Calculate the NPV of the investment

Assignment Help Accounting Basics
Reference no: EM133008558

Question - You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, $5,000 at the end of year 2, $6,000 at the end of year 3 and $3,000 at the end of year 4. Calculate the NPV of the investment using a cost of capital of j1=8.5%. Round your answer to the nearest dollar.

Reference no: EM133008558

Questions Cloud

How would you approach this to effectively and resources : They have asked your advice regarding the implementation of a new system. How would you approach this to effectively and resources
At what mileage should the warranty be set : A manufacturing process produces auto tires. A sample of miles at replacement is recorded in DATA. At what mileage should the warranty be set
What is palmetto accounts receivable turnover ratio : Palmetto also had beginning and ending accounts receivable balances of $12,000 and $18,000, respectively. What is Palmetto's accounts receivable turnover ratio
What is the company margin of safety in dollars : The company has no beginning or ending inventories and produced and sold 10,000 units during the month. What is the company margin of safety in dollars
Calculate the NPV of the investment : You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, Calculate the NPV of the investment
What must rate of return be to cover your child education : The cost of college tuition is $300,000 and you have $65,000 to invest right now. What must your rate of return be to cover your child's education
Calculate the return on capital employed : North division sells luxury motor vehicles, which it manufactures in a fully automated production plant. Calculate the return on capital employed
Compute the present value factors : Using the present value method, determine whether the company should purchase the machine. Compute the present value factors
How and where are the differences reconciled on tax return : How and where are the differences reconciled on the tax return? On what basis is the balance sheet schedule on the tax return prepared

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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