What is the net present value of the project

Assignment Help Accounting Basics
Reference no: EM133084894

Question - A project has an estimated net present value of $7.2 million, with a useful life of 5 years. In year 6, there is cash flow from the residual value of the asset of $200,100. Assume straight line depreciation. The IRR of the project is 17.5%. At that IRR, what is the net present value of the project?

Reference no: EM133084894

Questions Cloud

Model and strategies of teaching : 1.) Mr David in the above figure used direct instruction when teaching Georaphy to promote learning through practice.
What is the performance obligation : Comfort King Ltd. sells central air units to residents as well as ongoing maintenance plans. What is the performance obligation
Does a leader being accountable for actions : Does a leader being accountable for his actions and decisions knowing that it is for the good of his team/organization is a leader who acts with integrity?
Boundless management-trait approach : Read this section, then in your journal, rank-order the four groups of leadership traits in order of importance, in your opinion. Be sure to explain your ration
What is the net present value of the project : Assume straight line depreciation. The IRR of the project is 17.5%. At that IRR, what is the net present value of the project
Implementation for internet cafe environment in malaysia : (a) Discuss Strategy, Architecture and Infrastructure implementation for an Internet café environment in Malaysia.
Model strategies of teaching : 1. Teacher Sharmila used Concept Attainment Model as a strategy in her Science classes to help her students learn attributes of concepts and critical thinking s
What is the cost allocation : Shipping costs are 3,0005 per hour. What is the cost allocation: Computer per order? Computer per unit? Labor per order? Labor per unit
What is a project schedule : Answer the following questions related to the processes for planning and scheduling carpentry work from plans and specifications:

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