User Account

All Pages

What is the npv of project

Assignment Help Business Economics
Reference no: EM132120899

A firm is considering a project that has the following estimated cashflows:

  • Increased sales to business of $100,000 for the next six years (starting in one year's time)
  • Increased costs of $30,000 for the next six years (starting in one year's time)
  • The initial capital expenditure required is $200,000, and salvage value at the end of six years is expected to be $15,000.
  • Cost of the feasibility study is $15,000.

If the firm is facing a discount rate of 8%, what is the NPV of this project?

Reference no: EM132120899

Questions Cloud

What aspects of the theory would be most suitable : Poverty has a strong influence on the lives of adults. When an adult lives in poverty, the effects extend beyond that individual to all those who depend.
What price should natbike charge each segment : What price should NatBike charge each segment if its goal is to maximize profits? What is the total profit?
What is ram receivables collection period : What is RAM's receivables collection period (DSO)? In your computations, assume there are 360 days in a year.
What components of these systems can you relate to ours : Chapter 14 includes information about low health indicators in the US, along with high cost, medical errors and other problems.
What is the npv of project : If the firm is facing a discount rate of 8%, what is the NPV of this project?
Explain the key environmental factors in china : What is the best way to enter the Chinese market? Evaluate and explain the key environmental factors in China that the company needs to consider.
Calculate and analyze the ratios : Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:
Analysis of international marketing environment for netflix : This case analysis intends to encourage you to conduct an analysis of an international marketing environment for Netflix,
Which project is preferable and why : Assuming a 11% required return, calculate the NPV, IRR, Payback Period, PI, and MIRR of each project. Which project is preferable and why?

Reviews

Write a Review

Business Economics Questions & Answers

  Compare the characteristics of loans

Compare the characteristics of loans and marketable securities in terms of liquidity, risk, and information costs.

  Firm international competitiveness

What impact does the dollar appreciation have on the firm's international competitiveness? What about dollar depreciation?

  Especially those with large populations of? renters

Many U.S.? cities, especially those with large populations of? renters, have rent controls. Suppose that San Francisco sets a rent control of $400 per month on? one-bedroom apartments. The graph on the right shows this situation.

  Illustrate the mutual benefits of trade

Also explain and illustrate how the terms of trade determine the extent to which each country specializes and then finally explain and illustrate the mutual benefits of trade.

  What values of discount factor would reversion to bertrand

For what values of the discount factor would reversion to Bertrand for only two periods sustain a collusive agreement to share equally the monopoly output?

  Penalty charges for this early payment of the loan

If there are no penalty charges for this early payment of the loan, how much will the car cost the new buyer?

  Bank account to achieve her retirement goal

Lisa plans to retire on her 61st birthday. On her 22nd birthday, Lisa will start savin $A per year for 40 years. Starting on her 62nd birthday, Lisa plans on withdrawing $10000 and will continue these annual with drawls until the account is exhausted..

  Write out the equation for net benefits

Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations:

  Economic climate affect what you invest in

If you were going to invest money, given the current financial market status, where would you invest your money today?

  Demand causation equals to suppy causation

Kelly went to watch her school's basketball game. She found that the height of basketball players is taller than the average height of her school's students. So she concludes that if you play basketball, you will be taller. What mistake she made in h..

  Explain what is meants by product mix efficiency

Explain what is meants by product mix efficiency and discuss the condiitions under which the market will give us product mix efficiency. In your explanation of product mix efficiency, you should discuss what slopes are relevant for product mix effici..

  How big will the ad-valorem tax need to be

If the government wants to collect from an ad-valorem tax levied on the consumers that will generate the same amount of tax revenue as a $5 specific tax

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd