What is the net present value of the investment

Assignment Help Accounting Basics
Reference no: EM133069551

Question - You are offered an investment with returns of $2,297 in year 1, $4,592 in year 2, and $4,081 in year 3. The investment will cost you $ 6,534 today. If the appropriate Cost of Capital (quoted interest rate) is 7.1 %, what is the Net present Value of the investment?

Reference no: EM133069551

Questions Cloud

Current or previous employment : Think of some challenges you have faced in your current or previous employment.
Difference between market return and risk-free rate : 1.) You can creat e a riskless two-stock portfolio if you have two stocks that are perfectly negatively correlated. true or false
How much must the client put up as margin : A client wishes to sell short 500 shares of listed FED Company Ltd. (eligible for reduced margin) at its current market price of $15. How much must client put
What are goals of business : What are the goals of a business? Do all businesses share the same goal? Provide rationale and justify your response.
What is the net present value of the investment : The investment will cost you $ 6,534 today. If the appropriate Cost of Capital (quoted interest rate) is 7.1 %, what is the Net present Value of the investment
What amount should be recorded : If the bond is cenverted into common stock, what amount should be recorded as additional paid-in capital in excess of par
6-month british interest rate : You are working on the trading desk at an investment bank. You have the following prices available to you:
How much must the stock rise : Lisa Lasher buys 350 shares of stock un margin at $22 per share. If the margin requirement is 30 percent, how much must the stock rise
Find the present value of an annuity : For an interest rate of 4% compounded monthly, find the present value of an annuity of $150 at the end of each month for eight months and $175 thereafter at the

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the net income or loss to be reported

Under IFRS 15, what is the net income/(loss) to be reported by the company for the years ended December 31, 2017 and 2018

  Show the allocation of dividends to each class of stock

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative

  Explain what is correct closing entry for expense accounts

The Retained Earnings account has credit balance of $40,000 before closing entries are made. Explain what is the correct closing entry for the expense accounts?

  What kind of questions will have For the ECG technician

What kind of behavior do you expect from the healthcare workers assisting you? What kind of behavior would help to put at ease?

  When a credit customer returns merchandise to the seller

when a credit customer returns merchandise to the seller under a perpetual inventory system the seller would debit

  complete manual trial calculation of the IRR

You must provide one complete manual trial calculation of the IRR to demonstrate that you understand the process. Also provide an explanation of this opportunity cost. Failure to follow this instruction will attract a mark of zero

  Calculate the price charged to the customer for job

Betty DeRose, Inc. employs a job order costing system and Calculate the price charged to the customer for Job #231. Do not use decimals in your answer

  Compute the adjusted balance on December

Merchandise billed at 5,000 is in transit on December 31, from the home office to the branch. Compute the adjusted balance on December

  Determine the compensation expense for year two

On January 1, Year 1, Salt Lake Corporation grants share appreciation rights to its CEO. Determine the compensation expense for Year 2.

  Prepare a balance sheet for the governmental fund

The state government established a capital project fund in 2011 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales.

  Weighted-average method of process costing

Prepare a production cost worksheet with supporting schedules using the weighted-average method of process costing

  What amount should EF report as rental income

EF uses PAS 17 in accounting for its lease transactions. In its December 31, 2019 income statement, what amount should EF report as rental income

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