What is the npv for this investment

Assignment Help Financial Management
Reference no: EM131613046

The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $34,000 per year in Years 1 through 4, and $132,000 in Year 5. This investment will cost the firm $150,000 today, and the firm's cost of capital is 16 percent. What is the NPV for this investment? Round it to a whole dollar.

Reference no: EM131613046

Questions Cloud

What is market risk premium : A stock has a beta of 1.3 and an expected return of 14.9 percent. what is the market risk premium?
What is computron net operating profit after taxes : What is Computron’s net operating profit after taxes (NOPAT)? What are operating current assets? What are operating current liabilities?
What is the payback period for this investment : This investment will cost the firm $235,000 today, and the firm's cost of capital is 12 percent. What is the payback period for this investment?
What is portfolio beta : You own a stock portfolio invested 15 percent in Stock Q, 30 percent in Stock R, 40 percent in Stock S and 15 percent in Stock T. What is the portfolio beta?
What is the npv for this investment : What is the NPV for this investment?
Expected return-what must the risk-free rate be : What must the risk-free rate be?
What must expected return on the market be : What must the expected return on the market be?
What is the project irr : If the firm's cost of capital is 14 percent and its tax rate is 40 percent, what is the project's IRR
Stock has expected return-what must the beta of this stock : A stock has an expected return of 15 percent, the risk-free rate is 4.6 percent and the market risk premium is 9.3 percent. What must the beta of this stock be.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the appropriate discount rate for the project

What is the appropriate discount rate for the project? Inflation is expected to be 6.5% in China and 3.2% in the United States.

  Cash from a donor who temporarily restricted its use

The clinic incurred $4,500,000 in general expenses and paid cash for them. The hospital received $1,000,000 in cash from a donor who temporarily restricted its use.

  Minimum redemption value investor need to realize same yield

An investor purchases a 1000 bond redeemable at par that pays semiannual coupons at a nominal rate of 8% compounded semiannually and matures in ten years. The bond will yield an annual rate of 7% convertible semiannually to maturity. If the bond is c..

  Secondary market transaction

Which of the following transactions in NOT a secondary market transaction?

  Using best term-asset-only-asset-liability management

Fill in the blank for each definition using the best term - Asset-Only ‘AO’, Asset-Liability Management ‘ALM’, Tactical Asset Allocation ‘TAA’, & Strategic Asse

  What is the present value of their dividends

PV of dividends: Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends o..

  Formula of interest expense ebit

Formula of Interest expense EBIT divided by Interest expense but this does not seem correct -

  Calculate interest and principle for the payments

The investor takes $200,000 loan (at time zero) to purchase the machine at 8% interest rate. Loan has to be repaid by constant annual payments from year 1 to year 5 (5 payments). Assume 40% tax and minimum rate of return 10%. Calculate interest and p..

  Average annual total return on bonds

The average annual total return on bonds, including the percentage change in the bond prices, has been higher on average when a Republican president in is office. Explain why this statement may or may not be true, offering concrete evidence to suppor..

  Corporation marginal tax rate impact financial decisions

How does a corporation’s marginal tax rate impact financial decisions? What the mission, vision and core values for (company Builder Bob's)?

  Board of directors voted to grow the dividend

The Spinnaker Company has paid an annual dividend of $1.90 per share for some time. Recently, the board of directors voted to grow the dividend by 5.5% per year from now on. What is the most you would be willing to pay for a share of Spinnaker if you..

  Debt and an equity cost of capital

Gartner Systems has no debt and an equity cost of capital of 9.5%. What will? Gartner's levered value be in this? case?

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