Recalculate the npv for the proposal now assuming that the

Reference no: EM13622666

Calculate the NPV for the following capital budgeting proposal: $100,000 initial cost, to be depreciated straight-line over five years to an expected salvage value of $5,000, 35% tax rate, $45,000 additional annual revenues, $15,000 additional annual expense, $8,000 additional investment in working capital, 11% cost of capital. Recalculate the NPV for the proposal, now assuming that the $45,000 in annual revenues will grow at a 6% annual rate and that the $15,000 in annual expenses will grow at a 5% annual rate. Does this change your decision on the project?

Reference no: EM13622666

Questions Cloud

A 230-cm-high object is situated 201 cm in front of a : a 2.30-cm-high object is situated 20.1 cm in front of a concave mirror that has a radius of curvature of 13.4 cm.

Create an appropriate 95 confidence interval to test if the : to investigate the maternal behavior of laboratory rats we move the rat pup a fixed distance from the mother and record

A magnetic brake system is used to slow the car to a speed : thecoaster cars are lifted up the initial hill which has a height of 85 feet and released at the top of the hill with a

An image of the moon is focused onto a screen using a : an image of the moon is focused onto a screen using a converging lens of focal length f 36.8 cm. the diameter of the

Recalculate the npv for the proposal now assuming that the : calculate the npv for the following capital budgeting proposal 100000 initial cost to be depreciated straight-line over

If the length of an earth day is 24 hrs and the rauis of : a synchronous orbit about the earth is obtained when the period of the orbit is same as the length of the day. if the

Suppose there is a financial asset abc which is the : suppose there is a financial asset abc which is the underlying asset for a futures contract with settlement six months

In a diffraction grating experiment a hydrogen source is : can two monochromatic sources of significant frequency difference produce an observable interference pattern? in a

The temperature is now increased until the height of the : a cylindrical flask is fitted with an airtight piston that is free to slide up and down. a mass rests on top of the

User Account

All Pages