Solution-Npv-pi and irr calculations

Npv-pi and irr calculations

Assignment Help Finance Basics

Reference no: EM131077607

(NPV, PI, and IRR calculations) Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,960,000, and the project would generate cash flows of $380,000 per year for six years. The appropriate discount rate is 3.0 percent.

Calculate the net present value.
Calculate the profitability index.
Calculate the internal rate of return.
Should this project be accepted? Why or why not?

Reference no: EM131077607

Questions Cloud

How much does he need to invest : Dan would like to save $2,000,000 by the time he retires in 40 years and believes he can earn an annual return of 8%. How much does he need to invest today to achieve his goal?

Find the number of rabbits present in the island initially : Find the number of rabbits present in the island initially (at t = 0).

Common stock valuation : The common stock of NCP paid $1.21 in dividends last year. Dividends are expected to grow at an annual rate of 5.40 percent for an indefinite number of years.

Analyze the dual relationships presented in your scenario : A psychologist is seeing a client in therapy. The client tells him she can no longer pay for sessions. He has been struggling to deal with the paperwork imposed by managed care and billing. He suggests that the client can work for him 2 days per w..

Npv-pi and irr calculations : Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,960,000, and the project would generate cash flows of $380,000 per yea..

Define negilence and identify four components of negilence : Define negilence. Identify the four components of negilence and how it applies in the case of good Samaritan home.

Determining the imports and exports worth : Suppose that Lebanon has placed tariffs on its imports and exports. The import tariff is 13%, and the export tariff is 8%. If Lebanon has a balance of trade of (equivalent US dollars) $5,510,000 and received tariff revenue of $4,019,200, what are ..

What are some key aspects and features of the culture : What are some key aspects and features of this culture? What language do they speak (and is it indigenous or not)? What are the basic demographics? What are their religious beliefs and practices?

How do artifacts and confounds relate to internal validity : Explain what is meant by the terms ‘artifact', ‘confound', and ‘noise'. How do artifacts and confounds relate to internal validity and/or external validity?

User Account

All Pages

Npv-pi and irr calculations

Reference no: EM131077607

Reference no: EM131077607

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT