Estimating the net present value

Assignment Help Business Management
Reference no: EM132656420

Your company is considering undertaking a project to expand an existing product line. The required rate of return on the project is 8% and the maximum allowable payback period is 3 years. The table below shows

Time 0 1 2 3 4 5 6
Cash Flow $(10,000) $2,400 $4,800 $3,200 $3,200 $2,800 $2,400

Use the project to find the following method. Should the project be accepted or rejected? Justify your answer based on the method used to evaluate the project's cash flows.

1.  Net Present Value

Reference no: EM132656420

Questions Cloud

Prepare fully classified statement of profit for djuric ltd : Prepare fully classified statement of profit or loss for Djuric Ltd. Presented here is information related to Djuric Ltd for the month of January 2016.
What is the current price of the two bonds : You are looking to invest some money for five years. Your attention has been drawn to two bonds, A and B, both issued by XYZ, Inc. and both having the same yiel
What are the four main barriers to strategy execution : -What are the four main barriers to strategy execution? How does a Balanced scorecard help overcome each of these barriers?
Calculate the passenger sales per year non-financial ratios : Calculate the Passenger sales per year non-financial ratios and comment on each ratio. Unused flights as % of total number of flights
Estimating the net present value : Your company is considering undertaking a project to expand an existing product line. The required rate of return on the project is 8% and the maximum allowable
What rights a convicted felon or inmate should possess : What rights, if any, do you believe a convicted felon or inmate should possess? Should the individual possess any rights or have these rights been forfeited?
What is the current price of the company shares : If your required rate of return on such shares is 18 percent, what is the current price of the company's shares?
Find the amount of ?nancing needed by sabaq corporation : Find the amount of ?nancing needed by Sabaq Corporation. Sabaq Corporation wants to determine the additional funds needed for its forecasted sales
What is the total australian dollar cash flow for year-two : Perth International anticipates a 5.88 per cent increase in the year-one income of its subsidiaries in year-two. It has information that the current 5.74 per ce

Reviews

Write a Review

Business Management Questions & Answers

  Explain how can nonverbal communication help

Explain how can nonverbal communication help you run a meeting? How can it help you call a meeting to order,

  Calculate the equilibrium concentration of hydroxide ions

Calculate the equilibrium concentration of hydroxide ions, [OH-]E, when 100.0 mL of a 0.100 M ammonia solution (NH3 (aq), Kb = 1.8 × 10-5)

  How the problem would be addressed

What kind of framework can be used for the approach and include where it would start, who would be involved and how the problem would be addressed.

  Receive on this stock if it is purchased today

Green Company's common stock is currently selling for $99.57 per share. Last year, the company paid dividends of $4.61 per share

  Describe two products that are commonly available today

Describe two products or services that are commonly available today (for example: a fast food burger and a Dental cleaning).

  Optimal order quantity for boats

Barneycle's Boat Shop sells 4,000 of its glow-in-the-dark boats each year and has fixed order costs of $220.9 per order. Carrying cost per boat is $200 per year. What is the optimal order quantity for these boats?

  What lessened its effectiveness

What lessened its effectiveness? To what extent did it achieve the goal of conveying unpleasant news, while maintaining the recipient's goodwill?

  A new human resources manager

As a new Human Resources Manager, you are required to begin your position with the hiring of a new Customer Service Representative (you work for a telecommunications company). This process is the beginning of what our textbook refers to as the ..

  Describe how the product or service will meet consumer need

Describe how the product or service will meet consumer need? Identify at least two technology policies that will apply to the product or service initiative.

  Accommodating strategy in order to reach an agreement

A negotiator with a weak BATNA may be forced to adopt a more accommodating strategy in order to reach an agreement during the negotiation.

  Compute the actual internal rate of return

Wha t is St. James's real MARR?- What is the real internal rate of return? (This is most easily done with a spreadsheet.)- Compute the actual internal rate of return using Equation (9.10).

  Draw the normal form of the game

1. Draw the normal form of the game where either firm can choose to Cooperate or Defect.

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