Risk among propane-butane terminals-crude terminals

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1. You are considering a project that promises you cash flows of 526 USD each year for 3 years. Based on the riskiness of the project, you require a 13 percent return. The cost to buy into the project is 3,454. What is the project NPV?

2. What is the present value of $1,000 received four years from now at a discount rate of 6%? Type in your answer as dollars and cents (XXX.XX). Use a positive value.

3. NGL Energy Partners spreads its risk among propane/butane terminals, crude terminals, water facilities, refined fuel terminals, truck stations, rail leases and renewables. Currently yields at 13.51%. What does this tell you about the risk of the company?

Reference no: EM132040379

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