User Account

All Pages

Calculate the expected npv

Assignment Help Finance Basics
Reference no: EM132491087

An auto plant that costs $130 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $190 million if the line is successful but only $50 million if it is unsuccessful. You believe that the probability of success is only about 50%. You will learn whether the line is successful immediately after building the plant.

a-1. Calculate the expected NPV. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)

a-2. Would you build the plant?

Suppose that the plant can be sold for $125 million to another automaker if the auto line is not successful. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.)

b-1. Calculate the expected NPV.

b-2. Would you build the plant?

a-1. Expected NPV ____________ million

a-2. Would you build the plant? _____________

b-1. Expected NPV _____________million

b-2 Would you build the plant?______________

Reference no: EM132491087

Questions Cloud

Discuss the debate on media cause individuals to develop : Discuss the debate on Media cause individuals to develop negative and unrealistic body images. Support your views with two or three reasons and/or examples.
Discuss hr activities in which a multinational firm engage : Discuss two HR activities in which a multinational firm must engage that would not be required in a domestic environment. The response must be typed.
What is the risk-free price that she can guarantee : Assuming that the farmer has enough cash liquidity to fund any margin calls, what is the risk-free price that she can guarantee herself.
How to make power points that will allow to involve class : Respond to this: Bob is going through quite a large change in the mindset of education as a whole. As a teacher, he is at the forefront of setting the stage.
Calculate the expected npv : Calculate the expected NPV. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.
Determine which type of treatment group would beneficial : Determine which type of treatment group would be most beneficial. Some types of treatment groups may overlap in addressing certain problems or issues.
How a company works unless they are taught to do better : Training is not just about team building classes and fire safety, but plays a vital role in our "strategic" plan as contemporary HRM. We exercise three.
Define what are some good rules of thumb : Based on your experiences, as well as the chapter information, what are some good "rules of thumb" for conducting successful performance appraisal interviews?
How the student connects readings to his or her own life : Read at least 2 or 3 of the readings from that unit. This coverage should include direct quotations, the student's interpretation, and how the student connects.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd