What is the NPV

Assignment Help Accounting Basics
Reference no: EM132557519

Question - Your CEO has asked you to evaluate whether the firm should launch a new product. Information provided by the consultant is as follows: $20,000 has been spent on doing a market survey, and this cost has been incurred regardless of whether the project is done or not.

Initial investment: $120,000 composed of $50,000 for the plant and $70,000 net working capital (NWC)

Profits of $31,000 every year for 3 years after which the project ends and NWC is recovered. No salvage value for the plant.

For a discount rate of 8%, what is the NPV?

Reference no: EM132557519

Questions Cloud

What is the repayment for january : What is the repayment for January? Ottawa Publishing has a line of credit with their bank and must keep a $10,000 minimum balance each month.
Why is HDL considered the good cholesterol : Why is HDL considered the good cholesterol? Explain the role inflammation has in the development of atherosclerosis. Explain how each factor cause DVT.
What are the different types of accounting software programs : What are the different types of accounting software programs and what are the major differences between these programs? Please explain
Design a pre departure training for sending : Design a pre departure training for sending your employees from Pakistan to Australia?
What is the NPV : Profits of $31,000 every year for 3 years after which the project ends and NWC is recovered. No salvage value for the plant. What is the NPV
Entry stage of memory sensory memory : Why do we call the first/entry stage of memory "sensory memory"? What do we have to do to move sensory memories to short term memory?
Corporate strategy and business strategy : Give an example of a company using corporate strategy and business strategy. Explain how each are different
What is the total amount of dividends : The preferred stock has a par value of $100. What is the total amount of dividends that should be paid to the preferred shareholders in December, 2021
How much must the project remit to the contractor : A contract calls for a total payment of $800,000 with a guarantee. The contractor demonstrates he spent $623,000. How much must project remit to the contractor

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the amount of inventory loss from the flood

a flood destroyed the warehouse of Stuco Distributing Co. From the waterlogged records of the company

  Budget constraint and current consumption bundle

Derive Mr. Jones' budget constraint (resource constraint and budget line), denoting "housing" as the dependent variable. Illustrate his budget constraint and his current consumption bundle. Explain your diagram carefully.

  What is the amount of equity on december

What is the amount of equity on December 31, 2010? What is the amount of liabilities on December 31, 2011

  The chart of accounts of lopez company includes

In July the following selected transactions were completed. All purchases and sales were on account.

  Prepare a cvp chart for the company

Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit.

  Develop a tax structure

Is it possible to develop a tax structure that serves the needs of the people and at the same time is fair to all?

  Compute dow basic and diluted earnings per share

On February 28, 2013, Dow sold 63,000 common shares. Compute Dow's basic and diluted earnings per share for the year ended December 31, 2013

  What is the amount of outstanding checks

In the month of November, Leesa Company Inc. wrote checks in the amount ofRM25,770. What is the amount of outstanding checks

  Calculate a single charging rate for the maintenance

Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent

  Determine the total cost of ending work in process

solex company produces a high-quality insulation material that passes through two production processes. data for june

  Post the entries to the general ledger

Journal the Entries use the lines below to complete the journal entries and Prepare the Trail Balance from the General Ledger ending balances

  Compute the depreciation expense under the following methods

Compute the depreciation expense under the following methods in an Excel spreadsheet. Each of the following should be considered unrelated

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