What is the npv associated with the transaction

Assignment Help Finance Basics
Reference no: EM133115121

Assume the following values:

  1. One time transaction for a sale of $250,000
  2. COGS associated with the sale $100,000
  3. Operating Cycle = 60 days
  4. DPO = 15days 
  5. Discount rate = 8%

What is the NPV associated with the transaction?

Reference no: EM133115121

Questions Cloud

What are some of the variables influencing price stability : What are some of the variables influencing price stability and employment that are largely beyond the Fed's control
Understanding of the impact of interest rates : The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (Credit Card Act) made major changes in the way and amount of information that is pro
Relationship between the capital base of banks : Discuss the relationship between the capital base of banks and the 2007-2010 financial crisis and great recession.
Calculate the approximate real rate of return : For this same bond in (a), if the current inflation rate is 4.5%, calculate the approximate real rate of return then the exact real rate
What is the npv associated with the transaction : Assume the following values: One time transaction for a sale of $250,000
Interest income from foreign assets : Assume that a bank has assets located in the EU worth 101 million euros, on which it earns an average of 9% per year. The bank has 76 million Euros in liabiliti
How much goodwill will result from this transaction : Jungleland's assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.8 million; How much goodwill will result
Describe the major types of exclusions : a. List and describe the major types of exclusions typically found in insurance contracts.
Implications of managing the financial planning : Your family members are discussing with you for the family financial planning. Please list down 5 major discussion points (ie., risk/return and etc.) to help yo

Reviews

Write a Review

Finance Basics Questions & Answers

  What is this volatility called

Describe briefly in words (no numbers) how you would calculate volatility for this option? What is this volatility called?

  What is the name of contractual clause

Who loses and who wins? How much? What is the name of contractual clause that can protect the "loser"?

  How much less magareit will have than frederico

At the end of the twenty years, how much less Magareit will have than Frederico?

  Describe luther problem behavior

Identify the hypothesis. On the basis of this information, describe Luther's problem behavior and your initial hypothesis about the function of his problem behavior.

  What is the value of the enterprise at time zero

Construct the venture's balance sheet at startup. Then construct financial statements for Years 1 and 2. (Put initial fixed-asset investments in Year 0 and initial working capital investments in Year 1. Assume the initial $50,000 is equity financed.)..

  Determine the annual financing cost of forgoing

Determine the annual financing cost of forgoing the cash discount under each of the following credit terms: a. 2/10, net 60 b. 1½ /10, net 60  c. 2/30, net 60 d. 5/30, net four months (assume 122 days) e. 1/10, net 30

  Find the market value of debt and equity using black-scholes

Find the market value of debt and equity using the Black-Scholes Option Pricing Model. If the firm decides to increase the volatility of its assets to, what will happen to the market values of debt and equity? Find the new values.

  Soft drink producer buying one of its bottling plants

Which of the following is an example of vertical integration? a. A custom software company purchasing

  Discuss the capital asset pricing model

Discuss the Capital Asset Pricing Model (CAPM), and examine it application in the Africa's asset markets.

  Advantages and disadvantages of sri

What are the key issues you should consider in your analysis of this SRI fund? What are the advantages and disadvantages of SRI?

  What kind of oil transaction would reduce your risk

You own a refinery. It is worth more if the oil price is higher. Intuitively, what kind of oil transaction would reduce your risk?

  Payback period and discounted payback period

What is the difference between payback period and discounted payback period?

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