Conduct discounted cash ?ow calculation

Assignment Help Operation Management

Reference no: EM13954580

1. Conduct a discounted cash ?ow calculation to determine the NPV of the following project, assuming a required rate of return of 0.2. The project will cost $75,000 but will result in cash in?ows of $20,000, $25,000, $30,000, and $50,000 in each of the next four years.

2. In Problem 1, assume that the in?ows are uncertain but normally distributed with standard deviations of $1000, $1500, $2000, and $3500, respectively. Find the mean forecast NPV. What is the probability the actual NPV will be positive?

Reference no: EM13954580

Questions Cloud

Job costing system or process costing system : When are companies likely to use a job costing system or process costing system? Describe the specific characteristics of each system and provide several examples (i.e. at least two) from companies in your community for each system (i.e. at least fou..

External and internal environments : Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database, in th..

What is the minimum-cost schedule for the bank : The workload in many areas of bank operations has the characteristics of a nonuniform distribution with respect to time of day. For example, at Chase Manhattan Bank in New York, the number of domestic money transfer requests received from customers, ..

Consolidated financial statements of jkl plc : You are the Chief Accountant of JKL plc, a UK company that has three wholly-owned overseas subsidiaries. Company A is located in Spain. The company assembles computer terminals from materials provided by JKL plc. Once assembled, the computer termin..

Conduct discounted cash ?ow calculation : Conduct a discounted cash ?ow calculation to determine the NPV of the following project, assuming a required rate of return of 0.2. The project will cost $75,000 but will result in cash in?ows of $20,000, $25,000, $30,000, and $50,000 in each of the ..

What is the probability of a crop failure in any given year : Given a randomly selected chicken has hookworm, what is the probability it is from the red house?

Financially harm the minority shareholders : Give examples of ways in which a sport team majority owner could violate fiduciary duties and financially harm the minority shareholders.

Write socket base double side chat using graphical interface : Write a socket based double side chat using graphical interface. Both the client and server will show a text area, a text box and a "send" button.

What is the partition function of this system : What is the probability of finding both particles in the same single-particle state, for the three cases of distinguishable particles, identical bosons, and identical fermions?

User Account

All Pages