Computing npv if discount rate is given

Assignment Help Finance Basics

Reference no: EM1310692

Q1) Briarcrest Condiments is spice-making firm. Newly, it developed new process for producing spices. Process needs new machinery which would cost $2,109,194 have a life of five years, and would make the cash flows given in the following table.

Year   Cash Flow
1     $513,316
2      -225,749
3      1,000,114
4       849,873
5        758,037

Compute the NPV if discount rate is 13.74%?

Q2) Compute duration of 2-year Euro-note with $100,000 par value and annual coupon rate of 10%if today’s yield to maturity is 11.5%. Determine the duration be if today’s yield was 5.5%?

Reference no: EM1310692

Questions Cloud

Computing npv of investment if marginal tax rate is given : Marginal tax rate is 35%, and suitable discount rate is 9%. Compute the NPV of this investment. Must this project be accepted or rejected?

Point-to-point communication links : Suppose there is the wide-area network with N nodes, where N ≥ 2. Find out the smallest number of the point-to-point communication links such that each node within the network is able to talk to one another node?

Dissociative identity disorder : Jordan's therapist proposes that Jordan made a dissociative identity disorder in order to misbehave without feeling a strong sense of personal shame.

Evaluation of full charges and variable costs : Evaluation of Full charges, Variable costs, Market price & Negotiated price to be treated as Transfer Price.

Computing npv if discount rate is given : Briarcrest Condiments is spice-making firm. Newly, it developed new process for producing spices. Compute the NPV if discount rate is 13.74%?

Basic strategic planning questions : What the basic strategic planning questions must be addressed for the infrastructure? Suppose that x and y are “int” variables and “ch” is a char variable.

Description of the term paper : When Julian Rotter explained Kim, which of the given would you find in his description?

Harvest the forest analyzing the pros and cons : Calculation of Time period when the company should harvest the forest analyzing the pros and cons.

Characteristics that distinguish nfp from business : Identify characteristics that distinguish NFP from business enterprises. Specifically identify, from most important to least important, five accounting issues relevant to NFP financial reporting and explain your rationale by reference to existing ..

User Account

All Pages