What is the net present value of investment

Assignment Help Financial Management
Reference no: EM131559294

You are considering an investment that requires a $116,694 initial cost. You will receive $54,902 in the first year, $55,033 in the second year, and $61,790 in the third year. The required rate of return is 16%. What is the net present value of this investment given your expectations?

Reference no: EM131559294

Questions Cloud

Describe how the structure of the organization discussed : Write a summary of the article. Include the purpose for the article, how research was conducted (if any), the results, and other pertinent information.
Net present value of investment given your expectations : What is the net present value of this investment given your expectations?
What is the probability that the person is a housewife : VOTER TURNOUT BY PROFESSION The following table gives the percent of eligible voters grouped according to profession who responded with "voted" in the 2000.
Issue preferred stock with perpetual annual dividend : The Jones Company plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30.
What is the net present value of investment : What is the net present value of this investment given your expectations?
Explain the issues in terms of the ethics associated : Explain the issues in terms of the ethics associated with the Criminal Justice system and describe the ethical system that applies in this ethics violation(s).
Probability that a union member advised by a second doctor : MEDICAL DIAGNOSES A study was conducted among a certain group of union members whose health insurance policies required second opinions prior to surgery.
Strategy of market skimming and market penetration : Differentiate between a strategy of market (price) skimming and market (price) penetration.
What is the history of des and why is s-des studied : What is the history of DES, and why is s-DES studied? How does DES and 3DES work? Provide an example of each

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected net income for this year

ABC expects sales of $21,040,000 this year. Given its tax rate of 40%, what is the expected net income for ABC this year?

  Company currently has one bond issue outstanding

Company currently has one bond issue outstanding. This bond pays a coupon rate of 10% ($100 per year) and matures in five years, and has a par value of $1,000. If you require a 14% rate of return. What is the capital gain yield of this bond in the fi..

  Hedging exchange rate risk

Hedging exchange rate risk (LO21-3) You are the vice president of finance for Exploratory Resources, headquartered in Houston, Texas. In January 2010, your firm’s Canadian subsidiary obtained a six-month loan of 150,000 Canadian dollars from a bank i..

  Applicable tax law regarding employee compensation

As part of his contract at his new job, Jim is provided a company car and gas card to go back and forth to work. He sometimes uses the car for out-of-town travel approximately once a month. Explain the applicable tax law regarding employee compensati..

  Compute the current market value of bond

RentBooks.com is considering floating a bond offering and is attempting to determine what kind of interest rate they would be paying. The market price of comparable bonds is $314.64, face value of $533. The CEO of RentBooks.com, Frannie Kasper desire..

  Black-scholes to value a six-month european put option

use the Black-Scholes to value a six-month European put option with a stike price of 300.

  What is the degree of operating leverage for each

Two Companies, Oplev and Finlev, Each have sales of 100,000 unites at a $2.00 cost/unit. Oplev has Variable Cost of $1.25/unit and a Fixed Cost of $60,000.. Finley has Variable cost of $1.75/unit and a fixed cost of $10,000. What is the Degree of Ope..

  Self-directed and self-selected leadership development

Does the PepsiCo program challenge existing assumptions about what leaders should be in such a way as to empower a more self-directed and self-selected leadership development trajectory or process?

  What are the bondholders contractual claims to payment

Time Watch Co. has $79 million in earnings and is considering paying $8.90 million in interest to bondholders and $6.95 million to preferred stockholders in dividends. Use Table 17-4. What are the bondholders contractual claims to payment?

  Two sources of finance under consideration with reference

Analyse the costs of the two sources of finance under consideration with reference to; (assume all necessary details)

  In a period of heightened price volatility-what is a buyback

In a period of heightened price volatility, the beta of the market will: What is a buyback? What is a bank?

  What will happen to the banks net interest income

If a bank has 10 billion dollars of 1-year loans and 40 billion dollars of 5-year loans, which are financed by 30 billion dollars of 1-year deposits and 20 billion dollars in 5-year deposits. If interest rates increase by 1 percent every year for the..

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