User Account

All Pages

Evaluate the project using us cash flows

Assignment Help Finance Basics
Reference no: EM132481135

You want to invest in a project in Canada that has an initial cost of C$812,000 and is expected to produce cash inflows of C$340,000 a year for three years. The project will be worthless after the three years. The risk-free rate in Canada is 4 percent while it is only 3 percent in the U.S. The applicable interest rate for the project in Canada is 12 percent. Assume the current spot rate is C$1 = $.7874. What is the WACC you should use if you want to evaluate the project using US cash flows? Please show your work.

Reference no: EM132481135

Questions Cloud

What would the djia level be at the end of the day : Suppose on this day the prices for 29 of the stocks remained unchanged and one stock increased $5.00. What would the DJIA level be at the end of the day?
What is the new divisor for the price-weighted index : If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?
Determine what chart of account is affected : Based upon recording Balance of Payment (BOP) transactions. Determine whether or not the following is a debit, credit or no entry to the U.S. Balance.
Means for the poor and working class : What was created as a means for the poor and working class and extends to a much deeper issue, discrimination?
Evaluate the project using us cash flows : What is the WACC you should use if you want to evaluate the project using US cash flows? Please show your work.
Describe core instructional goals for the curriculum : Describe at least four (4) core instructional goals for the curriculum. Review the various approaches to be used for the planned curriculum as well as potential
What are 5- and 10-year goals : What are your 5- and 10-year goals that will get you closer to achieving your goal of home ownership?
What is net income-sheryl shipping : Sheryl's Shipping had sales last year of $20,000. The cost of goods sold was $8,500, general and administrative expenses were $3,000, interest expenses
Write a speech on the early childhood education issue : Write and video tape a two-minute speech advocating for your position on the early childhood education issue. Description of the issue and your position.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd