The expected cash flows for newly planned project

Assignment Help Financial Management

Reference no: EM13917279

Calculate the NPV for a project with the following cash flows, a cost of capital of 10% and an initial investment of 35,000.

Year 1: $10,000.00

Year 2: $15,000.00

Year 3: $16,000.00

What is the Net Present Value? _________________

The expected cash flows for a newly planned project are $5,000 per year for the first three years and then $6,000 for the next three years. The Cost of capital is 8% with an initial investment of $25,000. The project will last 6 years

What is the NPV? _________

Reference no: EM13917279

Questions Cloud

Shares of stock will firm distribute result of dividend : Ziegler's has the following equity account balances: common stock of $42,000 with a $1 par value, capital surplus of $228,000, and retained earnings of $509,000. The stock has a market value of $38 a share. Assume the company issues a 20 percent stoc..

How much will the liquidation dividend be per share : Presto Cleaners recently liquidated its retail dry cleaning unit. That unit represented 35 percent of the firm's overall market value. Prior to the liquidation, the firm's stock was selling for $28 a share and there were 7,000 shares outstanding. The..

Estimate of the firms next annual dividend payment : Medical Devices just paid its annual regular cash dividend of $1.90 a share, along with a special dividend of $0.60 a share. The company follows a policy of increasing its dividend by 3 percent annually. Which one of the following is the best estimat..

Flotation cost percentage of funds provided by investors : Douglass Trucking issued 120,000 shares of stock last week. The underwriters charged an 8.5 percent spread in exchange for agreeing to a firm commitment. The legal and accounting fees amounted to $395,000. What was the flotation cost as a percentage ..

The expected cash flows for newly planned project : Calculate the NPV for a project with the following cash flows, a cost of capital of 10% and an initial investment of 35,000. The expected cash flows for a newly planned project are $5,000 per year for the first three years and then $6,000 for the nex..

Compute the required rate of return for the stock : Compute the required rate of return for the stock of Howard Joel Wolowitz, Inc., if the risk-free rate is 6%, the expected market return is 12%, and Howard Joel Wolowitz's stock has a beta of 0.8.

What is the total amount issuer will receive from auction : Swenson Markets would like to sell an additional 1,000 shares of stock using a Dutch auction. However, every bidder will pay the price of the last bidder to receive any shares. In other words, everyone will pay the lowest price of all successful bidd..

Determined that the crossover rate for projects : Swenson’s is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent. Given this you know that:

What is this bond yield to call if the yield to maturity : Naggpawh fabrics has issued a 30 year par value bond that is callable in 5 years. If the coupon rate is 5.5% payable semi-annually, what is this bond’s yield to call if the yield to maturity is 8% and the call premium is one year’s interest (55 dolla..

User Account

All Pages