Should you recommend the project

Reference no: EM131961254

Question: You have a construction project to evaluate costing 10,000,000 for construction on a 1,000,000 piece of land. It has a 20 year life with a scrap value of 1,000,000. There SG&A associated of 10,000 and no cost of goods sold. There will be no increase in working capital required. Other expenses include legal 40,000, survey 10,000 and capitalized interest 100,000. The cost of capital is 8%. Should you recommend the project?

Reference no: EM131961254

Questions Cloud

What are some options to address issues : What are some issues with age discrimination within healthcare and what are some options to address these issues?

What is the market price per bond if the face value is : John Corp offers 8 percent coupon bonds with semiannual payments and a yield to maturity of 6.5 percent. The bonds mature in 2 years.

Some options to address issues : What are some issues with gender discrimination within healthcare and what are some options to address these issues?

How much money will be in the fund at the end of 6 years : Jimmy deposits $ 3,800 now, $ 2,700 3 years from now, and $ 4,400 6 years from now. Interest is 7 % for the first 3 years and 8 % for the last 3 years.

Should you recommend the project : You have a construction project to evaluate costing 10,000,000 for construction on a 1,000,000 piece of land. It has a 20 year life with a scrap value.

Determine what is the companys total book value of debt : Jiminy's Cricket Farm issued a bond with 15 years to maturity and a semiannual coupon rate of 10 percent 4 years ago.

What would be his net profit if the spot rate at the end : Discuss whether he should buy a Put on S$ or Call on S$, and what would be his net profit if the spot rate at the end of the 180 days.

How much are you willing to pay for one share of this stock : The company justr announced that future dividends will be increasing by 2 percent annually.

Prepare a loan amortization schedule showing the interest : Prepare a loan amortization schedule showing the interest and principal breadown of each of the three loan payments.

User Account

All Pages