User Account

All Pages

Compute the pi statistic for project x

Assignment Help Finance Basics
Reference no: EM132376692

1. Suppose you sell a fixed asset for $127,000 when it's book value is $159,000. If your company's marginal tax rate is 33%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

2. Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 6 percent.

Time 0 1 2 3 4 5

Cash flow -84 -84 0 119 94 69

Reference no: EM132376692

Questions Cloud

Compute the npv for project x with the cash flows : 1. Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 10 percent.
Differences between virtualization and cloud computing : Discuss the differences between Virtualization and Cloud Computing.
Discussion about the age discrimination in employment act : Since the passage of the Civil Rights Act in 1964, more employment legislation in the area of equal employment opportunity (EEO) has become the law of the land.
What are the four basic cycles of a company : What are the four basic cycles of a company? Please explain.
Compute the pi statistic for project x : Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of
Difference between input-process and output indicators : Write explanation and then give examples of Key Performance Indicators. Explain the difference between input, process, and output indicators.
Explain one theory or conceptual framework of project : Post a brief description of your Capstone topic. Explain at least one theory or conceptual framework and its relationship to your topic, including why you.
Cost to establish a business : The cost to establish a business is $300,000. The ROI is 20% and the risk factor is 3 to 4. Would you recommend spending money on this deal and why?
What discount rate would make you indifferent : What discount rate would make you indifferent between receiving $3,438.00 per year forever and $5,703.00 per year for 28.00 years?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the break-even levels of ebit

Leverage and Stock Value. Ignoring taxes in Problem, what is the price per share of equity under Plan I? Plan II? What principle is illustrated by your answers?

  What is the quick ratio

You are analyzing a company that has cash of $11,200, accounts receivable of $27,800, fixed assets of $124,600, accounts payable of $31,300, and inventory of $56,900. What is the quick ratio.

  You own a portfolio that has 1900 invested in stock a and

you own a portfolio that has 1900 invested in stock a and 2700 invested in stock b. if the expected returns on these

  What is a hybrid security

What is a hybrid security, and how should it be reflected on the balance sheet, income statement, statement of cash flows, and statement of shareholders' equity?

  Why you believe the first builds customer value

Choose three companies. Post your thoughts on why you believe the first builds customer value through value excellence, the second through operational.

  Why must working capital be managed

1. why must working capital be "managed"? 2. what is(are) the goal(s) of working capital management? 3. create an example and explain the cash budget

  The default risk of corporate bonds decreases

If the default risk of corporate bonds decreases, what will happen to the demand for corporate bonds, the price of corporate bonds, the demand for treasuries, and the price for treasuries?

  Discuss the financial implications of following such

discuss the financial implications of following such policy and describe the aspects of the policy chosen that work and

  Calculate free cash flow from these reported numbers

ACC306 Calculate free cash flow using Method 1 and Method 2 - Calculate free cash flow from these reported numbers

  Smith reported the following for 2006 beginning market

smith reported the following for 2006. beginning market price 20.00 average market price 24.00 ending market price

  Firm opportunity cost of capital

Why is the firm's cost of capital often referred to as the firm's opportunity cost of capital

  Computing risk premium of a firm common stock

Your firm's common stock has a beta coefficient of 0.80. The risk free rate of interest is 7% and the market risk premium is 4.5%. What is the risk premium on your firm's common stock?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd