What is the future worth of the investment

Assignment Help Econometrics

Reference no: EM13224996

Boilermaker Brew Plc. and Hoosier Brewing Co. plan to combine their U.S. operations in an attempt to bolster their sagging sales in a tough domestic market. The two companies will form a new unit called HoosierMaker. The companies expect to invest $120 million upfront to set up the new unit. HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?

Reference no: EM13224996

Questions Cloud

What is the equivilent annual cost for keeping the computer : The local computer shop will sell her a new system for $4000, inlcluding the new graphic software that she wanted, although, she can cope with the software that she currently owns. Her own comptuer will last 2 more years, and will then have a salv..

State a titration is performed by adding koh : A titration is performed by adding 0.400 M KOH to 40.0 mL of 0.300 M HCl. What is the pH after addition of 20.0 mL of the base

What is the expected npv for the new machine : R&D planning. A firm is in the process of assessing the economic prospects for a new bottling machine it is developing. Future research and development expenses could range from $4 to $9 million, with a most likley value around 7$ million.

Overall effectiveness of a companys supply chain : Overall effectiveness of a companys supply chain - optimize the delivery of goods, services, and information from supplier to customer, balancing supply and demand

What is the future worth of the investment : The companies expect to invest $120 million upfront to set up the new unit. HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment..

Explain what is the ph after addition of the base : A titration is performed by adding 0.400 M KOH to 40.0 mL of 0.300 M HCl. What is the pH after addition of 5.0 mL of the base?

How to bring the economy back to full-unemployment : The unemployment rate is the US fluctuated around 6% in 2002-2003 . Assume the full- unemployment rate is 5% What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment What did the Fed actually do

Explain a brick consisting of pure metal measures : A brick consisting of pure metal measures 4.00 inches x 5.00 inches x 3.00 inches and weighs 7.020 kg. Using density, identify the metal in the brick.

Explain the shapes of your indifference and isoprofit curves : Use indifference curves and isoprofits for wages and job risk to present one possible reason for this difference in annual salaries. You must explain the shapes of your indifference curves and isoprofit curves to receive full credit.

User Account

All Pages