Compute present value of net non-recurring investment

Assignment Help Financial Management

Reference no: EM131049237

Sancore Inc. decided to invest in a project costing $35,000. It is assumed that all of $8,000 working capital will be recovered at the end of the project, which is four years. The opportunity cost of capital is 10%. Compute the present value of net non-recurring investment of the project. (Do not round intermediate calculation. Round the final answer to the nearest dollar.)

Reference no: EM131049237

Questions Cloud

Cost of equity and corporate tax rate-levered value : Cavo Corporation expects an EBIT of $23,000 every year forever. The company currently has no debt, and its cost of equity is 15 percent. The corporate tax rate is 35 percent. What is the current value of the company? What will the value of the firm b..

What benefits do businesses gain by offering wireless intern : Then determine what the draw is for the business to provide such a service. 3) What benefits do businesses gain by offering wireless Internet access?

Case problem with sample answer : Case Problem with Sample Answer A West Virginia bank ran its asset value from $100 million to $1 billion over seven years by aggressively marketing subprime loans. The Office of the Comptroller of the Currency, a federal regulator, audited the ban..

Managerial economics-a problem solving approach : Spend 2 or 3 hours observing the organization in which you are employed. During the observation, identify internal and external interactions of the organization. You can talk to stakeholders who might have information relating to external interact..

Compute present value of net non-recurring investment : Sancore Inc. decided to invest in a project costing $35,000. It is assumed that all of $8,000 working capital will be recovered at the end of the project, which is four years. The opportunity cost of capital is 10%. Compute the present value of net n..

Money valuation in the second stage : It becomes wildly successful and he sought out a VC to assist with opening a chain of these restaurants. After the first stage of funding the VC had a 43% ownership stake in The Mad Cow. In the second stage of financing the VC contributed $32 mill..

What annual rate of return is implied : What annual rate of return is implied on a $2,500 loan taken next year when $5,250 must be repaid in year 6? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Short-term assets and short-term debt-paying ability : Prepare an evaluation that compares the financial performance of two companies of your choice Part 1: Liquidity Ratios Review the ratios related to the liquidity of short-term assets and short-term debt-paying ability. Select which liquidity ratios w..

What is the affective annual rate : A firm sells its $1,110,000 receivables to a factor for $1,076,700. The average collection period is 1 month. What is the effective annual rate on this arrangement? What is the affective annual rate?

User Account

All Pages