Project net present value if the required rate of return

Assignment Help Financial Management

Reference no: EM13945160

A project is expected to create operating cash flows of $24,500 a year for three years. The initial cost of the fixed assets is $55,000. These assets will be worthless at the end of the project. An additional $4,000 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 10 percent?

Reference no: EM13945160

Questions Cloud

A1, a2, a3 form a partition of the universal set s : Suppoe that A1, A2, A3 form a partition of the universal set S. Let B be an arbitrary set. Assume that we know |B∩A1|=10, |B∩A2|=20,

Tax purposes-what is the aftertax salvage value of asset : An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,080,000 and will be sold for $1,280,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax s..

Rover''s friends provides dog washing services. : Rover's Friends provides dog washing services. For each dog, supplies cost $ 3 and wages are $ 5. To provide this service, a special room and equipment are needed, at a cost of $ 300 per month. Rover's Friends maintains an average of 30 dogs washed e..

Project will produce an operating cash flow : A project will produce an operating cash flow of $7,300 a year for three years. The initial cash outlay for equipment will be $11,600. The net aftertax salvage value of $3,500 will be received at the end of the project. The project requires $800 of n..

Project net present value if the required rate of return : A project is expected to create operating cash flows of $24,500 a year for three years. The initial cost of the fixed assets is $55,000. These assets will be worthless at the end of the project. An additional $4,000 of net working capital will be req..

What is the firms cash conversion cycle : Romano Inc. has the following data. What is the firm's cash conversion cycle?

A vehicle accessory shop is considering buying a new style : A vehicle accessory shop is considering buying a new style of wheels for $ 168 and selling them at $ 369.60 for each wheel. Fixed costs related to this new style of wheel amount to $ 2465. It is estimated that 16 wheels per month could be sold. How m..

Describe the changing face of ethnicity and current ethnic : What is ethnic consciousness? Describe the changing face of ethnicity and current ethnic issues. What do your authors write about the future of racial and ethnic diversity?

Assigned discount rate : Bloomfield Tires has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $74,300, $128,700, and $89,500 for Years 1 to 3, respectively. What is the net present value of this project?

User Account

All Pages