What is the npv of project

Assignment Help Finance Basics
Reference no: EM133119249

GoodFish Corporation is considering a new project with a four-year useful life. The initial investment on this project is $1,200,000 immediately. The future cash flows associated with this project are $650,000, $650,000, $650,000, and $856,000 in years 1, 2, 3 and 4, respectively. GoodFish has a target debt-equity ratio of 3, a cost of equity of 10 percent, and a pretax cost of debt of 8 percent. The tax rate is 25%. What is the NPV of this project?

Reference no: EM133119249

Questions Cloud

What is the two-sigma upper control limit for c-bar : Uber receives multiple complaints per day about driver behavior. Over 10 days the manager recorded the number of calls to be 7, 3, 0, 8, 9, 6, 7, 4, 9, 8. What
Is the mba a positive npv investment for you : You estimated that after the work ends, you will be able to increase your lifetime, after tax earnings by 700,000. Is the MBA a positive NPV investment for you
Calculate the roe for the firm : Calculate the ROE for the firm. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "%" sign in your response.)
Payment technology consumer : What regulatory requirements exist pertaining to the types of payment technology consumer companies should be using?
What is the npv of project : GoodFish Corporation is considering a new project with a four-year useful life. The initial investment on this project is $1,200,000 immediately.
Calculate stockholders equity at the end of the period : Assets = $49,000; Liabilities = $26,500; Dividends = $2,900; Revenues = $13,800; Expenses = $8,900. Calculate stockholders equity at the end of the period
What will loan proceeds be : To finance a project with an estimated NPV of $500 million and a $900 million investment cost, your firm wants to get a loan from an insurance company. Required
What is the present value of an investment : What is the present value of an investment that pays out 42 dollars per quarter for the next 5 years, if the appropriate rate is 8%? coumpound quarterly
How might you test your hypothesis : Describe a research question in psychology that interests you. Also, state a hypothesis for an experiment related to your research question

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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