User Account

All Pages

What is the npv of project-kinky copies

Assignment Help Finance Basics
Reference no: EM132668535

Kinky Copies may buy a high-volume copier. The machine costs $50,000 and this cost can be fully depreciated immediately. Kinky anticipates that the machine actually can be sold in 5 years for $16,000. The machine will save $24,000 a year in labor costs but will require an increase in working capital, mainly paper supplies, of $4,000. The firm's marginal tax rate is 21%, and the discount rate is 15%. (Assume the net working capital will be recovered at the end of Year 5.)

What is the NPV of this project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132668535

Questions Cloud

How will the method and learning be evaluated : Write an essay addressing each of the following points/questions. Be sure to completely answer all the questions for each bullet point.
Which is false regarding a section election : Which of the following is false regarding a section 83(i) election? The election allows employees of any corporation to defer income tax liability.
Discuss stocks as asset class : Discuss stocks as asset class in terms of their characteristics, attributes, and risk/return relationship.
What amount of taxes penalties will bryan be required : Bryan, who is 45 years old, What amount of taxes and/or early distribution penalties will Bryan be required to pay on this distribution?
What is the npv of project-kinky copies : Kinky Copies may buy a high-volume copier. The machine costs $50,000 and this cost can be fully depreciated immediately. Kinky anticipates that the machine
Identify a professional practice use of the theories : Architect Daniel Libeskind is credited with saying "To provide meaningful architecture is not to parody history, but to articulate it." The suggestion is that.
What is the capital balance of PV at the start of the year : Their profit ratio is 50%, 30%, 20%, while their original capital interest ratio is 4:4:2. What is the capital balance of PV at the start of the year
What was the cost of the twenty eight units sold : What was the cost of the 28 units sold? A company had beginning inventory of 12 units at a cost of $12 each on March 1. On March 2, it purchased 12 units at $18
What does diversity mean in this context : In employee recruitment and retention, one of the key goals is to maintain a diverse workforce. What does diversity mean in this context

Reviews

Write a Review

Finance Basics Questions & Answers

  Exceptions to the efficient market theory

How important are the exceptions to the efficient market theory?

  What is the resource-based view

That is, what are the dependent variables and what are the independent variables? Explain how the independent variables influence the dependent variables.

  What is its nominal annual rate of return

Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?

  Compute bid price per unit for a manufacturing company

Zeneth TV has received an order for 2,000 specially designed DVD players. This problem belongs to Finance and it discusses about calculation of total cost per unit and bid price per unit for a manufacturing company

  What is the value of a put option with a strike price

What is the payoff for a put option with a strike price of $50 if the stock price at expiration is $65?

  Maturity of outstanding bonds expecting interests rates

Is a treasurer who is lengthening the average maturity of outstanding bonds expecting interests rates in the near to medium-term to rise or to fall?

  Examine the share price history and history of traded volume

BAFN200 PRINCIPLES OF FINANCE GROUP ASSIGNMENT. Examine the share price history and history of traded volumes over the past five years

  Calculate what is the current price of the bond

20 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 7.21 percent, compounded semi-annually. What is the current price of the bond?

  Estimate the probability that the exchange rate

Black-Scholes model, estimate the probability that the exchange rate in one year will be (a) less than or equal to $1.25, (b) between $1.25 and $1.75.

  A commercial bank will loan you 7500 for two years to buy a

a commercial bank will loan you 7500 for two years to buy a car. the loan must be repaid in 24 equal monthly payments.

  Consumer behaviour between two countries

Analyse, compare and contrast cultural influences on consumer behaviour between two countries.

  Significant stake in the company that produces the laser

It should be noted that the physicians who are touting the laser hold a significant stake in the company that produces the laser.

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