What is the net present value for project

Assignment Help Financial Management

Reference no: EM132057291

Suppose a company has proposed a new 4-year project. The project has an initial outlay of $27,000 and has expected cash flows of $7,000 in year 1, $9,000 in year 2, $11,000 in year 3, and $14,000 in year 4. The required rate of return is 15% for projects at this company. What is the net present value for this project? (Answer to the nearest dollar.)

Reference no: EM132057291

Questions Cloud

What is cash break-even point : Assume depreciation is calculated using stright-line down to zero salvage value. If required rate of return is 10% per year, what is the cash break-even point?

What makes some stock goes up and down so often : What makes some stock goes up and down so often? (Example LFIN)

What is the profitability index for this project : Suppose a company has proposed a new 4-year project. What is the profitability index for this project?

What does stock value really means to company : What does stock value really means to a company? What will be happened if the stock value went down for 70% one day but there wasn't any bad news?

What is the net present value for project : The required rate of return is 15% for projects at this company. What is the net present value for this project?

What is avicorp pre-tax cost of debt : Avicorp has a $ 14.2 million debt issue outstanding, with a 5.8% coupon rate. What is Avicorp's pre-tax cost of debt?

What would be fair price for this stock today : A company just paid a dividend of $1.30 per share. what would be a fair price for this stock today?

What would be fair price for this stock today : If the required rate of return is 8% per year, what would be a fair price for this stock today?

Capital can better address the gaps in venture funding : What are some of the ways that public capital can better address the gaps in venture funding? What are some examples?

User Account

All Pages