Project has an initial cost

Assignment Help Financial Management

Reference no: EM131347333

A project has an initial cost of $37,750, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 10%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

Reference no: EM131347333

Questions Cloud

Why does the aggregate demand curve slope down : Why does the aggregate demand curve slope down? Give real-world examples of the three effects that explain the slope of the curve.

What is after-tax cost of capital for this debt financing : Great Seneca Inc. sells $100 million worth of 28-year to maturity 12.46% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 for each $1,000 bond. The firm's marginal tax rate is 30%. What is the after-tax cost of capital ..

What do sociological theories tell us about deviance : The Hardest Rule of Critical Thinking Is... If you had to pick one rule of critical thinking that you think is the most challenging, what would it be?Theoretically Speaking. What do sociological theories tell us about deviance and punishment in ou..

Market value weight of equity market value weight of debt : Bonaime, Inc., has 7.9 million shares of common stock outstanding. The current share price is $62.90, and the book value per share is $5.90. The company also has two bond issues outstanding. The first bond issue has a face value of $71.9 million, a c..

Project has an initial cost : A project has an initial cost of $37,750, expected net cash inflows of $11,000 per year for 8 years, and a cost of capital of 10%. What is the project's PI?

What is company target debt–equity ratio : Fama’s Llamas has a WACC of 9.4 percent. The company’s cost of equity is 11.4 percent, and its pretax cost of debt is 7.8 percent. The tax rate is 30 percent. What is the company’s target debt–equity ratio?

Prepare an essay and discuss why you made the selection : Prepare an essay and discuss why you made this selection. Also, make sure your main ideas on why you selected this company are stated clearly and precise so the reader can understand why you selected this company.

Discuss what you are interested in with your instructor : Draft 2-3 general Public Health topics that you would be interested in researching for your Research Study Proposal, and create 1-2 potential research questions for each.Keep your research questions simple. Try to focus them around two groups of p..

Monthly loan payments personal finance problem : Tim Smith is shopping for a used car. He has found one priced at $4,000. The salesman has told Tim that if he can come up with a down payment of $700, the dealer will finance the balance of the price at an annual rate of 15% over 4 years (48 months)...

User Account

All Pages