Using the net present value when evaluating projects

Assignment Help Financial Management
Reference no: EM13810540

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 10.66 percent. The initial outlay for the project is $414,171. The project will produce the following after-tax cash inflows of

Year 1: 128,639

Year 2: 42,527

Year 3: 34,446

Year 4: 141,937

Round the answer to two decimal places in percentage form.

Reference no: EM13810540

Questions Cloud

P-E Ratio and Stock Price International Business Machines : P/E Ratio and Stock Price International Business Machines (IBM) has earnings per share of $6.90 and a P/E ratio of 15.20. What is the stock price?
Case study on altex corporation : Read Case: Altex Corporation in the case study section of your text. Write a summary of the case and answer the following questions from the end of the case.
Explain the key concept of utilitarianism : Explain the key concept of utilitarianism, Compare and contrast quantitative and qualitative utilitarianism, List the strengths and weaknesses of Mill's approach
What is the companys required return : CAPM Required Return A company has a beta of .69. If the market return is expected to be 13.9 percent and the risk-free rate is 5.95 percent, what is the company's required return?
Using the net present value when evaluating projects : 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 10.66 percent. The initial outlay for the project is $414,171.
Describe the project scope and project management plan : Describe the project scope and project management plan. Align your plan to the overall strategy that you had recommended to the senior executives.
What is the return shareholders are expecting : Expected Return Circuit City Stores (CC) recently paid a $.25 dividend. The dividend is expected to grow at a 23.90 percent rate. At the current stock price of $8.86, what is the return shareholders are expecting?
Describe acts of terrorism and cyber-attacks : The Homeland Security Presidential Directive 8 is aimed at strengthening the security and resilience of the United States through systematic preparation for the threats that pose the greatest risk to the security of the nation, including the follo..
What is its expected return : Expected Return If a company's current stock price is $26.50 and it is likely to pay a $2.25 dividend next year. Since analysts estimate the company will have a 15% growth rate, what is its expected return?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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