Determine the expected NPV of this project

Assignment Help Accounting Basics
Reference no: EM133072920

Question - A project has an initial outflow of $400 000.However, the project will generate an instantaneous inflow of $150 000. The project will generate a net inflow of $2 000 000 next year, an outflow of -$100 000 the year after. In the following year, a terminal value of $50 000 is expected to be realised. Given a cost of capital of 15%, determine the expected NPV of this project?

Reference no: EM133072920

Questions Cloud

Briefly describe the three types of project risk : Briefly describe the three types, of project risk normally considered in capital budgeting?
How much would npv increase if the firm takes immediate : Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $13.2 million. The equipment will be depreciated
What is the gain or loss to be presented : Under the fair value model, what is the gain or loss to be presented in the income statement for the year ended December 31, 2023
Compute operating cycle and cash cycle : Compute operating cycle and cash cycle. Is the cash cycle efficient for X corperation?
Determine the expected NPV of this project : In the following year, a terminal value of $50 000 is expected to be realised. Given a cost of capital of 15%, determine the expected NPV of this project
What is the annualized hpr of the project : A firm considers undertaking an investment project with the following cash flows: initial machine purchase: $20,000; a cash refund on part of the machine of $20
What will be the closing cash balance at June : Sundry other cash expenses of £1,000 will be paid each month. What will be the closing cash balance at 30th June 2022
Unique high-performance products : Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide
Estimate elasticity of the interest rate changes : Please estimate elasticity if the interest rate changes to 6%? Please estimate elasticity if the interest rate changes to 4%?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the cost of the unfinished jobs at March

Jobs finished during March are summarized as follows: Job 320 $72,400 and Job 326 79,200. Determine the cost of the unfinished jobs at March

  Find what would be the company net operating income

Riven Corporation has a single product whose selling price is $18. What would be the company's net operating income

  Determine the direct materials cost per equivalent unit

The ending in-process inventory was 2,900 units, which were 3/5 complete as to conversion cost. Determine the Direct materials cost per equivalent unit

  Tourism and crime appear to be inextricably linked

Tourism and crime appear to be inextricably linked. Why is there such a connection and what policy options are available for combatting crime and/or terrorism

  What is the journal entry to record the purchase of machine

Agricultural machine on account at P120, 000, with credit terms of 3710, n730. What is the journal entry to record the purchase of machine on account?

  Rainbow cruises operates a week-long cruise tour through

rainbow cruises operates a week-long cruise tour through the hawaiian islands. passengers currently pay 1800 for a

  Prepare the appropriate adjusting entries for July

Prepare the appropriate adjusting entries for July 31, 2017 based on the following information available at the end of July

  What is the default risk premium on the corporate bond

A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk premium on corporate bond

  Record underapplied factory overhead to cost of goods sold

Record the journal entry to close over- or underapplied factory overhead to Cost of Goods Sold for each of the independent cases below.

  What accounting asumption or principle governs the amount

$1000 and can sell them immediately for $1500. What accounting asumption or principle governs the amount at which to record the goods you purchased?

  What is the value at maturity

What is the value at maturity (future value) of a $2,000 (present value) investment over 120 days at 5 % p.a.? Assume 365 days in a full year

  Wads county maintains an investment pool in which it

wads county maintains an investment pool in which it invests funds both for wads county and for all legally separate

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