User Account

All Pages

How do compute what is the npv of the project

Assignment Help Financial Accounting
Reference no: EM132642721

Problem 1: A company wants to invest in a project that pays $10,000 after 1 year, $20,000 after 2 years, $50,000 after 5 years and would require an investment of $60,000 right now and $5000, 3 years from now. What is the NPV of this project and should the company accept it if the interest rate is 10%?

Select one

a. NPV is $10,422.47, so accept
b.. NPV is $25,000, accept
c. NPV is $2,909.33, so accept
d. NPV is $2,909.33, so reject
e. NPV is -$10422.47, so reject

Reference no: EM132642721

Questions Cloud

How AARNet is connected to the Internet in Australia : Show the composite signal that each receiver will receive and how each receiver can retrieve its own data using the corresponding spreading code
How much will have toward down payment : Amy's uncle died recently and left her some money in a trust, How much will she have toward down payment on home ownership?
Calculate the market value of outstanding preferred share : Calculate the market value of the outstanding preferred share given that the required rate of return is 9.3 percent. Estimate the value of outstanding preferred
What is the npv of project and should the company accept : An investment of $60,000 right now and $5000, 3 years from now. What is the NPV of this project and should the company accept it if the interest rate is 10%?
How do compute what is the npv of the project : A company wants to invest in a project that pays $10,000, Find What is the NPV of this project and should the company accept it if the interest rate is 10%?
Explain any two indian accounting standard followed : Explain any two Indian Accounting Standard followed by that company in detail. Each student is expected to take any Public Limited Company
How did the children differ in terms of behavioral : How did the children differ in terms of behavioral and social interaction and How did the children differ in terms of language skills? Did you modify your rate
Which bond usually will have a higher liquidity premium : Which bond usually will have a higher liquidity premium: one issued by a large company or one issued by a small company? Explain in detail.
What the net cash inflows from operating activity should be : What the net cash inflows from operating activities in 2017 should be? At the beginning of 2017, the company purchased additional assets at a cost of P5,000,000

Reviews

Write a Review

Financial Accounting Questions & Answers

  Transactions for income tax purposes

Mark and Lisa were divorced in 2014. In 2015, Mark has custody of their children, but Lisa provides nearly all of their support. Who is entitled to claim the children as dependents? How should Hernando treat these transactions for income tax purposes..

  Develop standard cost for the direct cost

Develop the standard cost for the direct cost components of a 10 gallon batch of rasberry sherbert. For each direct cost component, the standard cost should Identify the Standard Quantity

  Determine what the current account balance should equal

Determine what the current account balance should equal. For each separate case below, follow the three-step process for adjusting the Accumulated Depreciation

  How is the inventory described

Your SEC 10-K company should have accounts receivable and inventory, How is the inventory described? Who owes money to your SEC 10-K company?

  Journalize the entries in march that pertain to operation

Journalize the entries in March that pertain to the operation of the petty cash fund.

  Septembers direct material price variance is

Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2019, AVO estimated the following standard costs.

  Compare the original budget to the flexible budget

Compare the original budget to the flexible budget and calculate the volume variance. Compare the flexible budget to the actual budget and determine the price and quantity variances.

  What is payback period of a project with average annal cash

What is the payback period of a project with average annal cash outflows of $8,000 average annual cash inflows of $10,000 and an initial investement

  Discuss minimum of key considerations of venture capitalist

Venture Capital is an alternative for financing new and often high-risk venture. Briefly discuss minimum of key considerations of choosing a venture capitalist

  Find and calculate each of stock expected return and risk

Company name Volatility (Standard deviation), Calculate each of the stock's expected return and risk (beta) as compared to the market.

  Assuming alison uses fair-value accounting

On January 1, 2014, Alison, Inc., paid $82,400 for a 40 percent interest in Holister Corporation’s common stock. This investee had assets with a book value of $244,000 and liabilities of $113,000. Assuming Alison uses the equity method, what balance ..

  What was the effect on income from capitalizing interest

What was the effect on income from capitalizing interest and compute times interest earned for 2008 and 2007. Comment on the absolute amounts and the trend.

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