Npv on project of riggs corp

Reference no: EM13741904

Problem:

Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $286,333 over the next three years.

If the discount rate is 17.5 percent, what is the NPV on this project?

Reference no: EM13741904

Questions Cloud

Genentech owns a patent on tissue plasminogen activator : Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..

Documenting the testing of c program : Writing a test plan and writing a C program with reasonable comments and sensible variable names - Test and documenting the testing of your c program

How to find two variables by cramer''s rule : What is Cramer's Rule and how to Find Two Variables by Cramer's Rule (need the answer Step by Step with Solved Examples

What toll needs to be charged to break even : A 100 KM toll way costs $5M per km to build. The bonds are for 20 years and pay 10 percent per year [(A/P, 10%,20) = 0.1175]. If annual maintenance costs are $1000 per km, and 20000 vehicles use the toll away every day, what toll needs to be charged ..

Npv on project of riggs corp : Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $286,333 over the next three years.

Report named tax planning considerations for employees : Write a report named Tax Planning Considerations for Employees. The report will involve tax planning issues related to the organization’s employees. USco designs and manufactures specialized equipment used in various manufacturing applications.

Doctors and nurses the clinic is presently using optimal : Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Is the mix of doctors and nurses the clinic is presently using optimal? Explain.

Capital management-abc community hospital not-for-profit : Established in 1987, ABC Community Hospital not-for-profit is an acute care hospital locatedin an east coast Metropolitan area. With a staff of nearly 200 physicians and specialists, 800 employees and 100 volunteers, they offer a full range of hea..

Determined that if clinic hires two more practical nurses : The consultants of Allcare Family Clinic (AFC) have determined that if the clinic hires two more practical nurses, without any other changes in its operation, it can increase the number of patients it treats during a week from 200 to 220. The weekly ..

User Account

All Pages