What is the net present value of the project

Assignment Help Accounting Basics
Reference no: EM132706917

Problem - A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project, assuming a 10% required rate of return? (Use the present value tables in this chapter.)

A. $11,675

B. $13,375

C. $75,000

D. $95,000

Reference no: EM132706917

Questions Cloud

Evaluate the challenges leaders face : Compare and contrast the key principles of these two theoretical concepts and evaluate the challenges leaders face in applying these theories in organizations t
Negotiation and conflict management : Describe social bandwidth and share an experience you've had with this concept within your previous interactions.
Which instances does not preclude an entity from recognizing : Which instances does not preclude an entity from recognizing depreciation during a certain period? The asset is classified as held for sale under PFRS 5.
What is the internal rate of return for this project : A project is estimated to generate cash flows of $40,000 per year for 10 years. The cost of the project is $226,000. What is the internal rate of return
What is the net present value of the project : A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project
Local elections compared to national elections : Discuss what you believe are the two most relevant reasons for low voter turnout in local elections compared to national elections.
Show the accounts increased and decreased : The boxed candy is sent to the distribution center, where it is sold to food brokers and retailers. Show the accounts increased and decreased
What is the estimated number of people : What is the estimated number of people moving into megacities every week? What are the problems to infrastructure with the rising population?
Exclusionary rule apply to criminal procedure : What is the Exclusionary Rule and what is an example? What are the exceptions of the rule? How does the Exclusionary Rule apply to criminal procedure?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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