Find out effect on the npv of the project

Assignment Help Finance Basics
Reference no: EM132700959

A project requires an increase in net working capital of $195,000 at time 0 that will be recovered at the end of its 10 year life. If opportunity cost of capital is 1%, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places.

Reference no: EM132700959

Questions Cloud

What is the sharpe ratio of the best feasible cal : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund
Making liquidity management decisions : Determine the best way that the discipline of the marketplace can be used as a guide for making liquidity management decisions.
Find standard deviation for minimum-variance portfolio : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund
Find out net present value of investment : A company will sell Thingamabobs to consumers at a price of $92 per unit. The variable cost to produce Thingamabobs is $34 per unit. The company expects
Find out effect on the npv of the project : If opportunity cost of capital is 1%, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places.
Determining the cash flow of daily enterprises : Daily Enterprises is purchasing a $15,000,000 machine. The machine will depreciated using straight-line depreciation over its 5 year life and will have no salva
Determining the financial decision and benefits : Share an example of a situation when you used TVM calculations to support a financial decision either in your professional or personal life. (If necessary
What do you recommend fixing right away : For this Linux system, what do you recommend fixing right away? Are there dangers if the vulnerabilities and associated threats are not fixed?
Determining the operating cash flows : Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $25,000 and will be depreciated straight-line over 4

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