Project net present value

Assignment Help Finance Basics
Reference no: EM131513054

A project is expected to create operating cash flows of $26,500 a year for four years. The initial cost of the fixed assets is $62,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?

a) $19,208.11

b) $14,028.18

c) $15,306.09

d) $17,396.31

e) $21,954.17

Reference no: EM131513054

Questions Cloud

What was the boston beers net income for the current year : What was the Boston Beer's net income for the current year? Did their income increase or decrease from the previous year? By how much?
Develop strategies to manage the risks : Assess the risks in the various types of financial markets and develop strategies to manage the risks.
Report on the marketing communication strategies : BMA349 Advertising and Promotion Assessment Item - Marketing Communication Report. Report on the marketing communication strategies for the proposed campaign
Valuation of various types of securities : Assess the current risk return relationship of each of the three (3) securities. Determine the valuation of various types of securities.
Project net present value : What is the project's net present value if the required rate of return is 12 percent?
Compute the ratios below for blue bill corporation : Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010.
Unique to the firm and industry : For the firm VERIZON - determine the overall cost of equity for the firm. What are the factors that influence the cost of equity for the firm that are unique?
Determine the cost of debt for the firm : For the firm VERIZON - determine the cost of debt for the firm using the most recently issued bond of the firm. Do not forget the income tax implications.
What power issues can you discern : What power issues can you discern: who had power over whom and in what ways? Who wa marginalized an in what ways?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the probability distribution for number of dry wells

What is the probability that all 12 are dry wells? What is the probability distribution for the number of dry wells?

  How much would the roe change in response

Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure?

  Research bank of america and access the companys web page

research bank of america and access the companys web page on the internet to read their most recent annual report. the

  What is the principal balance on the loan

You take out a 30-year $100,000 mortgage loan with an APR of 6% and monthly payments. In 12 payments (1year) you decide to sell your house and pay off the mortgage. What is the principal balance on the loan at the time you decide to pay it off

  What is the firms current value of operations

Suppose A has $5M in marketable securities, $200M in liabilities, and 20M shares of stock. What is A's share price?

  Compute rippard net profit margin

Rippard's has a debt ratio of 24 percent, a total asset turnover ratio of 1.3 and a return on equity (ROE) of 60 percent. Compute Rippard's net profit margin. (Record your answer as a percent rounded to one decimal place but do not include the per..

  Calculate a table of interest rates

Calculate a table of interest rates for 5 years based on the following information:

  What is the current stock price

You are provided with the following options quote from CBOE: What is the current stock price? What is the immediate payoff if the $31 strike, October Call Option is exercised right now? What is the immediate payoff if the $31 strike, October Put Opti..

  What is the cost of debt to j & b

J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity on these bonds is 14%. If the firm's tax rate is 40%, what is the cost of debt to J & B?

  What impact would the following actions have on the

what impact would the following actions have on the operating and cash conversion cycles? would the cycles increase

  Expected constant-growth rate of dividends

Question 1. What is the expected constant-growth rate of dividends for a stock with a current price of $87, an expected next period dividend payment of $5.40 per share, and a discount rate of 16%?

  Distinguish between business risk and financial risk

Distinguish between business risk and financial risk. What gives rise to, or causes, each type of risk?

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