What is net present value

Assignment Help Financial Management
Reference no: EM132051266

The Blueberry Company is considering a project which will cost $421 initially. The project will not produce any cash flows for the first 3 years. Starting in year 4, the project will produce cash inflows of $572 a year for 4 years. This project is risky, so the firm has assigned it a discount rate of 18.2 percent. What is the net present value?

Reference no: EM132051266

Questions Cloud

Intellectual property of several tech firms : The patents and intellectual property of several tech firms (like Facebook and Google) are owned by subsidiaries in __________.
Intermolecular forces that would affect the water molecule : Explain all forces and changes that the electron undergoes as it forms an intramolecular bond with oxygen to form a water molecule.
What was the closing balance on the payables control account : Contra with receivables ledger - credit receivables ledger 15,000. What was the closing balance on the payables control account
Discuss why the land is worth more in the problem : Briefly discuss why the land is worth more in this problem than in the previous problem. Also explain briefly why is it better not to build the project today.
What is net present value : This project is risky, so the firm has assigned it a discount rate of 18.2 percent. What is the net present value?
Closest approximation of the lattice energy of naf : Which of the following values is the closest approximation of the lattice energy of NaF: 682 kJ/mol, 794 kJ/mol, 924 kJ/mol, 1588 kJ/mol, or 3175 kJ/mol?
What is after-tax salvage value of equipment : What is the after-tax salvage value of the equipment? What is the initial investment in Net Working Capital?
What is the speculative premium on the warrant : Preston Toy Co. has warrants outstanding that allow the holder to purchase a share of stock for $12 (exercise price). The common stock is currently selling.
Calculate brad gross profit for the period : At the start of the period, his inventory was £38,300 and at the end of the period his inventory was £40,400. Calculate Brad's gross profit for the period

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