Net present value of project

Assignment Help Finance Basics
Reference no: EM133060008

Hoosic has an investment project which will expand the size of its existing business. The project costs $275,000 and will generate an after tax cash flow of $34,905 per year forever. Hoosic intends on keeping its debt ratio constant. What is the net present value of this project?

Reference no: EM133060008

Questions Cloud

The executive branch-voting for texas governor : If you were voting for the Texas Governor - tell me at least three qualities you would look for in that person - and fully
What is the yield on 90-day risk-free securities : Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.009144, while in the 90-day forward market 1 Japanese yen = $0.009184. In Japan,
Find the value of a european call : The stock of IvIBIC is currently trading at $108 per share and has an annual volatility (i.e., standard deviation) of 23.5%. The risk-free interest rate is 2.5%
What will be the fra agreed rate : You know that in seven months' time your company is going to borrow $5 million for six months. You obtain the following quotes from an FRA dealer:
Net present value of project : Hoosic has an investment project which will expand the size of its existing business. The project costs $275,000 and will generate an after tax cash flow of $34
What is personal responsibility and social responsibility : What is "personal responsibility?" What is "social responsibility?" How does it relate to citizenship and civic responsibility;
Negative slope coefficient means : A Fama regression that generates negative slope coefficient means that when the interest rates in the USA is greater than Europe, then on average, what will hap
Investing in the financial markets : One of the advantages of using simulation is that students (or any apprentice of financial trading) can make mistakes and learn from them.
Educational roles of state and federal government : Compare and contrast the educational roles of state and federal government. What is the role of the U.S. Department of Education?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the beta coefficient of the stock

Later today, Sharon is going to sell one of the stocks in her portfolio for $40,000. After the sale, the portfolio's beta will be 1.3. What is the beta coefficient of the stock that Sharon plans to sell?

  Additionally to the lender to eliminate the loan

additionally to the lender to eliminate the loan? Fifthly, how much is the effective annual rate?

  Determining the lower the monthly payments

How much longer (in months) will it take you to repay this loan than you had originally planned?

  Dual effects on balance sheet equation cement plus a firm

dual effects on balance sheet equation cement plus a firm specializing in building materials engaged in the following

  Design a swap that will net a bank

Company A needs $30 million at a floating-rate to fund a 5-year project while Company B desires $30 million at a fixed rate to complete its 5-year construction plans.

  Laws of international business practices

What kind of impact can countries with poor track records of adhering to the laws of international business proactices have on global economy? Explain.

  What should a potential investor understand about the ratio

So how would we interpret the results of the ROE for ScottsMiracle -Gro from 2006-2010. What does it mean in terms of financial performance and what should a potential investor understand about the ratio?

  Confidence interval for the mean of all such costs

Construct the 99% confidence interval for the mean of all such costs

  Speculate why this occurs provide support for your response

An unanticipated change in the growth rate of aggregate demand affects production and employment before they affect prices. Speculate why this occurs. Provide support for your response.

  What would the estimated property value be

What would the estimated property value and land value be under the above assumptions? Suppose you are also considering using the site as a retail building.

  Estimate owego storage required return on equity investment

Estimate Owego storage's required return on its equity investment in the new warehouse.

  Complete a research paper regarding a human resources

HR development is critical on the grounds that associations perceive that any esteem added to a representative is esteem added to the association.

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