User Account

All Pages

What if required rate of return is instead Re-calculate NPV

Assignment Help Financial Accounting
Reference no: EM132471971

Problem 1: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42.

Question 1: What if the required rate of return is 8% instead? Re-calculate the NPV.

Reference no: EM132471971

Questions Cloud

What is the net present value of the project : Cash flows of $258 in the last year of the project. If the required rate of return on the project is 4%, what is the net present value (NPV) of the project?
How nursing professional can benefit from integrating tenets : Discuss how nursing professionals can benefit from integrating the tenets of servant leadership to empower and influence others as they lead.
Determine what if the annual cash flow increases to instead : Determine What if the annual cash flow increases to $59,000 instead? Re-calculate the NPV. Return (cost of capital) is 15%. The net present value is $736.42.
Define nutritional challenges for emerging populations : Discuss why nutrition is a central component in health promotion. What are some of the nutritional challenges for emerging populations?
What if required rate of return is instead Re-calculate NPV : return (cost of capital) is 15%. The net present value is $736.42. What if the required rate of return is 8% instead? Re-calculate the NPV.
Explain your answer in the context of a natural disaster : What spiritual considerations surrounding a disaster can arise for individuals, communities, and health care providers? Explain your answer in the context.
What is the after-tax salvage value : Equipment is 7-year MACRS property. The firm is selling this equipment today for $10,422. What is the After-tax Salvage Value if the tax rate is 33 percent?
Why psychological and spiritual aspects are important : Explain why psychological, cultural, and spiritual aspects are important to consider for a patient who has been diagnosed with diabetes. Describe how support.
Determine what is the current book value of the equipment : ABC Company purchased a 3-year MACRS property for $52,627 3 years ago. What is the current book value of this equipment?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine minimum price that shorewood shoes should charge

Determine the minimum price that Shorewood Shoes should charge for this order. What other considerations are relevant in this decision?

  Determine the optimal capital structure

Calculate the expected earnings per share (EPS), the standard deviation of EPS, and the coefficient of variation of EPS for the three proposed capital structure

  Expected sales revenues for the coming year

Harriman Entertainment produced and sold 140,000 video games for $15 each last year. Demand is strong for the company's video games, and Harriman believes that volume will increase by 25 percent even if the company increases the game price by 20 perc..

  Concepts of accrual accounting and going concern

Please discuss whether the revaluation of land and buildings other than investment properties is compatible with the fundamental accounting concepts of accrual accounting and going concern.

  When doing a horizontal analysis and when asked to pick

When doing a horizontal analysis and when asked to pick a trend, how do you pick a trend and how do you explain it?The response paper should be in APA format.

  Considering purchasing one of two new diagnostic machines

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn’t equipped to do. Estimates regarding each machine are provided below. Calculate the ne..

  Examine the sales budget profit budget cash flow budget

Examine the sales budget profit budget cash flow budget and debtor ageing summary. Develop an actual-to-budget variance report using the template provided

  Calculate the predetermined overhead rate

Lu Technology, Co., manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing and has a perpetual inventory system.

  Differences in measurement focus and basis of accounting

Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified acc..

  Reconcile their records

Bank customers should reconcile their records frequently

  Which users may be interested in each type of ratio

Which users may be interested in each type of ratio? What does the collected data reveal about the performance and position of the company?

  Channel functions performed by intermediaries

Identify and explain 4 channel functions performed by intermediaries. Identify and explain each of the goals of promotion.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd