates are serving time for drug dealing : According to Harper's Index, 50% of all federal inmates are serving time for drug dealing. A random sample of 16 federal inmates is selected:

Discounted payback period : An investment project costs $10,000 and has annual cash flows of $2,850 for six years. What is the discounted payback period if the discount rate is zero percent? What is the discounted payback period if the discount rate is 5 percent? What is the di..

User Account

All Pages