The risk adjusted discount rate for the firm is 12 and the

Assignment Help Finance Basics
Reference no: EM13572523

Corporation considering the purchase of a new machine with an initial outlay of 4000. and expected cash flows in yrs. 1-4 for 2200 per yr. The risk adjusted discount rate for the firm is 12% and the risk free rate is 5%. Compute the net present value of this project.

A. $4300
B. $2181
C. $1899
D. $1535

Reference no: EM13572523

Questions Cloud

Hermione and ron formed an s corporation called bumblebore : hermione and ron formed an s corporation called bumblebore. harry and hermione both contributed cash of 25000 to get
It is further estimated that small lamp production will : diamond company produces a chair that requires 5 yds. of material per unit. the standard price of one yard of material
Essay question geneticists claims such as race as an : essay question geneticists claims such as race as an imperfect proxy or a holding place for genetic variation is not
Sugarland company sells a single product and anticipates : sugarland company sells a single product and anticipates opening a new facility in charlotte on may 1 of the current
The risk adjusted discount rate for the firm is 12 and the : corporation considering the purchase of a new machine with an initial outlay of 4000. and expected cash flows in yrs.
Delicious cake factory normally sells their specialty cake : 1- diamond company produces a chair that requires 5 yds. of material per unit. the standard price of one yard of
A company has fixed costs of 90000 its contribution margin : a company has fixed costs of 90000. its contribution margin ratio is 30 and the product sells for 75 per unit. what is
Explain what type of audit report is used when the entity : explain what type of audit report is used when the entity would not allow the cpa to confirm any of the accounts
What will the required deposit today be in order to be : what will the required deposit today be in order to be able to withdraw 19000 in 4 years and 18000 in 14 years if the

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

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