User Account

All Pages

Calculate the net present value

Assignment Help Finance Basics
Reference no: EM132345622

Random, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,960,000, and the project would generate cash flows of $380,000 per year for six years. The appropriate discount rate is 4.0%.

  • Calculate the net present value.
  • Calculate the profitability index.
  • Calculate the internal rate of return.
  • Should this project be accepted? Why or why not?

Reference no: EM132345622

Questions Cloud

Address the key issues : What are some ways that those saving for retirement can help address the key issues you have discussed?
Calculate the npv for the capital budgeting proposal : Calculate the NPV for the following capital budgeting proposal: $100,000 initial cost for equipment, straight-line depreciation over 5 years to a zero book
Decision sciences department next semester : In choosing four electives from the dazzling array offered by the Decision Sciences Department next semester, the students that had already
What is the value of the stock : The stock promised to pay an annual dividend equal to 11.0% of the par value. If the appropriate discount rate for this stock is 19.0%.
Calculate the net present value : Calculate the net present value. Calculate the profitability index. Calculate the internal rate of return.
What is the break-even volume : What would the total cost, total sales and profit (or loss) be for a weekly volume of 100,000 bars? What is the break-even volume?
Future value and compound interest formula : Find the future value and compound interest. Use the? $1.00 future value table or the future value and compound interest formula
Align with fundamental change : How should a company alter its activities and ways of conducting business to align with this fundamental change?
Human resource management practices : What are some global conditions that would impact human resource management practices with an organization.

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