Net present value of a proposed capital budgeting

Assignment Help Finance Basics
Reference no: EM13839106

Let's also make sure that you are comfortable calculating the net present value of a proposed capital budgeting project when the cash inflows are uneven.Given the following information, calculate the NPV: 


Initial investment is $50,000; 
inflows for the next four years are $12,000, $4,000, $12,000, $13,000 respectively. 
The required rate of return is 8%.

 

 

Reference no: EM13839106

Questions Cloud

Article about flow meter current trend : Article about flow meter current trend that I must do a summary of in 1 to 2 pages
What is the companys cost of equity capital : The Up and Comig Corporation's common stock has a beta of 1.05. If the risk-free rate is 5.3 percent and the expected return on the market is 12 percent, what is the company's cost of equity capital?
Explain how the spot and forward rates of the pound : Assume the following information: • British pound spot rate = $1.71 • British pound one-year forward rate = $1.69 • British one-year interest rate = 8% • U.S. one-year interest rate = 5% a. Explain how U.S. investors could use covered interest arbitr..
Paper about economic integration opportunity : We all agreed to use Scenario: Choose an existing U.S. based business the does not currently have international operations and expand it globally. These are the Topics that needs to be covered as Listed below: Economies of Scale, Tariffs/Subsidies/..
Net present value of a proposed capital budgeting : Let's also make sure that you are comfortable calculating the net present value of a proposed capital budgeting project when the cash inflows are uneven.Given the following information, calculate the NPV:
Describe how the storage molecule is broken down : Explain how energy is stored as fat, including identification of the storage molecule and tissue. Describe how the storage molecule is broken down and used to produce ATP.
Identify the demand conditions for the industry product : Factor Endowments (Heading): To clearly identify the Basic factors and advanced factors of your industry and country chosen. Demand Conditions (Heading): To clearly identify the demand conditions for the industry's product in your country.
Baryla inc manufactures high quality decorator lamps : Baryla Inc manufactures high quality decorator lamps in a plant located in Eastern Tennessee. Last year the firm had sales of $100 million and a gross profit margin of 40%. How much inventory can Baryla hold and still maintain an inventory turnover r..
Three-station production line with a single product : Consider the following three-station production line with a single product that must visit stations 1, 2, and 3 in sequence. its total production line time is 3 hrs 47 mins, bottle neck rate is 200, Wo is 9.333.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determination of share value

Mill Due Corporation is expected to pay a dividend of $5.00 per year on its common stock forever into the future. It has no growth prospects whatsoever.

  What number of units should the firm sell to achieve

One Small Grill Company is a start up firm with the following profile: Unit selling price = $ 230; Variable cost per unit = $ 130; Fixed costs = $ 36,000; and Tax rate = 40%. What number of units should the firm sell to achieve an after tax target..

  Discuss the investment planning process what role does

1. discuss the investment planning process.2. what role does asset allocation play in investment

  What is the value of a 1000 par value bond with annual

1. bond.what is the value of a 1000 par value bond with annual payments of ana. 11 coupon with a maturity of 20 years

  Turnover rate-recruitment

Keeping good employees is a challenge that all organizations share and that becomes even more difficult as labor markets change. After viewing the video, "John Sculley on How Steve Jobs Got Fired From Apple," discuss why employees leave organizati..

  Some companiesrsquo debt-equity targets are expressed not

some companiesrsquo debt-equity targets are expressed not as a debt ratio but as a target debt rating on a firmrsquos

  Smith company presents the given data for 2006 the number

smith company presents the following data for 2006.inventories beginning of year 310150 inventories end of year 340469

  Computation of bond''s nominal yield to maturity

Computation of bond's nominal yield to maturity and their nominal yield to call and what return should investors expect to earn on this bond

  Holdup bank has an issue of preferred stock with a 555

holdup bank has an issue of preferred stock with a 5.55 stated dividend that just sold for 92 per share. what is the

  All income in a tfsa accumulates tax-free

Michael Piemontese is 50 years old and would like to retire at age 65. He currently earns $55,000 per annum. He pays tax at an average rate of 18% of his gross income, and a marginal rate of 32%. He has $4,000 in deductions from his take hom..

  What is the expected return and standard deviation

What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds?

  When does insider trading occurnbsp what government agency

1.what form of partnership allows some of the investors to limit their liability? explain by giving examples. 2.when

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