What is the npv of project

Assignment Help Business Management
Reference no: EM131514034

You own a Pizza Restaurant and you need to expand your cooking capacity to meet demand. You need a new oven which will cost $100,000. Your current oven costs $15,000 a year to operate and you expect to save $5,000 a year operating this new oven. The anticipated life of the oven is 10 years and it will be worth $0 at the end of that period. Your current tax rate is 30%. You expect net profits to increase as follows: Y1 $7,500, Y2 to Y7 $10,000, Y8 to Y10 $12,000.

What is the NPV of this project? Should you buy the oven? Assume 10% interest rate.

Reference no: EM131514034

Questions Cloud

Great change within an organization : The use of teams can bring about great change within an organization; however, effective outcomes often depend on how teams are assembled and incorporated.
Two-page paper for the research paper : Write a two-page paper for the Research Paper to include:
Create a simple class diagram from the list of classes : CIS5302 Professional Skills for Business Analysis Assignment. Define and understand the Requirements. Create a simple class diagram from the list of classes
Overview of two employer-sponsored retirement plans : Provide an overview of two employer-sponsored retirement plans (a plan that provides income such as a 401K, not a retiree health insurance plan).
What is the npv of project : What is the NPV of this project? Should you buy the oven? Assume 10% interest rate.
Working with emotional intelligence : Discuss what change management principles from the Working with Emotional Intelligence have been incorporated into your team strategy.
Determine the current value of your total investment : Finance Journal Assignemnt- Determine the current value of your total investment. Do not make any changes to your investment at this time.
Working with emotional intelligence : Discuss what change management principles from the Working with Emotional Intelligence have been incorporated into your team strategy.
Discuss the risks that your team : Fully discuss the risks that your team has identified that they face at this time

Reviews

Write a Review

Business Management Questions & Answers

  Effective use of workplace conflicthow can leaders use

effective use of workplace conflicthow can leaders use constructive conflict or functional conflict as a tool for

  Challenges and barriers that impact an organization ability

There are many challenges and barriers that impact an organization's ability to create a culturally diverse workforce, yet one without a high degree of conflict that may arise with individuals of different heritages, perspectives and opinions.

  Assignment on project schedule changes

You have kicked off the District 4 Production Warehouse Move project, your contractors are in place and working on receiving the proper building permits.

  Washington mutual in the financial crisis

For the fall of Washington Mutual in the financial crisis in 2008, Discuss how securitization and falling home prices contributed to the demise of this company.

  Ethical issues-business ethics and moral philosophy

Explain the terms ethical issues, business ethics, and moral philosophy. essay format but a small paragraph would do. also my professor uses turnitin so do not want any plagiarisms.

  Compare an expensive restaurant

Compare an expensive restaurant, a fast-food restaurant, and a cafeteria in terms of process characteristics.

  Determine whether or not innovation is a manageable resource

Determine whether or not innovation is a manageable resource. Provide specific examples of how you would manage innovation or why you believe it is unmanageable.

  Investment and saving functions

Assume that the demand for real money balance (M/P) is M/P=0.6Y-100i, where Y is national income and i is the nominal interest rate (in percent). The real interest rate r is fixed at 3 percent by the investment and saving functions. The expected i..

  Chart on the second page

Write a 2 page paper stating your USP - unique selling proposition. Explain market segmentation, pricing or anything else that would help position your product for success in the marketplace and include your chart on the second page.

  What decision making criteria were ultimately used

What decision making criteria were ultimately used. What steps were taken to identify the values and rights of stakeholders? How were policy and legal requirements recognized

  Analyze advantages in employing just-in-time philosophy

Analyze three advantages in employing the just-in-time philosophy in Honda's organization. Evaluate three to five means in which the philosophy could potentially impact quality assurance.

  Raise finance for the expansion

Fresh Ltd (Fresh) needs to raise finance for the expansion of its fresh food business. It is considering two options: (a) a public issue of redeemable.

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