What is the net present value of project

Assignment Help Financial Management

Reference no: EM131986161

Watson, Inc., is an all-equity firm. The cost of the company’s equity is currently 13 percent, and the risk-free rate is 4.3 percent. The company is currently considering a project that will cost $11.64 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.28 million. If the company has a tax rate of 35 percent, what is the net present value of the project?

Reference no: EM131986161

Questions Cloud

Multiple choices of commercial healthcare plans : Today patients have multiple choices of commercial healthcare plans. For your initial post, choose a commercial health insurance plan and state

Was gerry negligent when he hit the golf ball : Was Gerry negligent when he hit the golf ball that injured Patty? Discuss the elements of negligence and use facts from the scenario to support your decision.

What are the ethical and legal issues in cases : What are the ethical and legal issues in these cases? Are they different? What is the duty of the physician and the public health nurse

Write a program that prompts the user for amount of change : Write a program that prompts the user for the amount of change that should be dispensed to a customer (in cents).

What is the net present value of project : If the company has a tax rate of 35 percent, what is the net present value of the project?

Changes in the variable cost per unit projection : In dollar terms, what is the sensitivity of OCF to changes in the variable cost per unit projection?

Define the information security governance and management : Information security management and governance are not simply implemented tasks within organizations.

Make a simple buddy buffer manager with four functions : Make a simple buddy buffer manager with 4 functions for an operating system. Using C/C++ programming language.

What kind of information will a pareto chart tool provide : What kind of information will a pareto chart tool provide? Under what conditions is this tool most applicable in healthcare?

User Account

All Pages