Project has annual cash flows

Assignment Help Financial Management
Reference no: EM13939861

A project has annual cash flows of $7,000 for the next 10 years and then $11,000 each year for the following 10 years. The IRR of this 20-year project is 12.74%. If the firm's WACC is 12%, what is the project's NPV? Round your answer to the nearest cent.

Reference no: EM13939861

Questions Cloud

Company corporate-level strategy : Include your company's corporate-level strategy (diversified or single-business), business-level strategy (Porter's five generic strategies, as well as basic strategic initiatives), and business model (how does the company generate revenues, lower..
Coupon bonds making annual payments : Backwater Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.2 percent. The current yield on these bonds is 5.55 percent. How many years do these bonds have left until they mature?
What might a researcher learn from scientific journals : What impact would the construction of a highway have on the living organisms and salinity of an esturary, if it closes the esturay's opening to the ocean?
Explain the inheritance concept in java programming. : Explain why the inheritance concept is useful for a programmer.
Project has annual cash flows : A project has annual cash flows of $7,000 for the next 10 years and then $11,000 each year for the following 10 years. The IRR of this 20-year project is 12.74%. If the firm's WACC is 12%, what is the project's NPV?
Claim to reduce his payments on account : Evan did not receive a tax return for 2010-11 but he was aware that he had income which had not been assessed to tax. He notified HMRC of this fact on 2nd October 2011 and a return was issued to him on November 15th 2011. He completed the return a..
Investment bankers require an underwriting spread : The Mitchell Company needs to raise $50 million of new equity capital. Its common stock is currently selling for $50 per share. The investment bankers require an underwriting spread of 3% of the offering price, and the company's legal, accounting, an..
Education of children''s rights at schools : I am thinking about the education of children's rights at schools. I want to investigate how much informed are teachers about children's rights and what do they do in order to promote them.
Mainstream ir theories of realism and liberalism : Mainstream IR theories of realism, liberalism and constructivism. Which one do you think has the LEAST explanatory power and why

Reviews

Write a Review

Financial Management Questions & Answers

  Municipal bond with a coupon rate

A municipal bond with a coupon rate of 4.80 percent sells for $4,850 and has five years until maturity. What is the yield to maturity of the bond?

  What is current value of put option with exercise price

Suppose VS's stock price is currently $20. In the next six months it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).

  The yeild to maturirty on the bond with the cusip

The Yeild to maturirty on the bond with the cusip 855244AD1 is less than the coupon on the bond. A firm has a cost of equity of 13 percent, a cost of preferred of 11 percent, and an aftertax cost of debt of 6 percent. Givin this, which one of the fol..

  What is this bonds yield-to-call

Suppose that you have a bond that is currently trading for 1,234.56, has just paid its coupon, has a time-to-maturity of   14 years, has an annual coupon rate of 7.1%, and a face value of $1,000. This bond is unique in that the issuing firm has the r..

  Considering undertaking a land improvement practice

You are considering undertaking a land improvement practice that will cost you $120 per acre to establish and an additional $8 per acre to maintain over the next 10 years. Assuming a real discount rate of 4%, what is the present value of the total co..

  Difference between being unemployed-being out of labor force

What is the difference between being unemployed and being out of the labor force? A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What’..

  What is the amount of profit you earned

Determining Profit or Loss from an Investment. What is the amount of profit you earned on each share of IBM stock

  Share of preferred stock pays a constant dividend

Assume a share of preferred stock pays a constant dividend of $1.15. If the required return is 5%, what is the expected price of this preferred stock?

  What is the amount of the costs incurred by the firm

Jonstone Nurseries, Inc., incurred depreciation expenses of $31,300 last year. The sales were $212,000 and the addition to retained earnings was $18,405. The firm paid interest of $5,100 and dividends of $7,500. The tax rate is 34%. What is the amoun..

  What would be the equal annual payments

Suppose you are the manager of a mortgage department at a savings bank. Under the state usury law, the maximum interest rate allowed for mortgages is 10% compounded annually. If you granted a $50,000 mortgage at the maximum rate for 30 years, what wo..

  Identify specific fraud risk present

Identify specific fraud risk present during PwC's audits of the Lipper hedge funds. Explain how Pwc should have responded to the fraud risk factors that you identified.

  Discuss why a bank should examine each component

What are the conceptual differences between the trend, seasonal, and cyclical components of a bank's loans and deposits? Discuss why a bank should examine each component rather than simply look at total loans and deposits.

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