Contract price to be received at the end of the contract

Assignment Help Financial Management

Reference no: EM131359064

ABC international considering to invest in 2 year project. Device setup cost 15000$ payable immediately. Working capital of 5000$ this will realesed at the end of contract.

cost of capital 12%, what is the minimum acceptable contract price to be received at the end of the contract?

Reference no: EM131359064

Questions Cloud

The required return on this investment : Track Software paid $5,000 in dividends in 2015. Suppose that an investor approached Stanley about buying 100% of his firm. If this investor believed that owning the company he could extract $5,000 per year in cash from the in perpetuity, what do you..

How many weeks will it be until these bonds mature : The 7.3 percent weekly coupon bonds of the Socratic Educational Services Co. are selling for $951, have a face value of $1,000, and have a yield to maturity of 8.35 percent. Approximately, how many weeks will it be until these bonds mature?

What is the cost of borrowing maximum amount of credit : MDM Inc. is considering factoring its receivable. The firm has credit sales of $600,000 per month and an average receivable balance of $600,000 with net 90 credit terms. What is the cost of borrowing the maximum amount of credit available to MDM Inc...

Accumulate funds to provide retirement annuity : Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president of research, Jill Moran. Ms. Moran, by contract, will retire at the end of exactly 12 years. How large a sum must Sunrise accumulate by the end of ye..

Contract price to be received at the end of the contract : ABC international considering to invest in 2 year project. Device setup cost 15000$ payable immediately. Working capital of 5000$ this will realesed at the end of contract. cost of capital 12%, what is the minimum acceptable contract price to be rece..

Cost of borrowing the maximum amount of credit available : MDM Inc. is considering factoring its receivable. The firm has credit sales of $600,000 per month and an average receivable balance of $600,000 with net 90 credit terms. What is the cost of borrowing the maximum amount of credit available to MDM Inc...

What is the amount of each coupon payment : Camulus issued a bond has a par value of $1,000, a current yield of 5.913 percent, monthly interest payments, and 19 years to maturity. The bond quote is 104.297. What is the amount of each coupon payment?

What is the current value : What is the current value of a $1,000 bond with a 8% annual coupon rate (paid annually) that matures in 9 years if the appropriate discount rate is 5%?

Pay for the entire share capital : Bs management estimate that if they were to acquire A they could save 100 000 $ annually after tax on administrative costs in running the new joint company. Additionally, they estimate that the P/E ratio of the new company would be 18. Corporate tax ..

User Account

All Pages