Forecast the cash flows generated by project

Assignment Help Project Management

Reference no: EM1336764

First, Forecast the cash flows generated by project X over its economic life. Second, determine the appropriate opportunity cost of capital(r).

This should reflect the both the time value of money and the risk involved in project X. Third, use this opportunity cost of capital to discount the project's future cash flows, the sum of the discount cash flows is called present value(PV), Forth, calculate net present value(NPV) by subtracting the $1million investment from PV.

Reference no: EM1336764

Questions Cloud

Determine the safety stock required to prevent stockouts : Clothes, Inc., has an average annual demand for red, medium polo shirts of 25,000 units. Determine the safety stock required to prevent stockouts assuming the maximum lead time is 20 days and the maximum daily demand is 125 units.

Make the categories and terms of the three basic demands : Make the categories and terms of the three basic demands for money and what the number of categories of the money supply are.

Description of attorney-client privilege : What is the concept of attorney-client privilege and what are the factors that void that privilege?

Strategic objectives : What do you consider Able Corporation's top two strategic objectives over the next year? Why these?

Forecast the cash flows generated by project : First, Forecast the cash flows generated by project X over its economic life. Second, determine the appropriate opportunity cost of capital(r).

Levered value of firm : Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $879,000. What is the levered value of the firm?

Assume a direct access file consists of sectors : assume a direct access file consists of sectors with 1024 byte capacity. Suppose also that records are 32 bytes long. On which logical sector do the following logical records lie? What is the relative record number in the sector?

What may cause the loss of one control file : Why must a business have its database in ARCHIVELOG mode?

Coke to ourconsumer what should we do if our goal : If it will cost us approximately $0.75/bottle to supply more Coke to our consumer what should we do if our goal is to maximize profit.

User Account

All Pages