What are the projects NPV and IRR respectively

Assignment Help Financial Management

Reference no: EM131182519

A company is considering entering into a joint venture that will require an investment of $10 million. The project is expected to generate cash flows of $4 million, $3 million, and $4 million in each of the next three years, respectively. Assuming a discount rate of 10%, what are the project's NPV and IRR, respectively?

Reference no: EM131182519

Questions Cloud

Provisions impair or preclude negotiability : State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either “Negotiable” or “Nonnegotiable” and explain why.

Stock comes from the present value of growth opportunities : Help Jenny to forecast dividend payments for Reeby Sports and to estimate the value of the stock. You may wish to calculate two figures, one on the assumption that the opportunity for further profitable investment disappears after six years and anoth..

Stock price interpretations : "The stock market's recent climb has been driven by falling interest rates." "Future stock prices are dependent on the Fed's policy meeting next week." "Given a recent climb in stocks cannot be explained by fundamentals, a correction is inevitable."

What is expected return of your portfolio : Assuming that you own all the assets listed below, what is the expected return of your portfolio?

What are the projects NPV and IRR respectively : A company is considering entering into a joint venture that will require an investment of $10 million. The project is expected to generate cash flows of $4 million, $3 million, and $4 million in each of the next three years, respectively. Assuming a ..

Determine income distribution if net income of partnership : Ray Davies and Dave Davies formed a partnership, investing $ 260,000 and $ 180,000 respectively. The partnership agreement calls for a return of 10% interest on their original investment, Ray is to have a salary of $ 20,000 per year, Dave is to have ..

Qualified dividend and long term capital gains distributions : You are planning to save $5k/year, at the end of each year, and invest into a diversified stock index fund. The fund is anticipated to yield an 9.4% total annual return, of which about 3% will be in the form of qualified dividend and long term capita..

Find the present value of all purchase-associated cash flow : You are considering whether to buy or rent a residence. You think you'll probably move in the next 8 years, so that's your time horizon for this decision. If you buy, the place costs $100K. You have to pay 20K as a downpayment, and take out a mortgag..

Make journal entries reflecting all activity relating : Apollo sends out an Earnest money deposit of $10,000 for 123 Dragon way on December 31, 2015. Apollo purchased 123 Dragon way on March 1, 2016 in the amount of $470,000. The property was leveraged with an 80% loan from Anchor Capital with 8% financin..

User Account

All Pages