Cash outflows or the initial investment and net cash inflows

Assignment Help Financial Management
Reference no: EM132070209

NPV considers cash flows and not accrual accounting. These cash flows are cash outflows or the initial investment and net cash inflows.  If we were opening a new Greek restaurant called Mike's Crazy Greek Gyros' ( I am Greek and love Gyro's).  What would be some of the initial costs or investment of opening up this restaurant and  what are the cash inflows ( Benefits) for each year of the useful life of this business. 

Reference no: EM132070209

Questions Cloud

Compare the wacc of the two companies : What is Q’s cost of equity capital? Compare the WACC of the two companies. What do you conclude?
What was the annual increase in the value of comic book : The comic book was originally sold in 1943 for $.10. what was the annual increase in the value of the comic book.
What are the advantages and disadvantages of irr : What data characteristics are necessary for quality information? What are the advantages and disadvantages of IRR?
What can increase or decrease the roe : The return on equity (ROE) is an important ratio to investors. What can increase or decrease the ROE?
Cash outflows or the initial investment and net cash inflows : NPV considers cash flows and not accrual accounting. These cash flows are cash outflows or the initial investment and net cash inflows.
Offered some securities for sale to public : In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public.
Paid to the holders of common stock : Compute the total amount that will be paid to the holders of common stock.
What will be net profit or loss on these option positions : What will be your net profit or loss on these option positions if the stock price is $23 on the day the options expire? Ignore trading costs and taxes.
Discuss three usefulness of balance of payments data : Balance of payments has become a topical issue globally. Discuss three usefulness of balance of payments data to Ghana.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the teminal cash flow

Veridian Dynamics is considering the puchase of a new cloning machine, What is the Teminal Cash Flow?

  Regarding three investment opportunities

Project 1 has a project beta of 2.0 and you have estimated that the project’s NPV using a cost of capital of 20% equals zero.

  Market ratio results against the industry or main competitor

Write analysis of the market ratio results that you found. Compare the market ratio results against the industry or main competitor.

  The correlation between the two stocks

Consider that IBM is trading at $144 and Exxon Mobil is trading at $ 88. The correlation between the two stocks is 33%

  Expected return on the complete portfolio

The return on the risky portfolio is 18%. The risk-free rate as well as the investor's borrowing rate is 10%. The standard deviation of return on the risky portfolio is 20%. If the standard deviation on the complete portfolio is 25%, the expected ret..

  What is valley import after-tax cost of debt

What is Valley Import’s cost of equity? What is Valley Import’s after-tax cost of debt?

  Explain why these concepts are important to business leaders

Explain why these concepts are important to business leaders in Saudi Arabia. Search the internet for an academic or industry-related article.

  Rate-sensitive liabilities on the balance sheet

how could he or she take advantage by rebalancing rate-sensitive assets and rate-sensitive liabilities on the balance sheet?

  Call option-what should the stock price be

A call option on Jupiter Motors stock with an exercise price of $100 and one-year expiration is selling at $6. what should the stock price be?

  What was the compound annual return over past five years

Middlefield Motors has never paid any dividends. The firm’s stock was selling for 79.7 dollars per share 5 years ago. Today the stock is priced at 110.15 dollars. What was the compound annual return over the past 5 years? Answer as a rate in decimal ..

  What is your net dollar sales projection for year

what is your net dollar sales projection for this year?

  Sales and marketing

Today many companies have incorporated sales into the marketing department and termed it as "sales and marketing" department.

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