Explain decision making on the basis of the net present

Assignment Help Finance Basics
Reference no: EM1313532

Explain decision making on the basis of the net present value criterion

Calculate the net present value and profitability index of a project with a net investment of $20,000 and expected net cash flows of $3,000 a year for ten years if the project's required return is 12% Is the project acceptable?

Reference no: EM1313532

Questions Cloud

Find time constant if the balls amplitude : Find time constant if the ball's amplitude has decreased to 2.20 cm after 51.0 oscillations? Explain your answer.
Some more restrictions on the activities of multinational : Illustrate what are some more common restrictions on the activities of multinational corporations in host countries
Determining value of the test statistic : Determine the calculated value of the test statistic? What distribution does test statistic have when null hypothesis is true?
Onyx corporation design also manufactures a broad range : An Onyx Corporation design also manufactures a broad range of fluid handling also industrial products.
Explain decision making on the basis of the net present : Explain decision making on the basis of the net present value criterion and profitability index of a project with a net investment of $20,000
Computation for spell of unemployment : How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
What is the magnitude of the total acceleration a : A 0.449 kg ice puck, moving east with a speed of 2.91 m/s, has the head-on collision with a 0.846 kg puck initially at rest. Assume a perfectly elastic collision, what will be the speed and direction of each object after the collision.
Early classical economists view the relation : Explain how did the early classical economists view the relation between productions also consumption.
Finding width of confidence interval around population mean : For this same sample of n = 45, find out the width of confidence interval around population mean?  Illustrate all work.

Reviews

Write a Review

Finance Basics Questions & Answers

  Objective type question on currency exchange rates

Objective type question on currency exchange rates and foreign subsidiaries and When an MNC cannot produce an actual product in a foreign subsidiary due to political restrictions

  Discount rate for these computations

What do you believe is the suitable rate other than 8.00% to utilize as the discount rate for these computations.

  Computaion of yield to maturity on bond

Computaion of yield to maturity on bond and Calculate the annual return if you sell the bond at that time

  Describe the each project''s payback period

Describe the each project's payback period and Describe the each project's net present value

  Explain capital budgeting involves calculation of npv

Explain Capital budgeting involves calculation of IRR, NPV, Payback period and If the required return is greater than the coupon rate

  What in accounting treatment on prior period items

What in Accounting Treatment on Prior Period Items and explain where in each of the following items should appear in the financial statements of a corporation

  Calculating multiple cash flows for a year

Calculating multiple cash flows for a year and determine the amount of each of the annual annuity payment

  Compounded semi-annually for first four years

invested for total 6 years at 6% compounded semi-annually for first four years followed by 12%compounded quarterly for final 2 years.

  Determine the npv at time period zero of the cash flows

Recall that this step determines the amount that could be deposited today, to satisfy the education funding need

  What are the implied interest rates

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

  Computing npv of investment if marginal tax rate is given

Marginal tax rate is 35%, and suitable discount rate is 9%. Compute the NPV of this investment. Must this project be accepted or rejected?

  Compute multiple cash flows for a year

Compute multiple cash flows for a year and the amount of the annuity shown below is the amount of each individual cash flow

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