What is the net present value of the project

Assignment Help Financial Management
Reference no: EM131854345

A project will produce an operating cash flow of $1,704,000 a year for three years. The initial cash outlay for equipment will be $2,850,000. The net aftertax salvage value of $350,000 will be received at the end of the project. The project requires $109,000 of net working capital that will be fully recovered. What is the net present value of the project if the required rate of return is 12 percent?

Reference no: EM131854345

Questions Cloud

How effectively does the introduction draw you into paper : How effectively does the introduction draw you into the paper? Why? Are there any parts of the paper that could use more explanation or description?
With regard to contractual size-regard to trading location : with regard to expiration date. with regard to trading location. With regard to contractual size.
What is the speed of the plane : What is the speed (in m/s) of the plane just prior to the collision?
Formulate a talent management strategy : Formulate a talent management strategy to encompass the entire talent requirements of the organization.
What is the net present value of the project : What is the net present value of the project if the required rate of return is 12 percent?
What is the speed of the plane just prior to the collision : What is the speed (in m/s) of the plane just prior to the collision?
What would the new share price be : If Andover invests in the project, what would the new share price be? Andover's cost of capital is 10%.
What was the velocity of the bullet : The block with the bullet imbedded in it moves forward with a velocity of 1556.0. What was the velocity (speed) of the bullet immediately before it hit.
Straight-line depreciation over the project life : Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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