Discount rate be before you would reject the project

Assignment Help Financial Management

Reference no: EM131830150

A project that costs $4,600 to install will provide annual cash flows of $6 for each of the next 6 years.

a. What is NPV if the discount rate is 12%?

b. How high can the discount rate be before you would reject the project?

Reference no: EM131830150

Questions Cloud

How has technology had an impact on analyzing waiting line : What are the general tradeoffs that are involved in waiting line decisions and with Blue Meadows Restaurant in particular?

Discuss the business environment at xerox : Discuss the business environment at Xerox and the factors that may have motivated fraudulent activity and evaluate the alleged accounting errors

Hidden inside the package : The coupon collector's problem. Each time one buys a bag of cheese doodles one obtains as a bonus a picture (hidden inside the package) of a soccer player

Distinguish between syntax and semantics : Distinguish between syntax and semantics. Distinguish between a program that the CPU can execute directly and a program that must be translated.

Discount rate be before you would reject the project : What is NPV if the discount rate is 12%? How high can the discount rate be before you would reject the project?

Design crc cards for an inventory system for car dealership : Design the CRC cards for an inventory system for a car dealership, using brainstorming, filtering, and scenarios.

Evaluate the present value of the introduction of new chip : What is the proper cash flow to use to evaluate the present value of the introduction of the new chip?

How can objects relate to one another : How can objects relate to one another? Discuss the differences between a top-down design and an object oriented design.

Continuous singular distribution : Please check that this is the case (although this seems pretty clear since the constructions is the same as that of the Cantor distribution).

User Account

All Pages