User Account

All Pages

What is the net present value of the project

Assignment Help Finance Basics
Reference no: EM132455654

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net aftertax salvage value is estimated at $11,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 12 percent?

Reference no: EM132455654

Questions Cloud

Estimated property value and land value : What would the estimated property value and land value be under the above assumptions?
What is the market price per bond : The bonds mature in 8 years. What is the market price per bond if the face value is $1,000?
Analyzing the proposed project : When analyzing the proposed project, the $1,200 should be treated as which type of cost?
What are the relevant cash flows-healthy potions : What are the relevant cash flows? How do they change if the market price of the machine is $600,000 instead?
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 market rate of return on stock : Auto Deliveries has established a pattern of increasing its dividends by 4.8 percent annually and expects to continue doing so.
Assignment Activity - The Phases of Venus : Assignment Activity - The Phases of Venus. Part I: Venus in the Ptolemaic Model. Is there any location along the epicycle at which Venus would appear
How should we as a society deal with these concerns : Review the material under Resources in the Water section above to get the background for this topic and Describe your reaction to these articles and material
What is the projected amount of fixed costs : The selling price is $28 a unit, the variable cost per unit is $13, and depreciation is $14,000. What is the projected amount of fixed costs?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the difference between intrinsic value and market

What is the difference between intrinsic value and market value?

  Determine the impairment loss

ACC514 - Financial Accounting - Charles Sturt University - Determine the impairment loss to be recognised by Foodie Ltd for each of its cash generating

  What would the amount of the earlywithdrawl

A certificate of deposit will result in a penalty for withdrawing funds before the maturity date. f the penalty involves two months of interest what would the amount of the earlywithdrawl on a 20,000 6% CD.

  What key cost tradeoffs would be involved

What key cost tradeoffs would be involved when making this stretching decision? How would you quantitatively model this decision?

  Describe contribution margin and the break-even point

How variance analysis can be applied to flexible and static budgets. Why forecasts are typically determined using sensitivity analysis. Describe contribution margin and the break-even point using the contribution margin method.

  Customary evaluations and interpretations

In cross-cultural interactions, why are your customary evaluations and interpretations more likely to be off base? Explain.

  Daily closings for the dow jones industrial average

Please show how you got to this answer. Assume the following daily closings for the Dow Jones Industrial Average:

  What agency problems do you see in the given arrangement

Your friend Dave wants to open an ice cream stand. He knows the business, and you know him to be honest and generally hard working.

  What voting procedures would you recommend for christiania

The Free City of Christiania is a community of about 800 adults and 250 children within the city of Copenhagen. It was set up by "hippies and others".

  Performance appraisals are often described

Performance appraisals are often described as necessary but not really objective. What are your thoughts?

  What is the present value of the additional costs

You own forest land in California. You estimate that California's forest practice regulations will impact you financially in the following ways.

  Yield-to-maturity approach to bond pricing

Assume that the yield-to-maturity approach to bond pricing is appropriate. What is the intrinsic value of the bond right now?

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