Company be indifferent between accepting-rejecting project

Assignment Help Financial Management
Reference no: EM131985309

Young Pharmaceuticals is considering a drug project that costs $2.41 million today and is expected to generate end-of-year annual cash flows of $209,000 forever.

At what discount rate would the company be indifferent between accepting or rejecting the project? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate %

Reference no: EM131985309

Questions Cloud

About what is the principal balance on the loan : After 12 years, Bill wants to pay off his house; about what is the principal balance on the loan?
What is the present value of winnings : If the appropriate interest rate is 6.3 percent, what is the present value of your winnings?
What is the maximum amount your scholarship : What is the maximum amount your scholarship will be able to pay out each year?
How many months will it be before he pays off debt : If Simon makes monthly payments of $60, how many months will it be before he pays off the debt?
Company be indifferent between accepting-rejecting project : At what discount rate would the company be indifferent between accepting or rejecting the project?
What is the expected return on the optimal risky portfolio : What is the expected return on the optimal risky portfolio is approximately?
The correlation coefficient between the returns : If the variance of return on the portfolio is .0380, the correlation coefficient between the returns on A and B is ________.
Standard deviation of return on risky portfolio : The risk-free rate, as well as investor's borrowing rate is 10%. The standard deviation of return on risky portfolio is 20%
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.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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