What is the npv of project

Assignment Help Finance Basics
Reference no: EM132776016

Symon Meats is looking at a new sausage system with an installed cost of $470,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $68,000. The sausage system will save the firm $220,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $27,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?

Reference no: EM132776016

Questions Cloud

Calculate the basic eps and price earnings ratio : The latest share price is $49. Please calculate the basic EPS, price earnings ratio and dividend payout ratio for each of the companies
Prepare equity section of statement of financial position : Prepare the equity section of the statement of financial position for Hatch plc at December 31, 2019. Show all supporting computations
Discuss the potential benefits of your chosen mas : Developing your understanding of the purpose and use of Management Accounting Systems (MAS) and its usefulness in aiding managers make informed decisions
Summary - race and criminal justice in canada : Summary - Race and Criminal Justice in Canada - Shereen Hassan, Michael Ma, Lisa Monchalin, Melinda Bige, Melinda Bige and Simranjit Arora
What is the npv of project : If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?
Develop a consolidated financial projection of revenue : Develop a consolidated financial projection of revenue, pretax income, and cash flow for Nordstrom overall, over 8 years, both with and without the proposed inv
What is the highest probability of a price shock : What is the highest probability of such a price shock that John can tolerate, given that an expected return of at least 15% is required to recommend the project
How you would present return on equity : You are a research analyst for a publicly traded company, and you've been assigned to give a presentation on how a company uses performance metrics in corporate
Preparing pro forma financial projecting : What are six steps involved in preparing pro forma financial projecting's?

Reviews

Write a Review

Finance Basics Questions & Answers

  Companies often try to keep accounting earnings growing at

companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings

  Determine the volume of production required to breakeven

a local manufacturer of gears produces a miniature bevel gear and sells it for 15.30. the direct cost of production is

  Estimate of the intrinsic value of a share of the stock

What is your estimate of the intrinsic value of a share of the stock? If the market price of a share is equal to this intrinsic value

  Short-term financing options available

What recommendations would you, as Finance Director of an MNC, make to the CEO regarding the firm's policy for short-term financing, including the financing of trade?

  What factors you consider in determining your allocation

What steps should you take to determine the best allocation of your money market investments? What factors should you consider in determining your allocation?

  What is meant by functional analysis

What is meant by functional analysis? When should it be performed (if at all)? Why is it important in system engineering? What purpose(s) does it serve?

  Determine the appropriate time

How did it determine the appropriate time to make the change? What have been the results?

  Calculate the expected direct labour cost

(i) Calculate the expected direct labour cost of the 8th batch. (ii) Calculate the expected contribution to be earned from the product over its lifetime.

  What is the price-earnings ratio

A company has $5,800 in sales. The profit margin is 4%. There are 5,000 shares of stock outstanding. The market price per share is $1.70. What is the price-earnings ratio?

  What will be effect of the price increase on the firms fcf

Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm's FCF fo..

  Distinguish between the circumstances when a trust

1.distinguish between the circumstances when a trust qualifies for the 300 personal exemption versus the 100 personal

  Search the library and internet and provide an example of a

in 300 words please used apa styles and at least 3 references.search the library and internet and provide an example of

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