Develop an intial estimate of npv

Assignment Help Finance Basics
Reference no: EM131411688

PROJECT SCENARIO: Suppose you are analyzing a project with the following pro-forma parameters:

Initial Investment (P&E)

Initial Working Capital

Working Capital Recovery

$6.2 million

$785,000

100%

OCF 1

OCF 2 - 4

OCF 5

$1.1 million

$2.7 million

$750,000

Terminal Salvage Value

Flotation Cost %

Depreciation

$0

6%

S/L to Zero over 5 Years

Marginal Tax Rate

Required Return

Project Life

40%

12%

5

TASK ONE: Use the above pro-forma data to develop an intial estimate of npv. Comment in any way you feel is appropriate based upon your findings.

Reference no: EM131411688

Questions Cloud

Which of the following statements is true of the warn act : Which of the following statements is true of the WARN Act? Which of the following is true of the assumption of risks during delivery of goods
Write the logic equations and sketch the logic diagram : For the following circuit with the given state assignment, find a clocked JK flip-flop implementation. Write the logic equations and sketch the logic diagram.
Could simulation be used to find probabilities : Does using simulation to estimate probabilities rely on the relative frequency or the personal probability interpretation of probability? Explain. Whichever one you chose, could simulation be used to find probabilities for the other interpretation..
Constrain the accomplishment of a project objective : Explain the four factors that constrain the accomplishment of a project objective and what steps can be taken to mitigate the constraint also discuss the steps involved in the project management process and why they are necessary.
Develop an intial estimate of npv : TASK ONE: Use the above pro-forma data to develop an intial estimate of npv. Comment in any way you feel is appropriate based upon your findings.
Design a 3-bit counter/pseudorandom number generator : Otherwise, it should operate as a pseudorandom number generator according to the following function table.
Why given would often work to convince people : I see that you are thinking of two men, one with dark hair and the other one with slightly lighter hair or complexion. Do you know who I mean?
How a federal policy affects your current : How a federal policy affects your current or desired workplace. What role Congress has played in establishing workplace conditions in your current or desired job
What is the probability that she will be picked on friday : If Jan was not one of the four students selected earlier in the week, what is the probability that she will be picked on Friday? Explain how you found your answer.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the main mission of the bolts in any joint

What is the main mission of the bolts in any joint? What factor largely determines the behavior and life of a tensile joint? Why are bolted joints often called live joints as compared to welded, riveted, or bonded joints?

  What must the six-month forward rate be to prevent arbitrage

What must the six-month forward rate be to prevent arbitrage?

  As a starting point what is the price of the combined test

allied laboratories is combining some of its most common tests into one-price packages one such package will contain

  Mn equation-sales increase

Broussard Skateboard's sales are expected to increase by 15% from S8 million in 2013 to S9.2 million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  You have 350 per month to spend on a car payment if your

you have 350 per month to spend on a car payment. if your credit union charged 7.5 interest on a used car how much

  What will be the estimation of his reserve funds toward

krishna spares Rs 24000 a year for a long time, and Rs.30,000 a year for a long time from that point. On the off chance that the rate of hobby is 9 percent intensified yearly, what will be the estimation of his reserve funds toward the end of 20 year..

  Statements of kaizen on costing

Which of the following statements about Kaizen costing is false?

  Briefly summarize the revenue ruling holdings

What are the relevant IRC sections that the revenue ruling interprets? What issue(s) does the revenue ruling address? Briefly summarize the revenue ruling's holdings (answers to the issues

  What will be your monthly payment

Suppose Capital One is advertising a 60-month, 5.75% APR mortorcycle loan. If you need to borrow $8200 to purchase your dream harley davidson, what will be your monthly payment?

  An investor is thinking about buying some shares of

an investor is thinking about buying some shares of computer engines inc. at 60 a share. she expects the price of the

  What size depostis must they make

They make deposits at the end of each 3-month period for 10 years and if interest is paid at 12% coumpunded quarterly what size depostis must they make?

  Problem regarding the tootsie roll industry

Focus on the Balance Sheet, which Tootsie Roll Industries Inc. titles Consolidated Statements of Financial Position, and the notes following the financial statements. Answer the following questions in a clear and concise, professional business rep..

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