What is the npv

Assignment Help Finance Basics
Reference no: EM133072931

A project your firm is considering requires an investment today of $58,000 and is forecasted to generate cash flows at years 1 through 14 (payments at t = 1 through t = 14) of $15,300 and a cash flow at year 15 (at t = 15) of -$60,400. Please take note that the cash flow at t = 15 is negative. If the appropriate discount rate for capital budgeting purposes is 12.5% per year, what is the NPV? Enter your answer accurate and rounded to the nearest dollar (i.e., the nearest integer).

Reference no: EM133072931

Questions Cloud

Calculate the amount of withdrawal : A local charity has just received a donation for $ 80,000 as well as the promise of another $ 50,000 contribution in one year . The contributions will be invest
Personal responsibility and financial literacy skills : Summarize how showing personal responsibility and financial literacy skills are related to promotional opportunities and growth within the workplace.
The game show paradox : - Let's say you are a contestant on a game show. The host of the show presents you with a choice of three doors, which we will call doors 1, 2, and 3.
Calculate jackson tax depreciation deduction for equipment : Jackson Corporation prepared the following book income statement for its year ended December 31, 2020:
What is the npv : A project your firm is considering requires an investment today of $58,000 and is forecasted to generate cash flows at years 1 through 14 (payments at t = 1 thr
Calculate the federal and provincial tax : For each of the below, calculate the federal and provincial tax on the investment income stated assuming Janice lives in New Brunswick and that her total income
ECON 251 Microeconomics Assignment : ECON 251 Microeconomics Assignment Help and Solution, American University of the Middle East - Assessment Writing Service
What is the slope of the line that results : Asset W has an expected return of 12.0 percent and a beta of 1.1. If the risk free rate is 4 percent, complete the following table for portfolios of asset W and
Calculate the risk and return for the portfolio : RDFOOD has following two assets in portfolio and risk and weights of individual assets are given below:

Reviews

Write a Review

Finance Basics Questions & Answers

  Combined stock and stock index futures contract

You have a stock index portfolio with a beta of 1.0 and a market value of $10,000,000. If you sell $10,000,000 nominal value of S&P 500 futures contracts, what is the return of the combined stock and stock index futures contract? What have you don..

  Are these facts consistent with emh

Are these facts consistent with EMH? Why or why not?

  Call options worth-net profit

Suppose you purchase ten call contracts on Kaho stock. The strike price is $75, and the premium is $4.10. If, at expiration

  Ratio of the risk premiums on two assets

Using the CAPM, show that the ratio of the risk premiums on two assets is equal to the ratio of their betas.

  What is fortune star total asset turnover

Fortune Star Inc. has a net profit margin of 12%, an equity multiplier (i.e., asset to equity ratio) of 2, sales of $575,000 and a ROE of 17%.

  What is your expected rate of return if you purchase stock

(Common stockholder expected return) If you purchased 125 shares of common stock that pays an end-of-year dividend of $3, what is your expected rate of return.

  Examine what profit margin must the firm achieve

Dante Co. wishes to maintain a growth rate of 10.6 percent a year, a debt-equity ratio of 1.1, and a dividend payout ratio of 22 percent.

  What is the yield to call on the bonds

Santos Energy has 9.5% annual coupon bonds outstanding with 15 years left until maturity. The bonds have a face value(FV) of $1,000 and their current market price (PV)is $1,007.76. What is the YTM on Santos's bonds?

  What was your netincome for the first year

You start a new business after you graduate. After its firm year in business, your firm paid out $1,000 in dividends, and paid $500 in taxes (of various kinds).

  Compute the covariance of two securities

Stock A is expected to return 12 percent in a normal economy and lose 7 percent in a recession. Stock B is expected to return 8 percent in a normal economy and

  Eighty percent of all technical assistants

Fifty percent of all technical assistants would like to have a PC. Eighty percent of all technical assistants would like to have MAC. Fourty-five percent of all technical assistants would like to have both. If a technical assistant is randomly sel..

  What is the lifo reserve and when is it used

What is the LIFO reserve and when is it used? - Why are inventories written down to the lower of cost or market?

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