Cash flows for capital project

Assignment Help Financial Management
Reference no: EM131566620

Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent. Year 0 1 2 3 4 5 Cash Flows $-36301 $13650 $13450 $15700 $8100 $3750 NPV=1905. IRR=18.4% NPV=8838. IRR=18.4% NPV=1905. IRR=10.0% NPV=8838. IRR=10.0%

Reference no: EM131566620

Questions Cloud

Essay on like water for chocolate : Expert who ever read or familiar with book like Water For Chocolate
Think of examples of controlling performance : Think of examples of controlling performance in your daily life. Do you control your use of time? Use of money?
Writing and technology and their efects on language : How do you react to what you're reading? Can you think of experiences from your own life that either support or contradict what you're reading.
List the ethical leadership styles described in the textbook : List the ethical leadership styles described in the textbook. Which do you think is the most conducive to successful project management and why?
Cash flows for capital project : Given the following cash flows for a capital project, calculate the NPV and IRR.
What is project management : What is project management? What is the project manager's role in a health care IT project?
Estimate the enterprise value of heavy metal : Estimate enterprise value of Heavy Metal. If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price.
Particular application development : Is one better than the other or is one used for particular application development?
Find the lengths of the sides of a rectangle : In a right-angled triangle, the hypotenuse is 34 cm. One of the short sides is 14 cm longer than the other. Find the lengths of the two short sides.

Reviews

Write a Review

Financial Management Questions & Answers

  Company capital structure weights on market value basis

What are the company’s capital structure weights on a book value basis? What are the company’s capital structure weights on a market value basis?

  No debts return on assets before taxes

assume that No debts return on assets before taxes will continue to be 20% forever i.e, that it faces zero risk. Should it borrow at the given rate?

  Fifth national bank just issued some new preferred stock

Fifth National Bank just issued some new preferred stock. The issue will pay an annual dividend of $24 in perpetuity, beginning 13 years from now. If the market requires a return of 3.8 percent on this investment, how much does a share of preferred s..

  What is the cards effective annual rate

If the APR is stated as 21.55%, but interest is compounded monthly, what is the card's effective annual rate (EFF%)?

  What is the future worth of this investment

Aerotron Electronics is considering purchase of water filtration system to assist in circuit board manufacturing. What is the future worth of this investment?

  What is a D. total marketable investment

D. has $750 in cash, $2000 in savings account, $34,300 in stocks, $5,500 in bonds, and owns a car worth $15,500. She had $1,500 in credit card payments and an education loan of $24,000 of which $2,700 is due during the current year. What is a D. tota..

  Sales outstanding-cost of trade credit to customers

McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,311,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 50 days after their purchases. What is the days sales outstan..

  Consider the four investments

You invest $3,000 annually in a mutual fund that earns 10 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 20 years? You invest $3,000 annually in a mutual fund with a 5 percent load fee so tha..

  Bankruptcy in my humble opinion

Did you not shop at KMart when it was in bankruptcy-company is now or ever was in bankruptcy in my humble opinion

  What must the expected return on the market be

A stock has an expected return of 10.7 percent, its beta is 0.98, and the risk-free rate is 6.15 percent. What must the expected return on the market be?

  What is the companys required return

CAPM Required Return A company has a beta of .67. If the market return is expected to be 13.7 percent and the risk-free rate is 5.85 percent, what is the company's required return?

  Minimum increase demand for your products

Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds.

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