Computing project-s npv

Assignment Help Project Management
Reference no: EM1339898

Q1) Herrolds resorts is considering a new project whose data are shown below. The equipment that would be used has a 3 year tax life would be deprecated by the straight line method over the project's 3 year life and would have zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3 year life. What is the project's NPV? If you are working this problem by hand rather than by computer, ignore small rounding differences between your answer and the choices given (hint: cash flows are constant in Years 1-3)

WACC 10%
Net investment cost (depreciable basis) $65,000
Straight line depr'n rate 33.33%
Sales revenues $70,000
Operating costs excl. depr'n $25,000
Tax rate 35%

Reference no: EM1339898

Questions Cloud

Elucidate the differences among the two and why economics : Microeconomics and macroeconomics: Elucidate the differences among the two and why economics is divided into these two subdivisions.
Asymmetric information : The problems associated with asymmetric information to explain why the insurance companies might include deductibles as part of their policies.
Ancestry tests on autosomal markers the most reliable : are ancestry dna tests(mtDNA,Y-chromosome STR test) reliable.
Explain employer discrimination law : Explain Employer Discrimination Law and What are some ways that employers can ensure interviewers do not violate employment discrimination laws
Computing project-s npv : What is the project's NPV? If you are working this problem by hand rather than by computer.
Explain why do organization that bundle products : Explain why do organization which bundle products and services have an advantage over those that don't or can't offer this option.
Northern american english colonies : Explain ALL the ways land was acquired by white Europeans in the Northern American English colonies. Also, explain the meaning of "free and common socage" and what this type of ownership meant for land owners.
Explain sarbanes-oxley act and section 803 : Explain Sarbanes-Oxley Act and Section 803 and Do we really need to have the CEO and CFO sign off on the quarterly and annual reports
Define how the structure of dna allows : define the structure and function of deoxyribonucleic acid (DNA) as the molecule of inheritance.

Reviews

Write a Review

Project Management Questions & Answers

  Computing the internal rate of return for project

Compute the internal rate of return for each project.

  Computing reward to risk ratio for project

The expected return and standard deviation of project B is 25% and 20%, respectively. The risk-free rate is 8%. What is the reward to risk ratio for project A?

  Evaluate the use of complex models of project risk

Critically analyse the concept of risk; discuss how it can be measured and ranked and outline how a project risk management strategy may be constructed.

  List key stages of a typical procurement cycle

List key stages of a typical procurement cycle

  Adding value under new vision of portfolio management

Whose advice would you seek regarding the pipeline projects? How would you evaluate them to see if they add value under your new "vision" of portfolio management?

  Explaining planning a scrupulous effort

Taking a cue from the above, planning is a scrupulous effort that needs to be well documented in order for projects to succeed.

  Time value of money related finance methods

Norman Harvey Bank in order to immediately invest the entire $20,000 into the West Bank term deposit account being offered.

  Responsibilities of the project manager

Is it possible for a project to have more than one critical path? Responsibilities of the project manager.

  Objective of project meet constraints of quality and cost

The objective is that the project may meet the constraints of quality, cost and schedule in time.

  Application software in the field of accounting

Suppose you are the project manager of a team of software specialists working on a project to produce a piece of application software in the field of accounting.

  Cost function of the market requirement

Is cost often a function of the market requirements and can high quality is achieved at any cost point? Why or why not?

  Kinds of scheduling constraints

What kinds of scheduling constraints are common? What factors might intervene between the plan and its execution to disrupt the resources assigned to the project?

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