Calculate net present value

Assignment Help Basic Statistics
Reference no: EM132027243

What is time value of money Excel spreadsheet for the following two investments:

A. Initial investment ($100,000); Forecasts: Year 1 payback ($25,000); Year 2 payback ($25,000); Year 3 payback ($25,000)

B. Initial investment ($100,000); Forecasts: Year 1 payback ($20,000); Year 2 payback ($25,000); Year 3 payback ($40,000)

Use a re-investment rate of 10%. Calculate Net Present Value (=NPV) for each investment and specify which investment is the most profitable. ( not required to use the Excel (=NPV) formula but you will find it to be the easiest and most accurate means of calculating Net Present Value.)

Reference no: EM132027243

Questions Cloud

What yield to maturity is the bond offering : What yield to maturity is the bond offering? (Assume interest payments are semiannual.)
Structure of risk-free rates holds : If the liquidity premium theory of the term structure of risk-free rates holds, what is the liquidity premium for year 2, L2?
Find annual growth rate of regular payments expected to be : Oxygen Optimization just bought a new filtration system for 203, 900 dollars. To pay for the filtration system, the company took out a loan that requires.
What is the market-to-book ratio : Given common stock of $35 for year-end, total assets of $50m, debt ratio of 65%, no preferred stock, and 3 million shares of common stock outstanding
Calculate net present value : Use a re-investment rate of 10%. Calculate Net Present Value (=NPV) for each investment and specify which investment is the most profitable.
What are the assumptions underlying sales mix : The overall concept of a contribution margin is pretty straightforward- it is how much each unit contributes to covering fixed costs and eventually, profit.
Write a paper about the counseling profession : DISCUSS how this information helps to define dynamics as it relates to the counseling profession
What is the operating cash flow at given units : At an output level of 74,000 units, you calculate that the degree of operating leverage is 1.70. Suppose fixed costs are $150,000.
How many new shares will be distributed : How many new shares will be distributed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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