Project requires an initial cash outlay

Assignment Help Financial Management
Reference no: EM131060892

A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s NPV? Show your work.

Reference no: EM131060892

Questions Cloud

Customer interacts with an organisation : Select a scenario that you are familiar with where a customer interacts with an organisation. For example a customer in an electronics shop, a client in a pet shop, a person borrowing books in a library. Describe who the two parties are, and what ..
Dividend out in equal quarterly installments to shareholders : Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out i..
Calculate the maximum bending stress smax in the strip : By what percent does the stress increase or decrease if the thickness of the strip is increased by 1/32 in.?
Roles in venturing into new business markets : Describe the term institution in business and explain its roles in venturing into new business markets and how weak institution can act as barrier to new entry.
Project requires an initial cash outlay : A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s NPV? Show your work.
Which stock has the highest capital gains yield : Chapman Tech is expected to pay a$1.20 dividend at the end of the year. The required return on chapmans stock is 11% and its dividend is expected to grow at a constant rate of 7% per year. which stock has the highest dividend yield (DY)? which stock ..
What is the probability distribution of the stock price : What is the probability distribution of the stock price at the end of 2 years? ½ years? ¼ years? Dt years?
How they spurred the development of aviation technology : Summarize the military aspects of aviation during this period. Compare this period of tension with the actual wars in the twentieth century and how they spurred the development of aviation technology.
Organizational culture of the company : Create a research paper that discusses how one company (of your choice) illustrates social responsibility in its environment. Discuss what leadership does to promote social responsibility and how this ties to ethics and the organizational culture of..

Reviews

Write a Review

Financial Management Questions & Answers

  What was the percentage gain or loss on this investment

You sold 800 shares short of Rockwool Inc. at $54 a share. The price of the stock subsequently fell to $38 before rising to $62 at which time you covered the position (that is, closed the short position). What was the percentage gain or loss on this ..

  How much will your dream house cost by the time

You hope to buy your dream house six years from now. Today your dream house costs $189,900. You expect housing prices to rise by an average of 4.5% per year over the next six years. How much will your dream house cost by the time you are ready to buy..

  Consider the following data for abc enterprises all numbers

consider the following data for abc enterprises all numbers in euro today is january 1 2013 income statement for 2012

  Improving the organizations financial position

Identify at least three objectives for improving the organization's financial position and show how they relate to the mission, vision, and strategy of the organization.

  What is her portfolios beta

An individual has $20,000 invested in a stock with a beta of 0.3 and another $60,000 invested in a stock with a beta of 1.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places..

  What is the full price of this bond given the required yield

Suppose that a U.S. Treasury note maturing June 15, 1995 is purchased with a settlement date of February 17, 1994. The coupon rate is 4.125% and the par value is $100,000. The next coupon date is June 15, 1994. What is the full (dirty) price of this ..

  Linear regression for projecting next years sales

If the sales data from 2009-2013 had been 1024, 1499, 1589, 1823, and 1950 using linear regression - what would the projected sales figure for 2014 be? What assumption is made when you use Linear Regression for projecting next year's sales? Is this a..

  Should abilia refinance her loan

Two years ago Abilia purchased a $13,000 car; she paid $2,500 down and borrowed the rest. She took a fixed rate 60-month instalment loan at a stated rate of 7.0% per year. Interest rates have fallen during the last two years and she can refinance her..

  Business concept-appropriate for sole proprietorship

What business concept would be appropriate for a sole proprietorship? A corporation? A limited liability company? If you were opening your dream business, what structure would you select? Why?

  What is the cost of equity of this firm

Suppose the Simmons Co's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity in the firm’s bonds is 7.6 percent and the debt-equity ratio is .45. What is the cost of eq..

  Find the modified internal rate of return

Find the modified internal rate of return (MIRR) for the following series of future cash flows. The company can reinvest the cash flows from the project at an annual rate of 4.45%. The initial outlay is $670,560.

  Estimate the present value of tax benefits from depreciation

Your company is considering a new project that will require $855,000 of new equipment at the start of the project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of $144,000 using straight-line depreciat..

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