User Account

All Pages

What is the net present value of expansion

Assignment Help Finance Basics
Reference no: EM131628184

Daisy's Donuts is expanding its operations. This expansion requires $59,000 in new fixed assets, which are expected to be worthless at the end of the project. Daisy expects operating cash flows of $16,000 per year for 4 years as a result of the expansion. In addition, the project requires $4,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 8.5 percent?

  • -$7,704
  • -$3,808
  • $7,989
  • $14,903
  • $18,477

Reference no: EM131628184

Questions Cloud

Construct a persuasive speech aimed at changing the behavior : The purpose of the Team Learning Project is to construct a persuasive speech aimed at changing the beliefs, attitudes, or behaviors of your fellow students.
Contributing factors of the us debt : What are the contributing factors of the U.S. Debt? How could we deal with this problem?
Total percentage return on investment : The company pays an annual dividend of $0.12 per share. Today, you sold all of your shares for $13.90 a share. What is your total percentage return?
Examine the concept of health care ethics : Examine the concept of health care ethics, and ascertain the fundamental way in which such concepts apply to procreation-related issues.
What is the net present value of expansion : What is the net present value of this expansion project at a required rate of return of 8.5 percent?
Which primary value does weed chevrolet probably prefer : Which primary value does the courts decision show it prefers Which primary value does Weed Chevrolet probably prefer
What is the unit depreciation on the car : A pizza delivery car was purchased for $19,580. The car is expected to be driven 125,000 miles before being sold for $500.
Would you want cbm as your client : If you were a bank manager, would you want CBM as your client? Why or why not?
Create a project plan with logical relationships components : Create a project plan with the following components. Upload on MS Word document as the project plan. Budget: Embed MS Excel into the Word document.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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