What is the net present value of the project

Assignment Help Finance Basics
Reference no: EM132705432

The freezers in your company's warehouse are getting old and only have two years of useful life left. As they are inefficient they generate net cash flow for the firm of only $50,000 per year. New freezers cost $500,000, but they will generate net cash flow for the firm of $150,000 per year for five years, at which point they will no longer work and will have no value. If the appropriate risk adjusted discount rate is 8% what is the net present value of the project?

Reference no: EM132705432

Questions Cloud

Explain the strengthen interpersonal relationships : In your first assignment, you conducted a research analysis of the company and proposed strategic solutions to the CEO. As you continue your consulting role.
Particularly unreceptive to addressing ethical : Why has International Relations been particularly unreceptive to addressing ethical questions? Is this changing?
Complete the Booths federal income tax return : Complete the Booths' federal income tax return for 2018 on Form 1040, Schedule 1, Schedule C, Schedule D, and Form 8949
Homeland security and international security cooperation : analyze the effectiveness and sufficiency of the treaty as it relates to homeland security and international security cooperation.
What is the net present value of the project : If the appropriate risk adjusted discount rate is 8% what is the net present value of the project?
Discuss on the implications of seven percent reserve rate : The reserve ratio is the portion of reservable, Discuss on implications of the 7% reserve rate on Saudi economy, highlighting the advantages and disadvantages.
Identify and define each lifecyle : Identify and define each Lifecyle and describe each of the controls and provide a transportation authority example for each.
Rapidly evolving international environment : Are geopolitical trends still important in today's rapidly evolving international environment?
How metrics are used in company to support use of batch size : Defend your position on batch size and tell whether Economic Order Quantity (EOQ) is relevant to your selected company/industry.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd