User Account

All Pages

What is the net present value of the investment

Assignment Help Finance Basics
Reference no: EM132083431

The total initial investment (purchase, modification and investment in net operating working capital) will be $6,000.

The machine will result in operating cash flow of $2,400 per year for three years.

When the machine is sold at time period three the net sale price will be $1800. The firm will also recover the investment in net working capital of $609.

What is the net present value of the investment if the required return is 12%?

Reference no: EM132083431

Questions Cloud

Prepare a statement of cash flows : Prepare a Statement of Cash Flows - The net wage checks were given immediately to employees. The payroll taxes will be paid to the IRS and state
What is the operating cash flow associated : What is the operating cash flow associated with the first year of operation?
What are the total cash flows in year three : What are the total cash flows in year three when the asset is sold?
Prepare the journal entries for umet company : Prepare the journal entries for UMET Company to record the restructuring on April 2, 2016, and the payment of interest on April 1, 2017
What is the net present value of the investment : What is the net present value of the investment if the required return is 12%?
Should participants prepare ahead of time : You are a new project manager working on a large project that has completed requirements gathering and is in the middle of the design stage of the SDLC.
What is the annualized holding period return : A stock is expected to pay the following dividends over the next three years: $2.00, $2.10, $2.15.
What is the tax savings : What is the tax savings ( that is, the depreciation tax shield) associated with the new facility in the coming year
Is she the right person to start the conversation : If "yes," how should she proceed? Is she the right person to start the conversation? Who should she have the conversation with?

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