Annual cash flows-what is the projects npv

Assignment Help Financial Management
Reference no: EM13828606

A project has annual cash flows of $3,000 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 11.39%. If the firm's WACC is 8%, what is the project's NPV? Round your answer to the nearest cent.

Reference no: EM13828606

Questions Cloud

Beaker of water comprises a thermodynamic system : In the above scenario, t he surrounding performed 20KJ of work on the system. How much heat would the system have to have gained or lost in order for the internal energy of the system to have remained constant throughout the process. You must show al..
Achieving integration in an organization : Write a 500 word essay on how can integration be achieved within organization. Illustrate the concept integration in your own company or one you know well.
Which action will provide the highest rate of return : Suppose the current stock price is $100. If the stock price increases soon, which action will provide the highest rate of return?
Calculating statistical values from australian department : Calculating Statistical Values from Australian Department of Transport
Annual cash flows-what is the projects npv : A project has annual cash flows of $3,000 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 11.39%. If the firm's WACC is 8%, what is the project's NPV?
Capital budgeting criteria-ethical considerations : An electric utility is considering a new power plant in northern Arizona. Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit, the plant would be legal; but it would cause some air ..
Human resources management-strategic talent management : Write a literature review on human resources management and strategic talent management.
Hedge against gbp exchange rate risk : Suppose you receive 2,500,000 British Pounds (not Euros) today and plan to convert into US dollars early next February. Which is the correct action to take today in order to hedge against GBP exchange rate risk?
Study on comparison of lsat and sat verbal : Study on Comparison of LSAT and SAT Verbal

Reviews

Write a Review

Financial Management Questions & Answers

  Market imperfection result in an optimal capital structure

The existence of market imperfection result in an optimal capital structure with- All debt, all equity, All equity and debt.

  Explain investor purchasing the rights to royalties

Royalty payments arrive once per year, starting one year from now. In the first year, the author expects $400,000 in royalties, followed by $300,000, then $100,000, then $10,000 in the three subsequent years.

  Determine how large must each of the 5 payments be

To get the money for this payment, you will make 5 equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 8% with quarterly compounding.

  Explain what is the price of the bond if the bond matures

What is the price of the bond if the bond matures in 5, 10, 15, or 20 years? What do you notice about the price of the bond in relationship to the maturity of the bond?

  A nationwide distributor of furniture hardware

Knob, Inc., is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $241.20 million annually. First National, Knob's principal bank, offers to establish a new concentration banking s..

  Initial outlay-what is the net present value of the project

A project has an initial outlay of $1,964. It has a single payoff at the end of year 7 of $6,219. What is the net present value (NPV) of the project if the company’s cost of capital is 10.89 percent?

  What is the yield to maturity-Treasury STRIPS

A Treasury STRIPS is quoted at 68.533 and has 4 years until maturity. What is the yield to maturity?

  Finance the replacement of fully depreciated property-plant

Based upon following information, how much debt financing (as a %) would be required to finance the replacement of fully depreciated Property, Plant, and equipment (P.P.&E.)?

  Straight supply straight supplystraight supply is a major

straight supply ltbrgt ltbrgtstraight supply is a major supplier of medical components to large pharmaceutical

  Factors that affect the corporate cost of capital

The Board Chair is concerned about factors that affect the corporate cost of capital for any business: the level of interest rates, tax rates, capital structure policy, and capital investment policy. Does the tax rate, cost of debt, or cost of equity..

  Concerning proper protection of the ring

Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current make value of $50,000. She feels that the ring is adequately insured because she purchased a Homeowners 3 (special..

  Compute the amount of cash paid to merchandise suppliers

Lowes companies, a retailer of home improvement products, reported cost of goods sold of $31,729 million for the fiscal year ended January 30, 2009. Its ported merchandise inventories of $7,611 million at the beginning of fiscal 2009 and 8,209 millio..

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