What is the net present value of this project

Reference no: EM13261603

Dunia Construction Co. (DCC) is considering a new inventory system that will cost RM750,000. The system is expected to generate positive cash flows over the next four years in the amounts of RM350,000 in year one, RM325,000 in year two, RM150,000 in year three, and RM180,000 in year four. DCC's required rate of return is 8%.

i. What is the net present value of this project?
ii. What is the internal rate of return of this project?
iii. What is the modified internal rate of return of this project?

Reference no: EM13261603

Questions Cloud

What is fendys holding period return : Fendy purchased 800 shares of Grandsports' stock at RM3 per share on 1/1/12. He sold the shares on 12/31/12 for RM3.45. Grandsports' stock has a beta of 1.9, the risk-free rate of return is 4%, and the market risk premium is 9%. What is Fendy's ho..

What is the estimate value of dynamite industries : what is the estimate value of Dynamite Industries stock 2 years from now?

What is the pendulums length : Suppose that a simple pendulum consists of a small 58.0 g bob at the end of a cord of negligible mass. What is the pendulum's length

What is the bonds coupon rate : Buttercup Inc. just issued RM1,000 par 30-year bonds. Each bond was sold for RM1,107.20 and pay interest semiannually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate?

What is the net present value of this project : The system is expected to generate positive cash flows over the next four years in the amounts of RM350,000 in year one, RM325,000 in year two, RM150,000 in year three, and RM180,000 in year four. DCC's required rate of return is 8%.

How much grain was loaded into the car : a 10,000kg open rail car rolls under a hopper at 1m/s. the hopper dispenses grain into the moving rail car, how much grain was loaded into the car

Calculate profitability index for project a and project b : Calculate the profitability index for Project A and Project B. Which project is better?

Calculate the speed of light in the transparent substance : A light ray initially in water enters a transparent substance at an angle of incidence of 39.0°, Calculate the speed of light in the transparent substance

What is the p-value : A sample of 120 shoppers showed a sample mean waiting time of 8.5 minutes. Assume a population standard deviation of 3.2 minuest. What is the p-value?

User Account

All Pages