During years 2 through 4 the project will generate cash

Assignment Help Finance Basics
Reference no: EM13574864

A proposed project requires an initial cash outlay of $849,000 for equipment and an additional cash outlay of $48,500 in year 1 to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 13 percent? Round your answer to the nearest whole dollar.

Reference no: EM13574864

Questions Cloud

Division y of the same company would like to use the part : division x makes a part that it sells to customers outside of the company. data concerning this part appear
Landon corporation was organized on january 2 2008 with the : landon corporation was organized on january 2 2008 with the investment of 100000 by each of its two stockholders. net
Cajun corporation manufactures a labor-intensive productthe : cajun corporation manufactures a labor-intensive product.the cost standards developed by cajun appear below.
Bonniwell corporation has two divisions the delta division : bonniwell corporation has two divisions the delta division and the alpha division. the delta division has sales of
During years 2 through 4 the project will generate cash : a proposed project requires an initial cash outlay of 849000 for equipment and an additional cash outlay of 48500 in
Consider a project to produce solar water heaters it : consider a project to produce solar water heaters. it requires a 10 million investment and offers a level after-tax
A camera manufacturecurrently purchases lenses from an : problem 1division a offers its product to outside markets for 60. it incurs variable costs of 22 per unit and fixed
Bonniwell corporation has two divisions the delta division : bonniwell corporation has two divisions the delta division and the alpha division. the delta division has sales of
Matrix company has a maintenance department that maintains : matrix company has a maintenance department that maintains the machines in departments a and b. next year department a

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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