What is the net present value of a project

Assignment Help Finance Basics
Reference no: EM13267012

What is the net present value of a project that has an initial cost of $40,000 and produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent?

A.

$798.48

B.

$1,240.23

C.

$1,869.69

D.

$2,111.41

E.

$2,470.01

 

 

Reference no: EM13267012

Questions Cloud

How are sales & loans used as lifetime tranfer tools : How are sales & loans used as lifetime tranfer tools in estate planning? What are the reasons/advantages and threats/disadvantes of using these tools?
What are the gifting tools used to gift to minors : Plese explain the process of gifting in estate planning. More specifically, what are the gifting tools used to gift to minors and what are the advantages/disadvantages of each?
Explain what is the maximum mass of solid ba3(po4)2 : 500.0 mL of 0.160M solution of H3PO4 is combined with a 300.0 mL of a 0.245M solution of Ba(OH)2. What is the maximum mass of solid Ba3(PO4)2 that can be collected
Find the speed of the water that leaves the hose : A Garden hose with a cross sectional area of 3.2x10^-4 m^2 is used to fill up a bucket with a volume of 6.5x10^-2 m^3 in 25 seconds
What is the net present value of a project : What is the net present value of a project that has an initial cost of $40,000 and produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent?
What transmit power is requires at the earth station antenna : When communicating with a geostationery satellite from earth,the distance between transmitter and receiver is approximately 35000km.assume that the friis law for free space loss is applicable and the stations have parabolic antennas
Find the value of a two period abc american call : The price of ABC stock is binomially distributed, either moving up 30%, or down 20%, each period. Assume there are no dividends. The current stock price is $100/shr, and the risk-free rate is 5% per period.
Explain what is the nucleophilic site : Which is the electrophilic site in the following compounds. A. CH3Cl B.H3C-O-CH3 with two lone pairs around O C. BH3. What is the nucleophilic site in each of the following molecules.
Create a circuit to connect the two video sources and switch : A switch with a single-bit output chooses which of the two 8-bit streams will be passed on a display's single 8-bit input. Create a circuit to connect the two video sources, the switch, and the display. Use at least one mux(a single mux or an N-bi..

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine stock value

Garrett Corporation has been going through a difficult financial period. Over the past three year, its stock price has dropped from $50 to $18 per share. Throughout this downturn, Garrett has managed to pay a $1 dividend every year.

  Concept of economic risk

How do you describe the concept of economic risk in context of global business?

  What is the value of this firms stock to an investor

What is the value of this firm's stock to an investor who requires a 14 percent rate of return?

  Business question-organizational structure

Differentiate between the organizational structures of various types of health care organizations. Describe the relationship between organizational structure and health care delivery, particularly as it relates to services and management.

  What are the after-tax cash flows for the company

Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000, and that it has a 30 percent tax bracket. What are the after-tax cash flows for the company?

  Computing present value

Suppose that you would like to purchase one hundred shares of preferred stock that pays an annual dividend of $6 per share. You have limited resources now, so you cannot afford buying price.

  Calculate the debt to total assets ratio

The following information were taken from the 2004 and 2003 financial statements of American Eagle Outfitters.

  Find the true statements on given situation

Grandma's Applesauce, Corporation has a .60 probility of a good year with operating cash flow of $50,000; & 0.40 probability of bad year with operating cash flow of $30,000.

  Change in the nature of the chicken contracts

What happened that changed the nature of the chicken contracts.

  What will your monthly payments be

You want to buy a new sports coupe for $75,000, and the finance office at the dealership has quoted you a loan with an APR of 7.4 percent for 60 months to buy the car.

  What is the net present value of this cash flow stream

If you receive $1,177 at the end of each year for the first three years and $4,724 at the end of each year for the next three years. What is the net present value of this cash flow stream? Assume interest rate is 4.3%.

  What is the cost of existing common stock

Sun Electric is expected to pay a dividend of $2.85 per share over the next year, and the stock is currently selling for $35 a share. If dividends are expected to grow at 3.5 percent a year, what is the cost of existing common stock?

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