Using the net present value when evaluating projects

Assignment Help Financial Management

Reference no: EM131537187

Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company’s project, assuming the company’s cost of capital is 8.01 percent. The initial outlay for the project is $345,647. The project will produce the following after-tax cash inflows of

Year 1: 170,935

Year 2: 2,439

Year 3: 78,970

Year 4: 120,194

Round the answer to two decimal places.

Reference no: EM131537187

Questions Cloud

What is the price of the share : After year 7, dividends will grow by a 5% annual rate. What is the price of the share based on these forecast and a 16% rate of return?

Based on the current spot price : Based on the current spot price, what should be the futures price?

What is the default risk spread : What is the default risk spread (difference between your country's treasury bill rate and the us treasury bill rate)?

What rate of return should an investor expect : Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds?

Using the net present value when evaluating projects : Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. The project will produce the following after-tax cash inflows.

The matter of corporate criminal liability : What are the principal approaches to the matter of corporate criminal liability, and what would you say were the main arguments for.

What would be the advantages of having a professional ao : The accounting profession in Africa has been infl uenced by the European colonial powers that formerly governed there.

Importance of present and future values : Critically reflect on the importance of present and future values. What factors must be considered when calculating present and future values?

What is the equilibrium market forecast : What is the equilibrium market forecast for 1-year rates 1 year from now?

User Account

All Pages