Assigned discount rate

Assignment Help Financial Management
Reference no: EM13945156

Bloomfield Tires has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $74,300, $128,700, and $89,500 for Years 1 to 3, respectively. What is the net present value of this project?

Reference no: EM13945156

Questions Cloud

Project net present value if the required rate of return : A project is expected to create operating cash flows of $24,500 a year for three years. The initial cost of the fixed assets is $55,000. These assets will be worthless at the end of the project. An additional $4,000 of net working capital will be req..
What is the firms cash conversion cycle : Romano Inc. has the following data. What is the firm's cash conversion cycle?
A vehicle accessory shop is considering buying a new style : A vehicle accessory shop is considering buying a new style of wheels for $ 168 and selling them at $ 369.60 for each wheel. Fixed costs related to this new style of wheel amount to $ 2465. It is estimated that 16 wheels per month could be sold. How m..
Describe the changing face of ethnicity and current ethnic : What is ethnic consciousness? Describe the changing face of ethnicity and current ethnic issues. What do your authors write about the future of racial and ethnic diversity?
Assigned discount rate : Bloomfield Tires has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $74,300, $128,700, and $89,500 for Years 1 to 3, respectively. What is the net present value of this project?
Calculate the percentage of solvent in the dried fabric by : Calculate the percentage of solvent in the dried fabric by weight. What is the concentration of solvent in the dryer exhaust (in g/m3) if the exhaust is at 80 degrees C and 1 atm? The solvent has a molecular weight of 86.
Target debt-equity ratio-cost of equity and debt : Sixx AM Manufacturing has a target debt-equity ratio of 0.46. Its cost of equity is 14 percent, and its cost of debt is 7 percent. If the tax rate is 36 percent, what is the company's WACC?
What amount of loan would be available to me : If I have a mortgage of $200,000 payable in 360 payments at 6.25% APR. What is my monthly payment? What is my balance after 2 years? What amount of loan would be available to me?
Using the high low method based on machine hours : Using your answer to 3. (Above), estimate the electricity costs for a month in which 400 machine hours are used.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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