What is the cost of capital for the project

Assignment Help Financial Management

Reference no: EM132014409

1. Gomi Waste Disposal is evaluating a project that would last for 4 years. The project’s cost of capital is 5.4 percent; its NPV is -4,235 dollars; and the expected cash flows are -47,400 dollars at time 0, 21,410 dollars in 1 year, -30,810 dollars in 2 years, and X in 4 years. What is X?

2. Oxygen Optimization is considering a project that is expected to cost 6,446 dollars today; produce a cash flow of 13,387 dollars in 7 years, and have an NPV of 260 dollars. What is the cost of capital for the project? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM132014409

Questions Cloud

What is effective annual rate of return : What is its effective annual rate of return?

What is its effective annual rate of return : What is its nominal annual rate of return? What is its effective annual rate of return?

What is the net present value of the project : The project’s internal rate of return is 16.81 percent and its cost of capital is 14.81 percent. What is the net present value (NPV) of the project?

Under the purchase accounting method : Under the purchase accounting method, Which one of the following is a source of cash?

What is the cost of capital for the project : What is the cost of capital for the project?

What is the net present value of project : What is the net present value (NPV) of the project?

What is the net present value of project : The cost of capital of the project is 5.27 percent. What is the net present value of the project?

Complete the furnace problem to support your response : Do you think she should consider a new furnace now? Complete the furnace problem to support your response.

What is the stock price per share immediately : What is the stock price per share immediately after issuing the debt but prior to the repurchase?

User Account

All Pages