Could you show the all the calculation

Assignment Help Finance Basics
Reference no: EM132049237

Peter is considering two projects from the market. the first one's Initial Outlay (IO) is $4,500,000; Annual Cash Flows (CF) is $1,000,000; Life of system is 10 Years. And the second one's information is Initial Outlay (IO) is $8,000,000; Annual Cash Flows (CF) is $2,000,000; Life of System is 7 Years. It shows all the cash flows are after tax and depreciation and the flat rate of 12% is estimated as the risk in both of these projects. Could you show the all the calculation and which one is better?

Reference no: EM132049237

Questions Cloud

What is her holding period return for the year : One year later, when yields have fallen to 2%, she collects the annual coupon and sells the bond. What is her holding period return for the year?
Cost of new stock exceed the cost of retained earnings : By how much would the cost of new stock exceed the cost of retained earnings?
How much should she have accumulated on the day : If annual interest rates during retirement are expected to be 5%, how much should she have accumulated on the day that she retires?
Determine the options for nucleons future : Write your recommendation to Jeff and the compelling reasons that drove you to select this option as the best one for Nucleon, Inc.
Could you show the all the calculation : It shows all the cash flows are after tax and depreciation and the flat rate of 12% is estimated as the risk in both of these projects.
What is the company free cash flow for year : What is the company's free cash flow for year 1 of this project?
At what risk-free rate would these two stocks : At what risk-free rate would these two stocks be correctly priced?
What is projects npv : You are evaluating a project with the following expected cash flows: an initial investment of $9 million, followed by cash flows of $6, $8 and $15 million
How much did col make on investment : When she sells the bond 1 year later, the current yield on the bond is 6%. How much did Col make on this investment?

Reviews

Write a Review

Finance Basics Questions & Answers

  Managing the firms liabilities

Financial managers evaluating decision options or potential actions must consider and the financial manager may be responsible for any of the following;

  Plot the graph of npv for the project

Andrew Coal Mining, Inc. is considering opening a strip mine, the cost of which is $8.8 million. Cash flows will be $55.4 million, all coming at the end.

  What is the npv of pigpen project

United Pigpen is considering a proposal to manufacture high-protein hog feed.

  Thompson purchases under terms of 210 net 30 but it can

the thompson corporation projects an increase in sales from 1.5 million to 2 million but it needs an additional 300000

  What is the probability that at least half of the room

What is the probability that at least half of the rooms are occupied on a given day?

  If reserve requirements on checkable deposits were set at

a if reserve requirements on checkable deposits were set at zero the amount of multiple deposit expansion would go on

  Using the black-scholes option pricing model what would be

assume you have been given the following information on purcell industriescurrent stock price 18exercise price of

  Describe tax issues while transferring property

Describe Tax issues while transferring property from proprietorship business to a corporation and What are the tax issues for Polly and Flycatcher

  What is the cost of the trade credit

If you pay the bill on the 50th day after the purchase, what is the cost of the trade credit you have used for the 35-day period after the discount period ended

  An executiversquos position identify and explain at least

think about what you have read and seen in the news on globalization. consider the fact that the clothing we wear the

  Approaches to job design that are the most important

Select two (2) out of the four (4) approaches to job design that are the most important for you to consider. Suggest two (2) challenges that you may encounter when designing a job using each of the selected approaches.

  Apply cash flow analysis and time value of money concepts

apply cash flow analysis and time value of money concepts and relationships. consider that you are nearing graduation

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