What is the net present value of project

Assignment Help Financial Management

Reference no: EM132056577

RTO Co is considering a new inventory system that will cost $450,000. The system is expected to generate positive cash flows over the next 4 years in the amounts of $250,000 in year one, $125,000 in year two, $110,00 in year three and $80,000 in year four. RTO's required rate of return is 10%. What is the net present value of this project?

Reference no: EM132056577

Questions Cloud

Machines compared to other retail mechanism : Explain why Tokyo (and Japan) has so many vending machines compared to other retail mechanism, such as corner convenience store or newsstand.

Discuss about the role of the nonprofit sector : What do you believe the role of the nonprofit sector is in American society today? If you think this is an appropriate role, why? If you disagree.

Present cost of future consumption : "A higher interest rate raises the future cost of present consumption." Use an example to show that both statements are correct.

What is the equilibrium price and equilibrium quantity : a. What is the equilibrium price and equilibrium quantity? b. What is the price elasticity of demand at the equilibrium?

What is the net present value of project : RTO's required rate of return is 10%. What is the net present value of this project?

Prepare any necessary adjusting entries at december : Prepare any necessary adjusting entries at December 31, 2015, for Maxum Company's year-end financial statements

Define income transfers : Define income transfers. How should traditional income transfers eliminate incidence of poverty? Does it work? Explain.

After-tax cash flows-payback periods-net present values : After-tax cash flows. Payback periods. Net present values. Profitability index. What recommendation would you make regarding the projects?

Simple payback period for an engineering project : What is the simple payback period for an engineering project that requires $12,000 initial investment

User Account

All Pages