Watson clinic is evaluating a project that costs 52100 and

Reference no: EM13481516

Watson Clinic is evaluating a project that costs $52,100 and has expected annual net cash inflows of $11,500 for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent.

What is the project's NPV

Timeline: 0|---------|-----------|----------|--------------|-----------|-----------|------------|------------|

11,500 12,880 14,425 16,156 18,095 20,266 22,698 25,422

NVP(0.12,11500:25422) - 52,100 =

1.What is the project's IRR

IRR = IRR(0.12, 11500:25422) - 52100 =

2.Is the project financially acceptable? Please explain your answer.

Reference no: EM13481516

Questions Cloud

Remco gourmet water company produces and distributes : remco gourmet water company produces and distributes bottled water in a variety of natural flavors. jan cancel a

What measures might a company take to obtain valid data for : what measures might a company take to obtain valid data for setting the labor time

Using headings of assets liabilities owners equity : using headings of assets liabilities owners equity netincome show the affect if any from the transactions below.

Torrid romance publishers has total receivables of 2820 : torrid romance publishers has total receivables of 2820 which represents 20 days sales. total assets are 70500. the

Watson clinic is evaluating a project that costs 52100 and : watson clinic is evaluating a project that costs 52100 and has expected annual net cash inflows of 11500 for eight

On apr 1 2008 ob company entered into a 10 yearfranchise : on apr 1 2008 ob company entered into a 10 yearfranchise agreement with a group of individuals. the firm recevies

Keller cosmetics maintains an operating profit margin of 60 : keller cosmetics maintains an operating profit margin of 6.0 and asset turnover ratio of 4.0. a. what is its roa? round

Rearrange the income statement to the contribution margin : here is the questionpresented below is the income statement

Calculate the total amount of cash that michael would pay : michael just graduated from college and has his first job. his salary is that of an entry-level employee so he has to

User Account

All Pages