Calculate the NPV of this project

Assignment Help Accounting Basics
Reference no: EM132988997

Question - Always Striving Inc. has a project under consideration with the following estimated cash flows: An initial investment of $370,000. A return of $215,000 in year three and then continuing yearly for ten additional years. Additionally, they must forego an existing business that returns $26,000 annually. The firm's cost of capital is 7%. Calculate the NPV of this project.

Reference no: EM132988997

Questions Cloud

Discuss how professional ethics apply to that career : Discuss how Professional Ethics apply to that career. The goal of this discussion is to gain a personal understanding of Professional Ethics.
What are the five ways to value the cost of new common stock : What are the five ways to value the cost of new common stock for a company that doesn't pay a dividend? What are some of issues or short comings of these models
How does nutrition relate to the disease process : How does nutrition relate to the disease process? List at least 3 methods you can apply to nursing practice. Brief overview of the selected disease.
Comprehensive project plan : Select the most critical information from each that investors need to know to make an informed investment decision.
Calculate the NPV of this project : Additionally, they must forego an existing business that returns $26,000 annually. The firm's cost of capital is 7%. Calculate the NPV of this project
Describe the use of an eco-map in assessment : Post a description of the importance of using multiple evidence-based tools (including quantitative, open ended, and ecologically focused) to assess children.
Programming languages provide concept called loop : Almost all the programming languages provide a concept called loop, which helps in executing one
Create an eco-map to represent claudia situation : Create an eco-map to represent Claudia's situation. Describe how the ecological perspective of assessment influenced how the social worker interacted with Claud
Outline for basic qualitative risk assessment plan : Create an outline for a basic qualitative risk assessment plan. Define the scope and boundaries for the risk assessment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the result for richard

Richard sold two machines used in his business. They were the only two assets sold during the year. After netting the two transactions, what is the result?

  Record spirits payroll entries for the month of february

Spirit Corporation reported the following payroll-related costs for the month of February. Record Spirit's payroll entries for the month of February

  How activity based costing model differs from conventional

How an Activity Based Costing (ABC) model differs from a conventional costing system when goods are manufactured with differing batch sizes.

  Vera corporation bases its budgets on the activity measure

vera corporation bases its budgets on the activity measure customers served. during september the company planned to

  Assuming a market price per share of 128 for the preferred

assuming a market price per share of 128 for the preferred stock and 7.80 for the common stock calculate the average

  Prepare the entry required to reflect the transfer of funds

Determine and Prepare the entry required to reflect the transfer of funds from the General Fund to the Debt Service Fund. and discuss the term general fund mean

  How are leases and installment notes the same

How are leases and installment notes the same? How do they differ?

  Prepare a 10-column worksheet for the year ended

Prepare a 10-column worksheet for the year ended 30 June 2011. B. Prepare the income statement, balance sheet and statement of changes in equity

  Compute the break-even point in dollar sales for both plans

This year Calypso Company sold 60,000 units of its only product for $20 per unit. Compute break-even point in dollar sales for both (a) plan 1 and (b) plan 2

  The yorktown motor pool internal service fund

The Yorktown Motor Pool Internal Service Fund had the following transactions and events during January 2013. Using the data in exercise E7- 10 where applicable as well as your solution to the exercise prepare journal entries to record the transact..

  Explain the concept of roi in detail

Synthesize data to explain the concept of ROI and describe how the use of an activity-based costing system can improve the company's ROI and the potential.

  Determine the total cost recovery deduction

Determine the total cost recovery deduction including section 179 immediate expensing and MACRS depreciation the taxpayer may deduct for 2019

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