What is the npv for this project

Assignment Help Accounting Basics
Reference no: EM133175713

Question - A restaurant chain is thinking about opening up a pop-up restaurant that it will run for two years. For both years, the restaurant will generate incremental net income (after costs, depreciation, and taxes) of $569k per year (we assume these cash flows take place at the end of each year). The restaurant will require a new temporary building structure that costs $462k and that will be straight-line depreciated to a salvage value of 0 over two years. This project will also require an upfront investment working capital of $281k, which will be returned at the end of the two-year project. The opportunity cost of capital is 11% and the tax rate is 30%. What is the NPV for this project?

Reference no: EM133175713

Questions Cloud

Develop a global strategic plan : Develop a Global strategic plan. pick any industry of your choice. discuss the attractiveness and the challenges that you forsee through the CAGE framework.
What is the future value of this prize : The Florida Lottery agrees to pay the winner 258,000 at the end of each year for the next 20 years. What is the future value of this prize
Statute of the international court of justice : Compare and contrast the Charter of the United Nations and Statute of the International Court of Justice with the United States Constitution.
Implementation of technology in the workplace : You will evaluate the application of socio-technical theory, social construction of technology theory, and actor-network theory to your work experience.
What is the npv for this project : A restaurant chain is thinking about opening up a pop-up restaurant that it will run for two years. What is the NPV for this project
Estimate the resources and duration required for activities : Analyze and explain why it is important to determine the critical path of a project?
What are monosaccharides and disaccharides : 1. What are monosaccharides and disaccharides? Provide three examples for each type of sugar
How long must the construction company fund the costs : The construction company can bill the owner for this subcontractor billing on May 5th. How long must the construction company fund the costs
Values of a ?rm and personal values : Why and how is Marketing tied to the values of a ?rm and your personal values? Give an example of your group/team's values from the Charter and its alignment or

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make an income statement in good form for april

Prepare an Income Statement in good form for April. Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

  Critically discuss variables in research method

A variable is a measurable characteristic that assumes different values among the subjects. Critically discuss variables in research method

  Monica realized a short term capital loss

Monica realized a short-term capital loss of $7,000. Her itemized deductions total $5,500. Start by computing Monica's adjusted gross income

  What is the authoritative guidance for asset impairments

What is the authoritative guidance for asset impairments? What is the best evidence of fair value? Describe alternate methods of estimating fair value

  What the minimum price at which a would sell components

What The minimum price at which A would sell components internally is? Division A produces a component for Hielkema Company's main product.

  What will she pay on march

The loan is due March 9 2011. Using the exact interest. What will she pay on March 9, 2011

  What is the expected percent of default

A small loan company finds 12% of its loans are defaulted for an average of 20% of the loan value. What is the expected percent of default for all their loans

  Overseas customer and the special discounted price

Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $81.90 per unit. By how much would this special order increase (decrease) the company's net operat..

  What are the portfolio weights for a portfolio that has 110

what are the portfolio weights for a portfolio that has 110 shares of stock a that sell for 79 per share and 85 shares

  Calculate the payback period and net present value

The new clubs will also require an increase in net working capital of $900,000, Calculate the Payback Period and Net Present Value followed by recommendations

  How long does a building last

You are the CPA for a nonprofit organization that has reha- bilitated a 200-year-old building into a museum. How Long Does a Building Last

  Calculate the weighted average cost of capital

Pinewood Property Ltd. is expected to have an operating profit of £1.5m this year. Calculate the weighted average cost of capital

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