Considering an investment proposal

Assignment Help Financial Accounting

Reference no: EM13777663

Parks Company is considering an investment proposal in which a working captial investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10% the investment's net present value is:

A. $1,290

B. ($1,290)

C. $2,000

D. $4,350

Reference no: EM13777663

Questions Cloud

Nest present value of this machine to nearest whole dollar : The Whitton Company uses a discount rate of 16%. The company has an opportunity to buy a machine now for $18,000 that will yield cash inflows of $10,000 per year for each of the next three years. The machine would have no salvage value. The nest pres..

Developing master budget and pro-forma financial statement : The Gold Bay Hotel is in the process of developing a master budget and pro-forma financial statements for 1999. The beginning balance sheet for the fiscal year 1999 is estimated to be: During the year the hotel expects to rent 30,000 rooms. Rooms r..

Contrast the vocational rehabilitation process : Compare and contrast the vocational rehabilitation process between public, private for public, and community based nonprofit vocational rehabilitation practice. Please provide an example for your response

How do factors like high self-efficacy expectations help us : How do factors like high self-efficacy expectations, control, and humor help us adjust to stress?

Considering an investment proposal : Parks Company is considering an investment proposal in which a working captial investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewher..

Environmental issues that relate to the clean water act : An environmental group, SafePack Materials Pollute, has sprung up and launched an Internet campaign geared toward compelling fruit producers to stop purchasing your packing materials. The situation at hand raises environmental issues that relate t..

Contemporary conception of human rights : Reflect on the contemporary relevance of ancient codes, documents, and artifacts that contributed to the evolution of our modern conception of human rights. Your essay should answer these questions:

Capital budgeting method-annual incremental net operating : The capital budgeting method that divides a project's annual incremental net operating income by the initial investment is the:

Decision-making and philosophy : Draft a six- to eight-page paper based upon a life-changing decision you or someone in your community has had to make. Address the following:

User Account

All Pages