Calculate the net present value for this proposed project

Assignment Help Financial Management

Reference no: EM132068680

Managers of CVS Pharmacy are considering a new project. This project would be a new store in Odessa, Texas. They estimate the following expected net cash flows if the project is adopted.

Year 0: ($1,250,000)

Year 1: $200,000

Year 2: $500,000

Year 3: $400,000

Year 4: $300,000

Year 5: $200,000

Suppose that the appropriate discount rate for this project is 6%, compounded annually.

Calculate the net present value for this proposed project.

Do not round at intermediate steps in your calculation. Round your answer to the nearest dollar.

Reference no: EM132068680

Questions Cloud

Nelson has raised the maximum amount of short-term funds : What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?

Bank will refuse to renew loan and bankruptcy will result : If the company does not maintain a TIE ratio of at least 3 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris' TIE ratio?

Calculate profit margin and liabilities-to-assets ratio : Calculate Haslam's liabilities-to-assets ratio. Calculate Haslam's profit margin.

Identify potential new drilling project : Managers at Terlingua Drilling identify a potential new drilling project. Calculate the net present value for this proposed project.

Calculate the net present value for this proposed project : Calculate the net present value for this proposed project.

Major strengths and flaws in feedback control system : What do you see as the major strengths and flaws in the feedback control system used in the schools in this scenario?

What was the net operating working capital : What was the net operating working capital at the end of 2005?

Dividend analysis-particular discounted cash flow analysis : Consider the following statement “Dividend analysis and in particular DCF (Discounted cash flow analysis) of earnings data serves

Uses matrix structure organization : Provide an example of an airline that uses matrix structure organization.

User Account

All Pages