Calculate the net present value

Assignment Help Finance Basics
Reference no: EM13257603

Calculate the net present value (NPV) for the following twenty-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%.


a. Initial cash outlay is $15,000; cash inflows are $13,000 per year.

b. Initial cash outlay is $32,000; cash inflows are $4,000 per year.

c. Initial cash outlay is $50,000; cash inflows are $8,500 per year.

 

Reference no: EM13257603

Questions Cloud

Determine the width of the central bright fringe : Red light of wavelength 633nm from a helium-neon laser passes through a slit 0.370mm wide. What is the width of the central bright fringe?
Explain reaction assuming first-order kinetics : After 52.0 min, 18.0% of a compound has decomposed. What is the half-life of this reaction assuming first-order kinetics
Determine balance in prepaid insurance account : If beginning balance in prepaid insurance was $500 and$2,500 was paid for insurance premium during year, ending balance in prepaid insurance account (after the aboveadjusting entry) would be?
What are examples of unusual or dysfunctional costing : What are examples of unusual or dysfunctional costing information that has been seen and/or decisions made using that costing information?
Calculate the net present value : Calculate the net present value (NPV) for the following twenty-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14%.
Question regarding memphis corporation : Memphis Corporation has a cash balance of $200,000.00 on1/1/2008. The company's sales budget for the year was$500,000.00. However, only 80% of the sales for the year arecollectible during the year.
Major steps in the standard-setting process : List the major steps in the standard-setting process. Explain the purpose of each of the primary documents thatresults from the process.
What is the purpose of internal controls : What is the purpose of internal controls? Be specific.
Explain the pressure in the tire exceed its maximum rating : An automobile tire has a maximum rating of 38 psi (gauge pressure). The tire is inflated (while cold) to a volume of 11.8L and a gauge pressure of 36.0 psi at a temperature of 12.0C. While driving on a hot day, the tire warms to 65.0C and its volu..

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of the standard deviation of the portfolio

Computation of the standard deviation of the portfolio and What proportion of the portfolio is invested in the risky asset

  Calculate price per share after the split

Capra's stock sells at $60 a share. Capra's stock trades at $60 a share. The corporation is planning a 3-for-2 stock split. Currently, the company has EPS of $3.00, DPS of $0.50, and ten million shares of stock outstanding.

  Computing the number of shares to be issued to public

Computing the number of shares to be issued to public for capital requirements and How many new shares must the company sell to net $50 million

  What annual rate of return would have to have been earned

What annual rate of return would have to have been earned on the account over an 18-year period?

  Convertible debt-project evaluation and bankruptcy

What are the benefits and costs of placing the financially troubled company Bankruptcy proceeding? Is this a legitimate and ethical vehicle for management to employ for the benefit of company's stakeholders?

  Calculate the risk premiums for each factor

Assume stock returns can be explained by a 2 factor model. The firm-specific risks for all stocks are independent. The following table shows the data for two diversified portfolios:

  Real estate finance

Discuss various types of derivatives contracts: Options, Futures and Forward Contracts. Discuss various types of government and central bank intervention to impact currency exchange rates.

  Finding athematic as well as geometric returns for the stock

Finding Athematic as well as Geometric returns for the stock and geometric returns for the stock are

  Detailed explanation to budgeting

How do you execute the time value of money concept to make decisions in your personal life?

  Significant internal events affecting cash position

At one time many customers turned to Sears for home improvement projects. As the economy boomed many warehouse stores began to open their doors.

  Semi-annual and continuous compounding

Mr. Miser, who is 35 years old, has just inherited $11,000 and decides to use the windfall towards his retirement. He places the money in a bank which promises a return of 6 percent per year until his planned retirement in 30 years.

  Why does the tax rate for a comprehensive consumption tax

Why does the tax rate for a comprehensive consumption tax that is designed to replace an equal-yield comprehensive income tax have to be higher than the income tax rate? What is the impact on savings and excess burden in the investment markets?

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