User Account

All Pages

What is the effect on the npv of the project

Assignment Help Accounting Basics
Reference no: EM133151397

Question - A project requires an increase in inventories, accounts payable, and accounts receivable of $115,000, $50,000, and $35,000, respectively. If opportunity cost of capital is 4% and the project has a life of 20 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?

Reference no: EM133151397

Questions Cloud

What amount did botkins record the investment in volkerson : Assume that Botkins acquired Volkerson on January 1 2017 and that Volkerson maintains separate corporate existence. At what amount did Botkins record investment
About some organization liability accounting issue : Look around the financial press or the internet for a recent (a year or so) story about some organization's liability accounting issue.
Discuss the ethical challenges in budgeting : Question - Budgeting lies at the foundation of every financial plan. Discuss the ethical challenges in budgeting
Servant leadership exist without spiritual-moral dimensions : Can servant leadership exist without spiritual and moral dimensions? Explain your response and include citations that support your rationale.
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
Discuss differences in light of cost and value : 1. Is the growth in health care costs a real concern for the United States? Why or why not?
Would business taxes make borrowing better or worse : Therefore, investors in business prefer debt. Would business taxes make borrowing better or worse for investors
What is the usefulness of convexity : What is the usefulness of convexity when duration is available as a measure of interest rate risk? What is the practical implication for the three-year loan
Components of moral action : "4 Components of Moral Action" and give a detailed explanation why it is important and how it is used in business. ex) Component 1: Moral Sensitivity (Recogniti

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd