Calculate npv if you can sell the fixed assets for project

Assignment Help Financial Management

Reference no: EM132072506

You are reviewing a project which requires $165,000 of initial investment and generates $63, 120, $70, 800 and $91, 080 of cash flows. Your required return for assets of current risk level is 12%.

Calculate NPV. Do capital budgeting tor this project based on NPV rule. In other words, decide whether you accept or reject this project.

Calculate NPV if required rate of return is 20%. Do capital budgeting for this project based on NPV rule with required rate of return of 20%.

Calculate NPV if you can sell the fixed assets for this project at after-tax salvage value of $30,000. Required rate of return is still 20%.

Reference no: EM132072506

Questions Cloud

Would you choose the us gaap or ifrs method : Are there major similarities and differences between U.S. GAAP and IFRS? Which of the differences do you find most interesting?

What is the present value of the tax savings : Strauss Corporation is making a $91,800 investment in equipment with a 5-year life. What is the present value of the tax savings

What must be the coupon rate on these bonds : Rhiannon Corporation has bonds on the market with 16.5 years to maturity, a YTM of 6.3 percent, and a current price of $1,036.

How many grams of a 15.3-g sample of this isotope : How many grams of a 15.3-g sample of this isotope would remain after 81 days if a particular isotope has a half-life of 25 days

Calculate npv if you can sell the fixed assets for project : You are reviewing a project which requires $165,000 of initial investment and generates $63, 120, $70, 800 and $91, 080 of cash flows.

What is the payback period for this prospective project : What is the weighted-average cost of capital that RF, Inc., should use for capital budgeting? What is the Net Present Value of this project?

Explain valence shell electron pair repulsion theory : Explain Valence Shell Electron Pair Repulsion Theory in the most basic laymen terms so that I can understand it.

What is that overhead rate : If Venkat Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate

What is the financial reporting : In formulating your Key Concept Exercise, consider the following questions: What is the difference between financial reporting and management accounting

User Account

All Pages