User Account

All Pages

What is the net present value of project

Assignment Help Finance Basics
Reference no: EM132000367

A manufacturing company is purchasing a production facility at a cost of $8.9 million. The company expects the project to generate annual cash flows of $4.8 million over the next 4 years. Its cost of capital is 9.3 percent. What is the net present value of this project? (in millions dollars to three decimals)

a. $6.549

b. $3.186

c. $9.626

d. $75.800

Reference no: EM132000367

Questions Cloud

What is the required rate of return on the bond : You bought a 30 year treasury bond that was issued two years ago. The face value is 500$ and sells at 106.50$. What is the required rate of return on the bond?
Calculate the payback and the net present value for project : A mfg company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500 each year thereafter.
Expected changes in spontaneous liabilities : You must estimate the change in financing needs and match this change with the expected changes in spontaneous liabilities, retained earnings, and other sources
Determine what is the value of the stock today : Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
What is the net present value of project : The company expects the project to generate annual cash flows of $4.8 million over the next 4 years. Its cost of capital is 9.3 percent.
What is the company cost of capital : A company is 41% financed by risk-free debt. What is the company cost of capital? What is the after-tax WACC,
What is the weight of the common stock : Michael's Lawn Service has 2,000 bonds outstanding. These bonds are selling for $800 each. His company also has 1,500 shares of preferred stock with a market.
Mean in the title of the balance sheet : Explain why the income statement can also be called a "profit-and-loss statement."
What is the stock price of fairfax pizza expected to be : Middlefield Motors stock is expected to be priced at 63.4 dollars in 1 year. It is expected to pay its next dividend, which is expected to be 2.16 dollars.

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