Calculate the npv of a initial investment

Assignment Help Finance Basics
Reference no: EM133115986

City University would like to set up a scholarship that pa RM30,000 in tuition fees. Given the cost of capital is 10 expect the scholarship to last forever, how much should the scholarship is expected to start in 5 years time? 11. Calculate the NPV of a RM6,000 initial investment that i a cash flow of RM1,500 at constant prices, at the end of Assume the nominal cost of capital is 15% per annum a per annum. Should you proceed with the investment?

Reference no: EM133115986

Questions Cloud

Difference between asset allocation and security selection : How does Sarbanes-Oxley improve the quality of information in the markets?
How much did Zaid charge to income statement : This included 270 for an advertising campaign for six months to 29 February 20-8. How much did Zaid charge to income statement for the year ended
Increase your chances of career or life success : Reflect on how the concepts in this course can be applied to real-world situations and can increase your chances of career or life success.
What is the value of a bond : What is the value of a bond that has a par value of $1,000, a coupon rate of 9.04 percent (paid annually), and that matures in 9 years? Assume a required rate o
Calculate the npv of a initial investment : City University would like to set up a scholarship that pa RM30,000 in tuition fees. Given the cost of capital is 10 expect the scholarship to last forever, how
Prepare financial statements for the month : Interest on bank loan accrued but not paid on January 31 total $100. Prepare financial statements for the month. Journalize and post adjusting entries
Role of nonprofit healthcare delivery organizations : You work for a freshman congressman who is interested in healthcare. He wants a briefing paper on the role of nonprofit healthcare delivery organizations:
Explain the financial services for activities : 1. An offshore center is a country which offers to the residents and non-residents of other countries the ability to establish companies and to use its financia
What is the company percentage cost of equity : The stock sold for $50 per share just after the dividend was paid. What is the company's percentage cost of equity

Reviews

Write a Review

Finance Basics Questions & Answers

  A comparable bond on the list

A comparable bond on the list

  What is npv if the firm investment is entitled to immediate

What is NPV if the firm investment is entitled to immediate 100% bonus depreciation?

  Difference between trend and comparative analysis

What is the difference between trend and comparative analysis? When would an analysis choose the importance of trends versus comparative evaluations and why?

  Requiring the presentation of a credit guide

Apart from requiring the presentation of a Credit Guide, the NCCP Act says nothing about what a mortgage broker should say about him

  Discuss the role of the small business administration

1) Describe the benefits to entrepreneurs of belonging to business incubators and seed accelerators.

  Impact the budget deficit and the national debt

How does the cut in Government spending impact the budget deficit and the national debt?

  How each recommended system applies to Porters Five Forces

Explain why you have selected these trends for the company. How do the trends you selected apply to this particular business?

  Normative accounting theory and positive accounting theory

From the early 1970s, accounting theory become more involved in empirical or positive theory development and testing. Positive accounting theorists concentrate

  Distinguish between the capital allocation line

Distinguish between the capital allocation line and the capital market line?

  Prepare a contract for the sale of the goods

Your client, Widgets, Inc., has a factory in Detroit where they produce widgets for sale. They have recently received a large order from Machines, Inc.

  Find what annual rate did the buyer earn on purchase

A coin that was featured in a famous novel sold at auction in 2014 for $6,581,000. The coin had a face value of $10 when it was issued in 1791.

  Bond returns what is the historical real return on

bond returns what is the historical real return on long-term government bonds on long-term corporate

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