What is the net present value of a project-cash flows

Assignment Help Financial Management
Reference no: EM13913144

What is the net present value of a project if the required rate of return is 12 percent? The cash flows, in order, are -$42,398 (initial cost), $13,407 (year 1 CF), $21,219 (year 2 CF) and $17,800 (year 3 CF).

A) -$1,574.41

B) -$1,208.19

C) -$842.12

D) $729.09

E) $1,311.16

Reference no: EM13913144

Questions Cloud

Magnitude of the initial velocity of the ball : Suppose the water is drained from the lake. The ball is now thrown from the diving board so that it again reaches the bottom in 4.88 s. What is the magnitude of the initial velocity of the ball?
Money will be saved for retirement : Waldo expects to receive the following payments: year 1 = $50,000; year 2 = $28,000; year 3 = $12,000. All of this money will be saved for his retirement. If he can earn an average annual return of 10.5 percent, how much will he have in his account 2..
Manufacturer gaining by the release of the new keyboard : A manufacturer of peripheral devices for PCs decides to try and capture some of the PC gaming market by creating gaming versions of its traditional peripheral devices. What option is the manufacturer gaining by the release of the new keyboard?
Identify the three sites you chose : Visit one B2C, one B2B, and one nonprofit website. Examine each carefully and in 1-2 pages: Identify the three sites you chose. Identify all the relationship building techniques you found on each site
What is the net present value of a project-cash flows : What is the net present value of a project if the required rate of return is 12 percent? The cash flows, in order, are -$42,398 (initial cost), $13,407 (year 1 CF), $21,219 (year 2 CF) and $17,800 (year 3 CF).
Which duty do you believe is higher : Which duty do you believe is higher, the duty of corporations to pay tax to government or the duty of corporations to pay dividends to shareholders? Why?
Speed for the remainder : A certain sprinter has a top speed of 10.6 m/s. If the sprinter starts from rest and accelerates at a constant rate, he is able to reach his top speed in a distance of 10.1 m. He is then able to maintain his top speed for the remainder of a 100 m ..
Find the component costs for bonds and preferred stock : There are 2,000 bonds outstanding at a market price of $1090 per bond. The bonds mature in 17 years and have a coupon payment of $70 on the $1,000 face value of the bond.  Find the 3 weights to be used to determine the cost of capital (Debt, Preferre..

Reviews

Write a Review

Financial Management Questions & Answers

  Cash for each level of desired dividend income level

Creating own dividend policy. Erik owns 2,000,000 shares of Wiseguy Entertainment. Wiseguy just declared a cash dividend of $0.05 per share. The stock is currently selling for $5.00. If Erik wants an annual “dividend income” of $50,000, $100,000, or ..

  Arbitrage strategy that yields a risk-less profit

Suppose the forward rate satisfies f(0, T1, T2) > [B(0,T1) / B(0,T2)] - 1. Write down, showing all details, an arbitrage strategy that yields a risk-less profit of (1 + f(0, T1, T2)) - B(0,T1) / B(0,T2) dollars.

  A firms optimal capital structure

A firm's optimal capital structure ______ Is generally a mix of 40% debt and 60% equity. Exists when the debt-equity ratio is 0.5. Is the debt-equity ratio that exists at the point where the firm's weighted after-tax cost of debt is minimized.   Is t..

  Calculate the total dollar return for this investment

Assume that one year ago, you bought 270 shares of a mutual fund for $20 per share, you received an income distribution of $0.23 cents per share and a capital gain distribution of $0.38 cents per share during the past 12 months. Calculate the total d..

  From the books of agarwal from books of aggarwal bors

from books of aggarwal bors following information has been extracted rs. sales 240000 variable costs 144000 fixed costs

  Compute the book value per share

We know the following about Bob & Co. Total assets are $1000m, E is $700m, cash is $500m and the # of shares is 1m. We estimate that the market value of equity is 2 times the book value of it. Finally, a fire sale of the firm would bring 70% of the v..

  Considering the purchase of new manufacturing facility

Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $280,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years..

  What is the approximate forward exchange rate

Assume the current U.S. dollar-British spot rate is 0.6134£/$. If the current nominal one-year interest rate in the U.S. is 2.5% and the comparable rate in Britain is 3.5%, what is the approximate forward exchange rate for 360 days?

  Corporate taxes and financial distress costs apply to firm

Assume both corporate taxes and financial distress costs apply to a firm. Given this, the tradeoff theory of capital structure illustrates that

  Determine the effect on the amount of each deduction

Mr. and Mrs. Remy have the following allowable itemized deductions this year: Medical expenses…$2,310 State and local taxes…4,019 Casualty loss…8,000 Charitable contributions…2,500 Miscellaneous itemized deductions…337 Determine the effect on the amo..

  The evening telegram states bond price

The Evening Telegram states a bond price at $97.00, while it yields is reported at 6%. If there are 7 years left to maturity on this bond, what then, is this bond's coupon? Is it $48, $50, $53, or $55?

  Initial investment strategy

Financial Analysts, Inc., is an investment firm that manages stock portfolios for a number of clients. A new client has requested that the firm handle an $800,000 portfolio. As an initial investment strategy, the client would like to restrict the por..

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