Calculate the present value of the cash inflows of project

Assignment Help Financial Management

Reference no: EM131865905

Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made Simple. The company has estimated that the revision will cost $90,000. Cash flows from increased sales will be $21,600 the first year. These cash flows will increase by 4 percent per year. The book will go out of print five years from now. Assume that the initial cost is paid now and revenues are received at the end of each year.

If the company requires a return of 10 percent for such an investment, calculate the present value of the cash inflows of the project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131865905

Questions Cloud

Match the correct organelle with its function : Match the correct organelle with its function listed below:

What is the current value of this company stock : You forecast a company's dividends for the next four years. What is the current value of this company's stock?

Compute the net cash provided by operating activities : Decrease in interest payable $1,000. Gain on the retireent of bonds $32,300. The net cash provided (used) by operating activities is _____

Differences between prokaryotes and eukaryotes : Select 3 differences between prokaryotes and eukaryotes from the list below:

Calculate the present value of the cash inflows of project : If the company requires a return of 10 percent for such an investment, calculate the present value of the cash inflows of the project.

What steps can you take to reduce your ecological footprint : Summarize your quiz results. Which areas did you have the least and which the biggest impact on the earth (food, shelter, mobility, resources, or goods)?

Write a letter to equifax customers : Write a letter to Equifax customers. Your book recommends using the indirect approach when delivering sensitive information.

What is the present value of the payments : What is the present value of the payments if they are in the form of an ordinary annuity? What is the future value if the payments are an ordinary annuity?

How much is net income for the month of march : Tintin Company had the following summarized operations for the month of March: How much is net income for the month of March

User Account

All Pages