Calculate the net present value for this project

Assignment Help Financial Management

Reference no: EM132015797

Suppose you're presented with a proposal for a project that costs $4, 200 and will bring in $20, 100 the first year. The next year, you'll have to pay out S15, 500.

With a cost of capital of 12%, calculate the net present value (NPV) for this project. The NPV of the project is $. (Round to the nearest cent.)

Reference no: EM132015797

Questions Cloud

How is it taxed if the company is a hedger and a speculator : What is the total profit? How is it taxed if the company is a hedger and a speculator? Assume that the company has a December 31 year end.

What is the project profitability index : The project's initial investment is $43974 and the firm's weighted average cost of capital 10.7 per cent. What is the project's profitability index?

Find the standard deviation of the rate of return : Suppose you have a project that has a 0.8 chance of doubling your investment in a year and a 0.2 chance of halving your investment in a year.

Prepare journal entries to record the preceding information : Prepare journal entries to record the preceding information in the general ledger accounts for the Park Building Capital Projects Fund

Calculate the net present value for this project : With a cost of capital of 12%, calculate the net present value (NPV) for this project. The NPV of the project is $. (Round to the nearest cent.)

What range of returns would you expect to see : The historical average annual return for the asset was 7.4 percent and the standard deviation was 16.4 percent.

Identify the internal rate of return of your investment : You hold the bond for four years and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 4.89% when you purchased.

?rms cost of equity after recapitalization : Risk free rate is 6% and market return is 14%. How much would be the ?rms cost of equity after this recapitalization?

Evaluate the positive aspects of eoq : Evaluate the positive aspects of EOQ and lean inventory management, based on the strengths of each. Compare and contrast where the tools are most advantageous

User Account

All Pages