User Account

All Pages

Problem regarding the initial capital investment

Assignment Help Finance Basics
Reference no: EM131082531

Question

Mutant & co. is currently considering investment in new project, which requires initial capital investment of $ 50, 00,000. Life period of this project is 5 years. Mutant & co. is expecting following cash inflow from the project.

Year

Cash inflow

1

$ 7,00,000

2

$ 8,00,000

3

$ 14,00,000

4

$ 16,00,000

5

$ 18,00,000

If required rate of return of Mutant & co. is 15% find out NPV of this project.

Reference no: EM131082531

Questions Cloud

Increased costs for businesses appreciably : Has it reduced fraud or increased fairness? Does it help or hurt U.S. capital markets? Has it increased costs for businesses appreciably? Overall, has SOX been a plus or a minus?
Discuss the role of the irb and the belmont report : Discuss the role of the IRB and the Belmont Report in ensuring ethical and safe treatment of patients during medical research. ine leadership. Next, select and evaluate one of the subprinciples discussed in Chapter 15 of the Locke text.
Calculating units-of-activity depletion : The mine has no salvage value, so the depletable cost of $50,000,000 is divided by 1,000,000 ounces to calculate a per-unit depletion cost of $50 per ounce. If the company extracts and then sells 100,000 ounces of gold during the year, depletion e..
Question regarding the control cash : Cash is a liquid, portable, and desirable asset. Therefore, a company must have adequate controls to prevent theft or other misuses of cash. What control activities can a company use to control cash?
Problem regarding the initial capital investment : Mutant & co. is currently considering investment in new project, which requires initial capital investment of $ 50, 00,000. Life period of this project is 5 years. Mutant & co. is expecting following cash inflow from the project.
Explore a wikibook on professional writing : For general information on formatting and organizing a business email message of this type, you might explore a wikibook on professional writing.
Find the continuation lines for a value : Next break the revised set of key value strings into the keys and values. Again use regular expressions to do this. Then create the names vector from these keys and values.
Amount of the annual interest tax shield : What is the amount of the annual interest tax shield given a tax rate of 35 percent?
Write code to handle the attachments in the message : Write code to handle the attachments in the message

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the times interest earned ratio

The firm currently has 25,000 shares of common stock outstanding, and the previous year's dividends per share were $1.25. Assuming a 34 percent income tax rate, what was the times interest earned ratio?

  Compute the current price of this stock

After Careful analysis ,you have determined that a firm'a dividend should grow at 8%on average in the foreseeable future .Its last dividend was $4. Compute the current price of this stock ,assuming the required return is 18%.

  The evanec companys common stock now sells for 3674 new

the evanec companys common stock now sells for 36.74. new stock can be sold to net 32.26 per share. what is evanecs

  How will its overall transaction exposure be affected

Assuming Blades enters into the agreement with Jogs, Ltd., how will its overall transaction exposure be affected?

  Caluing business opportunities

Suppose that the role of finance section at Strident Marks. The finance section has a couple of new hires, and the CFO has asked that you spend a short amount of time with them,

  Fair price per share

What is a fair price per share and how many additional shares must Benjamin sell to the angel? Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant.

  The estimated project beta is 20 the market return is 13

beta and npv analysis. a project has the following forecasted cash flows in thousands of dollarsyear 0year 1year 2year

  What will increase the current value of a stock according

An increase in what will increase the current value of a stock according to the dividend growth model? and why?

  Discuss the various cost of capital techniques used in the

discuss the various cost of capital techniques used in the high technology field microsoft google et al and why they

  What is the beta of stock x

What is the beta of Stock X. Round your answer to two decimal places. What is the beta of Stock Y. Round your answer to two decimal places.

  When creating a budget for an organization it is important

when creating a budget for an organization it is important to consider several outputs. these outputs depend on the

  What was your total real rate of return on this investment

If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd