Calculate npv for given details

Assignment Help Corporate Finance
Reference no: EM13318572

You are working for small company who have venture into used commercial vehicle finance since April 2014 you asked to calculate NPV by providing below details.

Revenue of 6lakh per month

3 month deposit for 6 yrs=18 lakh

3 month advance quarterly payment (18 lakh) 4 quarterly payment per yr

Discount rate=12%

Acceleration rate of 5% till 6 yrs and other case is with acceleration rate of 10% every 2 yrs

Reference no: EM13318572

Questions Cloud

What are the observable artifacts-espoused values : What are the observable artifacts, espoused values, and basic assumptions associated with Cisco’s culture? Explain.
Determine the angle that locates the dark fringe : In a Young's double-slit experiment the wavelength of light used is 476nm (in vacuum), Determine the angle that locates the dark fringe for which m = 0
Explain and critically discuss what 21st century managers : Explain and critically discuss what 21st Century managers can learn from the 20th Century management theory and concepts.
Explain the amounts of reactants and products : Compare the amounts of reactants and products that will be present when the system reaches equilibrium. c.What will happen to the amount of Cl2 in the system if HCl is removed from the mixture. d. For this reaction, will the value of DG be positiv..
Calculate npv for given details : You are working for small company who have venture into used commercial vehicle finance since April 2014 you asked to calculate NPV by providing details
What is the peak emf of the generator : When its coil rotates at a frequency of 258 Hz, a certain generator has a peak emf of 72 V. What is the peak emf of the generator
Types of leadership styles and behaviors in an organizationa : Essay about how the characters used types of leadership styles and behaviors in an organizational behavioral perspective. Needs to be specific to the characters.
Compute energy loss in each bench if radius outside of bend : At several points in the system a 90 degree bend is required. Compute the energy loss in each bench if the radius outside of the bend is 300mm
This tutorial involves building classes and objects in java : This tutorial involves building classes and objects in Java, for this question it  involves creating a class (DVDInfo) to represent the DVD object and another class (BonusInfo) to represent the bonus material for a DVD object such as a movie tra..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Vesting and founder replacement

Calculate the same numbers for Annabella, Bob, and Vulture Ventures. What control structure would they prefer and how does your answer change when you re-price the first round; i.e., if you allow the price of the first round to vary across the two ..

  Rate of return generated by project

If this project were instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project?

  What is omegas after-tax wacc

How much higher would WACC be if Omega used no debt at all and what is Omega's after-tax WACC

  Calculate the monthly payment for loan

Ashley purchase a new PC for $ 1850. She paid a $ 120 down payment & financed the rest for one year at an interest rate of 7 percent.

  How long will it take for her funds to triple

How much would $20,000 due in 50 years be worth today if the discount rate were 7.5% and what interest rate would you earn if you bought this bond at the offer price?

  Problem on minimum wage

Have you worked for the minimum wage if so, for how long? Would you favor rising the minimum wage by a dollar? By two dollars? By five dollars? Describe your answer.

  Make the journal entry to record transaction

Alpaca corporation issued 300,000 shares of no-par common stock at 15 dollar per share. Make the journal entry to record transaction.

  Calculate wacc based on both book value and market value

The current market value of Genatron's long-term debt is $350,000. The common stock price is $20 per share and there are 30,000 shares outstanding. Calculate the WACC

  Type of financing available for quoted and unquoted business

Discuss the various types of financing available for quoted and unquoted businesses and what possible motives might companies have for going private?

  Find the net present value

Duncombe Village Golf Course is planning the purchase of new machine that will cost $1,200,000 if purchased today and will create following cash disbursements & receipts.

  What is the industry average price-earnings ratio

What is the industry average price-earnings ratio and what is the price-earning ration for Reagan Inc.,? Is this the relationship you would expect between the two ratios? Why?

  Record the conversion of the preferred stock

Pechstein company issued 2000 shares of $10/value common stock upon conversion of 1000 shares of dollar 50 par value preferred stock. The preferred stock was issued at $60 per share.

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