Calculate the net present value of the project

Assignment Help Finance Basics
Reference no: EM132491319

Northern Track is developing a special vehicle for Arctic exploration. The development requires investments [outlays] of $50,000 in year 1, $40,000 in year 2, and $30,000 in year 3. Net returns [inflows] starting at year 4 are expected to be $27,000 per year for the next 12 years. If the company requires a rate of return of 12%, calculate the net present value of the project.

Looking forward for your help.

Reference no: EM132491319

Questions Cloud

Develop a promotional campaign for campus : What is the central message of the promotional campaign? Explain why this is the central message that have chosen? develop a Promotional Campaign for Campus
How does current organizational culture and climate align : What are the attributes of the learning organization and how does it align (or support) the complex adaptive healthcare system? What leadership styles.
How much should you invest in the risk-free asset : You want your portfolio beta to be 1.30. Currently, your portfolio consists of $200 invested in stock A with a beta of 1.6 and $400 in stock B with a beta of.8.
Write a summary of dells distribution strategy : Is dell using intensive, selective, or exclusive distribution for its market coverage? Why is this appropriate for Dell's products and target markets?
Calculate the net present value of the project : If the company requires a rate of return of 12%, calculate the net present value of the project.
How the processes interact to affect the patient : Explain any racial/ethnic variables that may impact physiological functioning. Explain how these processes interact to affect the patient.
List and explain the components of the ratios : List and explain the components of the ratios that would be the most important for you to analyze before making an investment decision. Explain why you selected
What is the value of this swap to the swap bank : Does the swap bank make any money in this set of swap deals? What is the value of this swap to the swap bank annually in basis points? In dollars?
What is the purpose of your existence : In 750-1,000 words, answer each of the worldview questions according to your own personal perspective and worldview: What is the purpose of your existence?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd