Install will provide annual cash flows

Assignment Help Financial Management

Reference no: EM13917968

A project that costs $3,700 to install will provide annual cash flows of $870 for each of the next 7 years.

Calculate the NPV if the opportunity cost of capital is 11%?

Is this project worth pursuing?

What is the project's internal rate of return IRR?

Reference no: EM13917968

Questions Cloud

What rate should firm use to discount projects cash flows : Titan Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6 percent preferred stock outstanding, and 225,000 8.7 percent semiannual bonds outstanding, par value $1,000 each. what rate should the firm use to disco..

How would results of this survey be used in the workplace : My job is to Select a variable from the study and one from the workplace that might prove to provide a correlation relationship. Explain why I would choose these two? and How would the results of this survey be used in the workplace?

The electronic exchange of financial information : Although XBRL facilitates the electronic exchange of financial information, some external users do not think it goes far enough. They would like access to the entire general ledger, not just to XBRL-tagged financial reports that summarize general ..

Effects of categorization and social influences : Write a paper of 1,000-1,250 words in which you discuss the effects of categorization and social influences on decision making. Include the following:

Install will provide annual cash flows : A project that costs $3,700 to install will provide annual cash flows of $870 for each of the next 7 years. Calculate the NPV if the opportunity cost of capital is 11%? What is the project's internal rate of return IRR?

Current national unemployment rate for teenagers : a. What is the current national unemployment rate for the United States? b. What is the current national unemployment rate for teenagers? c. What is the current unemployment rate for adult women?

Evaluate the strategy that led to the merger or acquisition : For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise ..

What would be positive about proposed disneyland theme park : What would be positive for them about the proposed Disneyland Theme Park in Hong Kong? What would be negative for them about the proposed Disneyland Theme Park in Hong Kong?

Calculate the terminal wealth and annualized yield : Face value =$1,000, coupon rate = .06, maturity = 11 yrs, market yield = 0.074, duration = 8.0 yrs. Suppose that immediately after you purchase the bond, all interest rates decline from .074 to .064 and remain at .064 thereafter (remember that bond y..

User Account

All Pages