What is the effect on the npv of the project

Assignment Help Financial Accounting
Reference no: EM132944583

Problem 1: A project requires an increase in inventories, accounts payable, and accounts receivable of $145,000, $85,000, and $30,000, respectively. If opportunity cost of capital is 9% and the project has a life of 8 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: EM132944583

Questions Cloud

How much will nestle owe chappell on receipt : If Nestle receives 2,100,000 wrappers and sends out, accordingly, 700,000 CD, how much will Nestle owe Chappell, the copyright holder
Why team working might be important to corie motivation : Read the following case study and then answer the questions that follow. Applying the motivational theories Corie Jones joined Index Computers after working for
Find what is the degree of operating leverage : What is the degree of operating leverage? You estimate that your sheep farm will generate 2.5 million of profits on sales of 5.4 million
What is the expected net present value of building the plant : What is the expected net present value of building the plant? An auto plant that costs $100 million to build can produce a new line of cars.
What is the effect on the npv of the project : 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?
How much of the actual service department costs : How much of the actual service department costs would not be charged to the operating departments for this period
What will be the cash flow in each of years one to eight : If Daily's marginal tax rate is 38%, what will be the cash flow in each of years one to 8 (the cash flow will be the same each year)?
What is operating cash flow each year : What is operating cash flow each year? what is the net present value of this investment? should the company accept or reject this project?
How structure the process of product development : Explain how you will structure the process of product development?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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