User Account

All Pages

What is the net present value of the project

Assignment Help Finance Basics
Reference no: EM133112557

Your company has five delivery trucks that are getting old and only have two years of useful life left in them. As they are not fuel efficient and need a lot of repairs, they generate net cash flow for the firm of only $25,000 per year. Five new trucks will cost $250,000, but they will generate net cash flow for the firm of $75,000 per year for five years. At the end of five years they will no longer be usable 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: EM133112557

Questions Cloud

Develop an application to have server side scripting : Develop an application to have Server side scripting with database connectivity and Implement 2 web pages using HTML, XHTML and CSS
Components of total returns : Explain TWO (2) components of total returns that Amir could expect to receive if he invests in common stocks with an example.
Calculate the land tax liability for michelle : A property valued at $500,000. Included in this value is a house valued at $167,000. Calculate the land tax liability for Michelle
What is the objective of the firm : What is the objective of the firm in choosing an optimal capital structure?
What is the net present value of the project : Your company has five delivery trucks that are getting old and only have two years of useful life left in them. As they are not fuel efficient and need a lot of
Calculate the present value of the bond : On January 1st, 20Y1 Buckle Corporation issued $160,000,000 of 10-year, 12% bonds at a market interest rate of 15%. Calculate the present value of the bond
What is the project payback period : What is the project's payback period? Round your answer to two decimal places.
Outline and detail the ethical decision-making model : Mary Rogers graduated from Deakin and joined a financial advice firm. She succeeded in passing the three month probation period, and she now works full-time wit
Calculate the determinant : Calculate the determinant: Ask the user to choose the row and column to form a 2x2 matrix, which is a subset of the original matrix

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!

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