Q 1 how determine the npv by using required rate of return

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Q. 1) How determine the NPV by using required rate of return when there are no given cash flows? Three year expansion project. Initial fixed investment of= $2.7 million. Depreciates straight line to zero over three year tax life, valueless afterwards. Estimated to make $2,080,000 in annual sales with costs of= $775,000. Tax rate is 35%, required rate of return is= 12%, what is project's NPV?

2) Write down the advantages of the mutual funds offer compared to company stock? Suppose that you invest 5% of your salary and receive full 5% match from RCM Inc. Air. What EAR do you earn from match? What conclusions do you draw about matching plans?

Reference no: EM13355483

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