What is npv if the discount rate

Assignment Help Finance Basics
Reference no: EM133110970

A project that costs $3,000 to install will provide annual cash flows of $800 for each of the next 6 years.

a. What is NPV if the discount rate is 10%?

b. How high can the discount rate be before you would reject the project?

Reference no: EM133110970

Questions Cloud

Calculate the npv using the discounted cash flow : Q1. You buy and sell mobile phones. Someone is offering you a chance to buy their used phone. They are willing to sell their used I-phone 12 to you for $ 600. T
Record the annual depreciation for the x-ray machine : The Health Department of a Hospital bought X-Ray equipment for $100,000. Record the Annual depreciation for the X-Ray machine
What type of political and legal systems do they have : What ethnicities reside in the nation, and do they form distinct subcultures and What ethical dilemmas or challenges might you encounter in the country
Describing methods to monitor the marketing measures : Create a short report describing the methods to monitor the marketing measures after the parks in the course scenario reopen.
What is npv if the discount rate : A project that costs $3,000 to install will provide annual cash flows of $800 for each of the next 6 yea
What controls are needed to reduce the risk of fraud : Mr Paul finished his accounting qualification in the early 2000s, and he joined AISL Corporation as an accountant. What controls are needed to reduce the risk
What is the equilibrium expected growth rate : Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $32.00 per share, and its require
What is the overall net oh variance : X Corp has the following data: Actual VOH is 2,600; Actual FOH is 10,000; Budgeted FOH is 3,300; What is the overall net OH variance
What is the best estimate of the current stock price : Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss how xbrl reports could be used to apply for a loan

Discuss how XBRL reports could be used to communicate with the investment community,

  Root causes of the greek predicaments

When the euro was introduced in 1999, Greece was conspicuously absent from the list of the European Union member countries adopting the common currency.

  Cost of debt micro spinoffs inc issued 20-year debt a year

cost of debt. micro spinoffs inc issued 20-year debt a year ago at par value with a coupon rate of 8 paid annually.

  Information relative to urban outfitters

The company requires a payback period no greater than five years. Listed below is selected information relative to Urban Outfitters and The Gap (GPS).

  Relationship between z-scores and percentages

What is the relationship between z-scores and percentages?

  Compute the npv statistic for project y

Compute the NPV statistic for Project Y. Explain whether or not the firm should accept or reject the project with the cash flows shown in the chart below if the

  Value of attitudinal change within marketing

Critically discuss how an understanding of perceptual processes may inform more effective marketing.

  Calculate the tax results

Calculate the tax results. What if the sales price is $60,000? Provide an explanation for the tax results.

  One of the brochures boasted ldquothree-day workshop 35000

fred recently became a manager at a local hardware store that employs six managers and 55 nonmanagement employees. as

  Find out the pbp

Consider the XYZ Project, which requires an investment of $1.5 billion initially, with subsequent cash flows of $400 million

  Cost of equity using the dividend growth method

Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40 and the dividends are expected to grow at 5 percent per year.

  What is the new npv

What is the project's year 0 net cash flow? Year 1? Year 2? Year 3? What is the new NPV?

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