User Account

All Pages

Calculate the npv and irr on the project

Assignment Help Finance Basics
Reference no: EM131967494

The YayForWinterBreak Company wants to calculate the NPV and IRR on the following project:

Cost is $22,000 today, with end-of-year cash flows of $10,000, $10,000, and $6,500, Years 1 through 3 respectively for three years. Assume the cost of capital is 8%. 

a) NPV?

b) IRR?

c) Do you accept or reject the project, and why?

Reference no: EM131967494

Questions Cloud

What will be the impact on the company in the future : What suggestion you will give to company for cost savings. What will be the impact on the company in the future?
What is the wacc of zombie corporation : The Zombie Corporation's common stock has a beta of 1.2. The risk-free rate is 4.8% and the expected return on the market is 11%.
Calculate the cost of goods sold using the fifo : Calculate the cost of goods sold using the FIFO periodic inventory method, assuming that two of the three players were sold by the end of December.
Is it good or bad or somewhere in between : Is it good or bad or somewhere in between? What about the impact on MNEs? Do they react to this or not?
Calculate the npv and irr on the project : The YayForWinterBreak Company wants to calculate the NPV and IRR on the following project:
Calculate the weighted average number of shares outstanding : Calculate the weighted average number of shares outstanding at 12/31/06. Calculate whether each security in the firm's capital structure is dilutive.
Plan for the long term : Should you set an expected profit level up front or just plan for the long term and not worry about the share prices?
What else should be considered when taking out a loan : Do you think picking a loan or investment should be based solely on the potential interest earned/paid? What else should be considered when taking out a loan?
Explain what would you advise manele to do : He is thinking about going to work for an investment company where he can earn R40 000 per year. What would you advise Manele to do?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the exercise price of the conversion feature

An investor come to you and states that she has the option of converting her $2000 XYZ Corporate Bond into 20.50 shares of XYZ common stock. If the XYZ Bond pays a coupon rate of 5.25%, has a call price of 105, and matures in 7 years, what is the ..

  You have secured a loan from your bank for two years to

you have secured a loan from your bank for two years to build your home. the terms of the loan are that you will borrow

  New labor costs to customers

If Chester were to pass on half the new labor costs to their customers, how many units of product Cone would need to be sold next round to break even on the product?

  What is the annual after-tax real rate of return

If the inflation rate is 7% per year, what is the annual after-tax real rate of return?

  Change for business and government organizations

Today's competitive environment drives a lot of change for business and government organizations. Leadership, therefore, has to continually

  Describe decision making as to keep the stock

Describe Decision making as to keep the stock or sell the given stock and The news of the competitor's discovery has not been made public

  Compute the market value of the bonds

Compute the market value of the bonds. How many bonds will the firm have to issue to receive the needed funds? What is the firm's after-tax cost of debt if the firm's tax rate is 34 percent?

  Find the present value at time 0 of payments

Find the present value at time 0 of payments of $4800 a year paid at the end of each month for 7 years. If the nominal interest rate is 9% convertible every 4 months.

  Evaluate and summarize the selected two articles

Evaluate and summarize two articles and state what you learned. If you were discussing the article with a colleague, what three important points would you want to explain? How can knowledge of what you learned help you in your career?

  A treasury bond has a face value of 30000 and a quoted

a treasury bond has a face value of 30000 and a quoted price of 10220. what is the bonds dollar price?a 30002.80b

  Demand for car rentals

A car rental firm is currently renting 800 cars per year. How many cars will the firm be renting in 10 years if the demand for car rentals is expected to increase by 7% per year?

  Prepare appropriate journal entries to record salaries

Lee Financial Services pays employees monthly. Payroll information is given below for January 2011, 1st month of Lee's fiscal year. Suppose that none of employees exceeded any relevant wage base.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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