The risk adjusted wacc is 15 calculate the npv with

Assignment Help Finance Basics
Reference no: EM13479470

A mining company is considering a new project.The firm could spend an additional $10 million at Year 0 to mitigate the environmental problem, but it would not be required to do so.Developing the mine without mitigation would cost $60 million, and the expected net cash inflows would be $20 million per year for 5 years. If the company does invest in mitigation, the annual inflows would be $21 million.The risk adjusted WACC is 15%.

Calculate the NPV with Mitigation.

Reference no: EM13479470

Questions Cloud

A part of its international expansion program acme a us : as part of its international expansion program acme a u.s. multinational enterprise mne is currently in the planning
Do you think that the dividend is affecting the price of a : what is the risk on different financial assets and what is affecting their risk?how many different bonds and stocks
How can a company implement a marketing campaign what : how can a company implement a marketing campaign? what would be the time frame? what are the costs and resources
Youve purchased a car for 10000 and now are deciding : youve purchased a car for 10000 and now are deciding whether to have a moonroof installed for 400 and a security
The risk adjusted wacc is 15 calculate the npv with : a mining company is considering a new project.the firm could spend an additional 10 million at year 0 to mitigate the
Select a city in the middle east that interests you and : select a city in the middle east that interests you and will give you the opportunity to learn more about the history
A corporation issued 350 shares of its 10 par value common : a corporation issued 350 shares of its 10 par value common stock in payment of a 3970 charge from its accountant for
Suppose the real risk-free rate r is 2 and investors expect : financial management - overview and environment1. suppose the real risk-free rate r is 2 and investors expect inflation
Given the following information what is the effective cost : given the following information what is the effective cost of the new machine that is what is the cash flow at t

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain advantages and disadvantages of consumer credit

Discuss and explain the advantages and disadvantages of consumer credit and to make sure to explain what leverage is and why it is important.

  What is your estimate of the stock current price

The company's stock has a beta of 1.8, the risk-free rate is 3.5%, and the market risk premium is 6%. What is your estimate of the stock's current price? Round your answer to the nearest cent.

  Ricky spends 10319 in additional interest and charges on

ricky spends 103.19 in additional interest and charges on monthly payments as the result of the prior bankrupsy if

  What will happen to the demand for corporate bonds

The default risk of corporate bonds decreases, what will happen to the demand for corporate bonds, the price of corporate bonds, the demand for treasuries, and the price for treasuries?

  What is the aftertax cash flow from the sale of this asset

Consider an asset that costs $640,000 and is depreciated straight-line to zero over its eight-year tax life.

  Risks of noncompliance in corporate governance

Organizations must address compliance concerns to ensure their longevity. There is a measurable amount of risk associated with falling out of compliance. The degree of risk to an organization differs from one compliance issue to another.

  Which is the lower rate

You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 13% APR, compounded monthly, or borrow the money from youe parents, who want an interest payment of 6% every six months. which is the lower..

  Assessing economic exposure

Alaska, Inc., plans to create and finance the subsidiary in Mexico which produces computer components at a low cost and export them to other countries. It has no other international business. The subsidiary will produce computers and export them t..

  What is the bond nominal coupon interest rate

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $975. What is the bond's nominal coupon interest rate?

  Describing cost of financial distress

Find out the value of the firm's equity? What is the promised return on company's debt? Find out the value of the firm? How much would the company's debt be worth if there were no bankruptcy costs?

  Find breakeven in dollars and units

Suppose you are selling crafts - candles you make at home and trade at art fairs. Your fixed costs are $5,000 per year. Every candle costs $2 to make and sells for $10.

  What is a reasonable price for a share of rah stock

RAH Inc. is not public ally traded, but the P/E ratios of its 4 closest competitors are 15, 15,3,15,7', and 16.5. RAH's current earnings per share are $ 1.50. They are expected to grow at 6% for the next few years. What is a reasonable price for a..

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