What is net present value of the project

Assignment Help Financial Management

Reference no: EM131531826

Watson, Inc., is an all-equity firm. The cost of the company's equity is currently 12 percent, and the risk-free rate is 3.8 percent. The company is currently considering a project that will cost $11.49 million and last six years. The project will generate revenues minus expenses each year in the amount of $3.23 million.

If the company has a tax rate of 35 percent, what is the net present value of the project? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net present value

Reference no: EM131531826

Questions Cloud

Explain what is responsibility of the organizations board : What is the responsibility of the organization's board when a leader is acting in an unethical manner but the company is profitable?

How she intends to proceed with her empirical work : Brenda is carrying out empirical work as part of a postgraduate thesis on attitudes to stress in the workplace. She is currently a full-time student.

How we can avoid ethical problems : Anne is a second year Business Studies student at her local University. As part of a Marketing module she is required to undertake a piece of market research.

Significant issue locate the arguments : Identify purposes and claims of each author locate their arguments in a rhetorical situation, and analyze the appeals each writer makes to support argument

What is net present value of the project : Watson, Inc., is an all-equity firm. The cost of the company's equity is currently 12 percent, what is the net present value of the project?

Discuss at least two opportunities that will utilize skills : Discuss at least two opportunities that will utilize the skills of professional writing and communication within your career.

Interesting facts about scotiabank : Can anyone tell me the two interesting facts about Starbucks and also the other two interesting facts about Scotiabank?

Model of desired hardware devices : List the make and model of desired hardware devices and their cost. List software operating systems and applications for each device and their costs.

Using adjusted present value method : Using the adjusted present value method. calculate the APV of the project.

User Account

All Pages