What is project npv using a discount rate of eight percent

Assignment Help Financial Accounting
Reference no: EM132943573

Ron's makers of swizzle? sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of ?$105,000 and will generate net cash inflows of ?$17,000 per year for 11 years.

Problem a. What is the? project's NPV using a discount rate of 8 percent??

Problem b. What is the? project's NPV using a discount rate of 17 ?percent?

Problem c. What is this? project's internal rate of? return?

Reference no: EM132943573

Questions Cloud

Calculate shakib expected risk and return : The index fund has a return of 16% and a standard deviation of 30%. Calculate Shakib's expected risk and return if he opts for the above portfolio selection?
What would be the annual operating cash flow : What would be the annual operating cash flow? Table Manufacturers Ltd is contemplating making and selling small and large tables.
What is the project equivalent annual cost in dollars : A five-year project requires installing a machine with an initial fixed asset investment. What is the project's equivalent annual cost (EAC) in dollars?
What must the annual payment be : Question - You have just applied for a 30-year $100,000 mortgage at a rate of 10%. What must the annual payment be
What is project npv using a discount rate of eight percent : What is the? project's NPV using a discount rate of 8 percent?? Ron's makers of swizzle? sticks, is considering the purchase of a new plastic stamping machine.
Determine the interest rate earned : Question - Determine the interest rate earned on a $2,250 deposit when $2,550 is paid back in one year
Find the amount of overhead applied in the customizing : Find the amount of overhead applied in the Customizing Department to Job T138 is closest to? Mahon Corporation has two production departments, Casting.
What is the present value : Question - What is the present value of a $820 annuity payment over five years if interest rates are 9 percent
How much would be the amount of property dividends : Bravo, Inc has 100,000 shares issued and outstanding. How much would be the amount of property dividends that would be distributed by alpha on Aug. 5

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the beta portfolio for john invested

Calculate the beta portfolio. Round the answers to two decimal places. John invested the following amounts in three stocks.Stock A

  Find what must the interest rate be

Deposits grow at a rate of 5 percent each year for another 5 years. The goal is to save $2500 at the end of 8 years. What must the interest rate be?

  Analysis of the profitability of individual products

The material-handling costs allocated to one lens would be what amount and the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling activity is the number of material moves.

  What is the effective annual interest rate on the loan

If you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, what is the APR of the loan? What is the effective annual interest rate on the loan?

  What is the difference in before-tax income

At the beginning of 2014, the Healthy Life Food Company purchased equipment for $42 million to be used in the manufacture of a new line of gourmet frozen foods. The equipment was estimated to have a 10-year service life and no residual value. What is..

  Calculate lisa opportunity cost of ironing clothes

Consider two individuals-Lisa and Mitch, Calculate Lisa's opportunity cost of ironing clothes and washing clothes. Who has the comparative advantage in ironing?

  Discuss how an operating lease would be accounted

Discuss how an operating lease would be accounted for by the lessee both at the inception of the lease and during the first year of the lease, assuming the lessee makes equal monthly payments at the beginning of each month of the lease. Describe t..

  What is capitalized cost of the equipment

The present value of an ordinary annuity factor for three years at 8% is 2.58, and the present value for the future amount of a single sum of one dollar for three years at 8% is .735. Shipping charges for the equipment were $2,000, and installati..

  What is the relevant initial investment cost to use of apple

Apple Inc. It uses the flow-to-equity approach, what is the relevant initial investment cost to use in determining the value of the project?

  Calculate the break -even point for the year 2007

Calculate the break -even point for the year 2007, calculate the break -even point under each alternative course of action above.

  Compute the adjusted basis of each members interest

LeBron, Dennis, and Susan formed the Bar T LLC at the beginning of the current year. LeBron and Dennis each contributed $200,000 and Susan transferred several acres of agricultural land she had purchased two years earlier to the LLC. The land had a t..

  Prepare the journal entry to record the impairment

Prepare the journal entry to record the impairment at December 31, 2010 and prepare any journal entries for the equipment at December 31, 2011.

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