Indifferent between accepting the project and rejecting

Assignment Help Financial Management

Reference no: EM13941488

A project that provides annual cash flows of $16,900 for eight years costs $75,000 today

What is the NPV for the project if the required return is 7 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

What is the NPV for the project if the required return is 19 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM13941488

Questions Cloud

Academic disciplines of human resource management : The disciplines of HR and IR are forever linked'. In other words, while the academic disciplines of Human Resource Management and Industrial Relations are specializations in their own right in reality they cannot be separated in the 'real world' o..

Identify the criteria for evaluating the information found : Explain the rationale used for selecting the sources to analyze. Explain the procedures to be used for analyzing the sources.

Conduct a strategic analysis of british telecom : Using public sources, conduct a strategic analysis of British Telecom (BT) and its position in the telecommunications industry in the United Kingdom. To what extent is BT in a good position to obtain a sustainable competitive advantage?

What is the projects average accounting return : You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.9 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected..

Indifferent between accepting the project and rejecting : A project that provides annual cash flows of $16,900 for eight years costs $75,000 today. What is the NPV for the project if the required return is 7 percent? At what discount rate would you be indifferent between accepting the project and rejecting ..

What is the projected net income : A proposed new investment has projected sales of $800,000. Variable costs are 65 percent of sales, and fixed costs are $169,000; depreciation is $70,000. Prepare a pro forma income statement assuming a tax rate of 34 percent. What is the projected ne..

Develop feasible marketing strategies : Develop feasible marketing strategies and communicate reasons that justifies their selection.

Project has an initial fixed asset investment : A five-year project has an initial fixed asset investment of $315,000, an initial NWC investment of $31,000, and an annual OCF of −$30,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.

What is the discounted payback period if discount rate : An investment project costs $10,000 and has annual cash flows of $2,950 for six years. What is the discounted payback period if the discount rate is zero percent? Discounted payback period years What is the discounted payback period if the discount r..

User Account

All Pages