What is the effect on the npv of the project

Assignment Help Finance Basics
Reference no: EM132694483

A project requires an increase in inventories, accounts payable, and accounts receivable of $100,000, $100,000, and $45,000, respectively. If opportunity cost of capital is 11% and the project has a life of 13 years, and the working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places.

Reference no: EM132694483

Questions Cloud

What criteria does organization consider : What criteria should be used when considering where to place a facility? What criteria does your organization consider when deciding the location
Significant impact on businesses and industries : We have viewed how Blockchain has made a significant impact on businesses and industries.
Journalize the transactions of Trapper Jon Productions : Journalize the following transactions of Trapper Jon's Productions: June 23. Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account
Journalize the revenue transaction : Grant Film Productions, Journalize the revenue transaction and indicate how recording this revenue in December would affect the current ratio.
What is the effect on the npv of the project : A project requires an increase in inventories, accounts payable, and accounts receivable of $100,000, $100,000, and $45,000, respectively.
What accommodations was keith requesting : What accommodations was Keith requesting? Was it reasonable? Support your opinion with an argument based on the course concepts and existing legal evidence.
Focus on globalization concepts : We focus on globalization concepts. Please explain the concept of globalization and the role information technology has in the global market.
Journalize the entries to record the transactions : Dec. 31. Recorded an adjusting entry for accrued interest on the note of December 3. Journalize the entries to record the transactions
What are the purposes for margin purchase : What are the purposes for margin purchase and short sale respectively? Discuss their risk in comparison with other normal trading.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the weighted average cost of capital

The tax rate is 34 percent. What is the weighted average cost of capital for the firm?

  He feels that this is an indication that the company is

roberto perez is puzzled. his company had a profit margin of 10 in 2014. he feels that this is an indication that the

  Why would investor use a multiphase dividend discount model

If a company's dividends are expected to decline, is it possible to still use the constant growth dividend discount model? What is the relation between the expected return on a stock and the stock's dividend yield?

  What is the price of the stock today

Upper Gullies Corp. just paid a dividend of $2.20 per share. The dividends are expected to grow at 22 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 14 percent, what is..

  What are three major decision area involving cash management

How would an increase in short-term interest rates affect a firm under the conservative, maturity-matching, and aggressive approaches to managing working.

  What is the operating income for both firms

Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest) and $5,000 in equity. What is the operating income (EBIT) for both f..

  The whole food nutrition center uses grains to blend a

the whole food nutrition center uses grains to blend a natural cereal that it sells by the pound. the cereal has to

  Watch the video mark zuckerberg on team dynamics

Express whether you agree with Mark Zuckerberg's opinion on managing team dynamics.

  What is the beta of portfolio

You invest a portfolio 35% of your capital funds in a large-cap equity fund with a beta of 1.13, 20% in a small-cap equity fund with a beta of 1.62,

  What is the relationship between reliability and validity

What is the relationship between reliability and validity? How can a test be reliable but not valid? Can a test be valid but not reliable? Why or why not?

  What is the expected net income

ABC expects sales of $21,234,000 this year. The cost of goods sold is expected to be $11,447,000 while selling, general and administrative (SGA) expenses.

  What is meant by systematic risk factors what is the

a what is meant by systematic risk factors?b what is the difference between term structure and non-term structure risk

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