What is the npv of project-kolby korndogs

Assignment Help Finance Basics
Reference no: EM132444344

Kolby's Korndogs is looking at a new sausage system with an installed cost of $765,000. This cost will be depreciated straight-line to zero over the project's six-year life, at the end of which the sausage system can be scrapped for $100,000. The sausage system will save the firm $188,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $46,000. Required: If the tax rate is 35 percent and the discount rate is 7 percent, what is the NPV of this project?

Reference no: EM132444344

Questions Cloud

Explain each type of learning in detail : Provide a real-world example of each type of learning and explain how each method is applied in each of your examples. You should discuss one example.
What are the advantages of asset allocation : From completing the allocation, what are the advantages of asset allocation? How could the time your investments have to work for you and your age affect
Examine cultural relativism as an ethical theory : What are Aristotle's criteria for happiness, and why according to Aristotle does neither pleasure, nor honor, nor wealth constitute happiness?
Do you believe that erm will continue to evolve : Do you believe that ERM will continue to evolve, and if so, how? Do believe that risk is a two-sided coin with both upside gains and downside losses?
What is the npv of project-kolby korndogs : Kolby's Korndogs is looking at a new sausage system with an installed cost of $765,000. This cost will be depreciated straight-line to zero over the project
Where do art therapists practice : What setting were you most surprised to see served by art therapists? Why? Least surprised? Why? Do you think there are settings that are more beneficial
Summarize the data collection techniques in brief : Summarize 3 data collection techniques (Interviews, Surveys, Observations, Focus Groups, etc.). Compare and contrast the 3 data collection techniques you.
How can noise be reduced in a dataset : What's noise? How can noise be reduced in a dataset? Define outlier. Describe 2 different approaches to detect outliers in a dataset.
Discuss violence in company : Discuss military contributions to violence, as well as the human consequences of violence as described in Shay's "Betrayal of ‘What's Right.'"

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