What is the net present value of project-corpus co

Assignment Help Finance Basics
Reference no: EM132516255

Corpus co has a unique opportunity to invest in a two year project in Australia. The project is expected to generate 1000000 Australian dollars in the first year and 2000000 Australian dollars in the second. Corpus would initially have to invest 1500000 in the project. Corpus has determined that the cost of capital for small projects is 15 percent, interest rate in Australia is 5% per year. The project has no salvage value.

a. What is the net present value of this project if the spot rate of the Australian dollar for the two years forecasted to be $.75 and .80 respectively?

b. If the funds are blocked and that the parent company will only be able to remit them back to the us in two years how does this affect the NPV of the project?

Reference no: EM132516255

Questions Cloud

Discuss any unofficial code regarding gratuities : Discuss any unofficial code regarding gratuities. Determine from the officer the department's official policy related to gratuities,
What is the ending total asset balance and provide example : Net sales are $272300, beginning total assets are $714000, and the asset turn over is 5. What is the ending total asset balance and provide example?
What is the net present value of project : What is the net present value of this project if the spot rate of the Australian dollar for the two years forecasted to be $.75 and .80 respectively?
What is the total costs of goods manufacturered : What is the total costs of goods manufacturered? Sheridan company has beginning and ending work in process inventories of 90000
What is the net present value of project-corpus co : What is the net present value of this project if the spot rate of the Australian dollar for the two years forecasted to be $.75 and .80 respectively?
Minimum-security state facility : Discuss how you would plan your week to ensure that you get all of your important tasks accomplished. Are there areas you could ask for assistance with?
Determine amount of overhead assigned to each product line : Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.
Calculate the average of the natural log of the values : Please write a Subroutine module that loads the values in an array and calculate the average of the natural log of the values
Straight-line depreciation to a zero book value : The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35%.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd