User Account

All Pages

Proposed business a good investment

Assignment Help Finance Basics
Reference no: EM131757119

Your real estate agent has found a business investment. The business will cost $400,000 to purchase. The forecast is for 3 years of after-tax ash flow: [1] $120,000; [2] $180.000; [3] $300,000. Using a discount rate of 17.5% is this proposed business a good investment?

  • Yes; the NPV = $200,000
  • Yes, the NPV = $17,434
  • Yes; the NPV = 0
  • No; the NPV = - $200,000
  • No; the NPV = -$24,718

Reference no: EM131757119

Questions Cloud

Why should gess expect to pay a higher rate of interest : Why should GESS expect to pay a higher rate of interest if it borrows $4,000,000 rather than $2,000,000?
Demonstrate an understanding of management accounting system : Demonstrate an understanding of management accounting systems, Different types of management accounting systems and Microeconomic techniques
Case study on double ink printers ltd : HI6026 Auditing and Assurance Services Assignment T3 2017, explain whether it will be necessary to use the work of an expert in the audit of DIPL.
Globalization of financial markets : Globalization is an economic reality which is usually discussed under two aspects, globalization of financial markets and international business activities.
Proposed business a good investment : The forecast is for 3 years of after-tax ash flow: [1] $120,000; [2] $180.000; [3] $300,000. Using a discount rate of 17.5% is this proposed business a good?
Director of capital budgeting for laguna : The director of capital budgeting for Laguna Inc., manufacturers of beach equipment, is considering a plan to expand production facilities in order to meet
Pay off the loan : She just made the seventh payment. Now she wants to pay off the loan. About how much does she still owe on the loan?
Rate of interest must linda earn on the ira : She plans to invest $20,000 a year into the account until she retires. About what rate of interest must Linda earn on the IRA to meet her goal?
Company decide to pay a dividend to their investors : Why would a company decide to pay a dividend to their investors? Conversely, why do some companies choose to pay no dividend?

Reviews

Write a Review

Finance Basics Questions & Answers

  Value of foreign stocks in an investment portfolio

Discuss the value of foreign stocks in an investment portfolio. Do you want them? If so, which ones? Do you diversify the classes as you would domestic stock?

  Finance area of a company

You are an individual within the finance area of your company, and you are preparing final budgets to present to your board of directors for the coming year.

  What is the npv of the new plant

What is the NPV of the new plant? Assume that PC has a 35 percent tax rate.

  The variable cost per pack is 10 and at current annual

southwest us campus book store sells course packs for 16 each. the variable cost per pack is 10 and at current annual

  Calculate the rate of return earned over the unspecified

For each of the investments shown in the following table, calculate the rate of return earned over the unspecified timeperiod.

  Calculate earnings per share

Southland Industries has $60,000 of 16 percent bonds outstanding, 1,500 shares of preferred stock paying an yearly dividend of $5 per share, and 4,000 shares of common stock outstanding.

  President of the company and has the support

Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the company and has the support of the existing board of directors. All 13 members of the board are up for reelection. Mr. Clark is a dissident stockho..

  Should the fed raise its policy rate at the december meeting

Make sure you support your response with relevant data. Should the Fed raise its policy rate at the December meeting?

  Evaluate the efficiency of two of the most common currencies

Evaluate the efficiency of two of the most common currencies / foreign exchange derivatives that companies use in order to minimize translation and transaction exposure.

  Calculate mean return std and beta of the two portfolios

Calculate mean return, STD, and beta of the two portfolios: Portfolio A (90% in ^GSPC and 10% in DX), Portfolio B (90% in ^GSPC and 10% in IP). Must show your calculation by including the formulas you used.

  Selling administrative and depreciation expenses

Selling, administrative, and depreciation expenses for the month were $20,000. BrightStar's tax rate is 35 percent. Use this information and the table above to complete the following: Calculate the cost of ending inventory and the cost of goods sold ..

  What should be the price of the same disc in mexico

In the spot market, 10.5 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc costs $15 in the United States. If purchasing power parity (PPP) holds, what should be the price of the same disc in Mexico?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd