How do Calculate the net present value or NPV for project

Assignment Help Financial Accounting
Reference no: EM133002014

Problem 1: Calculate the net present value (NPV) for the following project. The project requires an initial investment of $20,200 and provides 5 annual cash inflows of $20,900. Assume a cost of capital of 5.4%.

a) $68,615.25
b) $68,215.09
c) $69,696.41
d) $69,294.22

Reference no: EM133002014

Questions Cloud

Which capital budgeting is important because : What is the payback period of a project with an initial investment of $14,400 and annual cash flows of $1,195?? Which Capital budgeting is important because?
Solve the net present value? or NPV for the project : Solve the net present value (NPV) for the following project. The project requires an initial investment of $1,980 and provides 5 annual cash inflows of $165
Solve the net present value? for the project : Suppose? you're presented with a proposal for a project. With a cost of capital of 14%, calculate the net present value? (NPV) for this project.
What is the depreciation tax shield in the second year : What is the depreciation tax shield in the second year of operations? The machine is classified as 3-year property with MACRS depreciation rates for first year
How do Calculate the net present value or NPV for project : Calculate the net present value (NPV) for the project. The project requires an initial investment of $20,200 and provides 5 annual cash inflows of $20,900.
What is the depreciation expense in the first year : Endo Mountain Bikes Inc. is purchasing a new machine for constructing hydraulic shocks. What is the book value at the end of the second year?
What is the? after-tax cost of the preferred? equity : What is the? after-tax cost of the following preferred? equity? The par value of the preferred share is ?$100 and the annual dividend is 6?%.
Does the company have any deferred tax assets : Does the company have any deferred tax assets or deferred tax liabilities disclosed in the notes? Describe the terms and items specific to your company.
Provide a brief discussion on the wine industry : Provide a brief discussion on the wine industry in Australia. This discussion should provide the reader with an understanding of how the wine industry

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount of cash should be reported

The bonds were issued at face value plus accrued interest. What amount of cash should be reported at the date of the May 1 issuance

  Evaluate how much is stock worth for riverhawk sport

Riverhawk Sport Authority (RSA) will pay a dividend of $7 for each of the next 3 years, $8 for each of the years how much is this stock worth to you?

  What does change do to the sample inn projected occupancy

Now change the Assumed Compound Supply Growth to 0.42%. What does this change do to the Sample Inn's projected occupancy

  What amount of capital gain does jacob have from sale

Jacob is a general partner in XJS Partnership, What amount of capital gain or loss does Jacob have from the sale of his partnership interest in XJS?

  Calculate EMC estimated value of operations

EMC Corporation's current free cash flow is $400,000 and is expected to grow at a constant rate of 5%. Calculate EMC estimated value of operations

  Describe features of recovery plans

Describe at least two (2) features of each of the Small claims tribunals and lower courts for recovery plans and explain it with proper example.

  What is the book value of the equipment

What is the book value of the equipment and does the balance in the accumulated depreciation account mean that the equipment's loss of the value

  Prepare the entries for the sale of the televisions

Prepare the entries for the sale of the televisions, including both warranties. Prepare the entry for 2021 warranty costs. Use a date of May 30.

  What is the present value of floating rate cash flows

Given the following spot yield curve, what should be the fixed rate. What is the present value of floating rate cash flows, assuming $1 notional principal

  Verify the yield rate

Based on the data provided, verify the yield rate. On May 1, 2020, Blackhawks Industries Ltd. issued $ 2,000,000, 8% bonds and received cash proceeds

  How much is the firm budgeted cash balance at december

How much is the firm's budgeted cash balance at December 31? Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.

  What should be the required initial investment

What should be the required initial investment at the starting of the first year if the fund earns 11%?

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