What is the net present value of the investment

Assignment Help Finance Basics
Reference no: EM132033255

You are offered an investment with returns of $ 1,896 in year 1, $ 4,880 in year 2, and $ 3,029 in year 3. The investment will cost you $ 6,255 today. If the appropriate Cost of Capital is 10.3 %, what is the Net present Value of the investment?

Reference no: EM132033255

Questions Cloud

What is the yield to maturity of this bond : The bond has a coupon rate of 6.3 percent paid annually and matures in 19 years. What is the yield to maturity of this bond
How much do you need to put aside each month : How much do you need to put aside each month, assuming that your savings account earns monthly interest rate at the rate of 1% per month?
Processes the check in the normal manner : Ocean Research of San Diego, California, just received a check in the amount of $800,000 from a customer in Bangor, Maine.
What is the adjusted present value of this project : The corporate tax rate is 40 percent. The required rate of return for the project under all-equity financing is 14 percent.
What is the net present value of the investment : The investment will cost you $ 6,255 today. If the appropriate Cost of Capital is 10.3 %, what is the Net present Value of the investment?
Rate of return does the investor expect : Which rate of return does the investor expect to receive on this stock if the stock is purchased today? Please assist.
How much will one share of stock be : If the required rate of return is 11.47 percent, how much will one share of stock be. Please assist.
What is the standard deviation of returns : What is the standard deviation of those returns this is only a SAMPLE of historical performance and not the population?
Uneven cash flow investment costs : You are considering two alternate investments. The perpetuity, which costs $600,000, pays an equivalent salary of $60,000 per year, in perpetuity

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the role par value play in the pricing

If a stock is incorrectly price by $0.05 and it costs $.25 to exploit the opportunity, is this market inefficient? Determine what makes the market efficient or inefficient. Determine the role par value play in the pricing and sale of common stock b..

  Create an offsetting dampening effect on potential buyers

Why don't expectations of higher capital gains taxes create an offsetting dampening effect on potential buyers?

  What is the most that jelena should pay for made-it stock

She has determined that the Made-It's Beta is 2; that the risk-free rate is 1%, and that the S&P 500 is projected to grow at 10%.

  Accumulate the down payment

At a 6% rate of return, how much do you need to save each year to accumulate the down payment? If you need 25%, and the rate of return is 5%, how much do you need to save each year?

  What is the present worth of the profit

A person decides to invest part of her salary for her retirement. She starts working at the beginning of the year (Jan 1st) that she becomes age 23.

  Which company appears most efficient in collecting cash

Below are amounts (in millions) from three companies' annual reports.

  Knowledge representation and organization

Memory models and processes including knowledge representation and organization

  Total fixed costs are 5000 per year this offer doesnt

progo plans to sell 1200 carriers next year and has budgeted sales of 48000 and profits of 20000. variable costs are

  Eplain why expectations of feds increase in money supply

Assuming no threat of inflation, how would bond prices be affected by this expectation? - Assuming that inflation may result, how would bond prices be affected?

  Explain why is monetary amount of each fair share different

Why is the monetary amount of each fair share different? How much money is owed to each of the two people who do not "win" the collection offrogs? In your opinion how "Fair" is the process described above?

  What would be the approximate expected price of a stock

What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years, then grow at a constant rate of 5%, if the stock's required return is 13% and next year's dividend will be $4.00? Please show yo..

  A firm expects to generate net income of 600 million 550

a firm expects to generate net income of 600 million 550 million and 500 million at the end of each of the next three

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