What is the npv of project-symon meats

Assignment Help Risk Management
Reference no: EM132528585

Symon Meats is looking at a new sausage system with an installed cost of $510,000. 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 $76,000. The sausage system will save the firm $190,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132528585

Questions Cloud

Reflections on the research experience : Reflections on the research experience. What was enjoyable, what was difficult, what insights had you gained, and any issues, challenges you experienced
List the users for each of the categories of ratios : List the types of ratios for each of the categories of ratios identified in 1 (A) above and state the formula to calculate each ratio identified
Short-term against a scenario of no discounts : -What is the impact of discounts in the forecast of cash flows in the short-term against a scenario of no discounts?
What will lens purchases be in june : What will lens purchases be in June? Wilson Inc. makes multi-colored glass lens for the astrological telescope industry. The planned production budget for next
What is the npv of project-symon meats : Symon Meats is looking at a new sausage system with an installed cost of $510,000. This cost will be depreciated straight-line to zero over the project's five-y
Stemming from ownership of a house : Monte is interested in protecting himself against loss stemming from his ownership of a house. He is worried about damage to the property due to fire
What are forecasted cash receipts in april : All sales are made on credit and are collected 60% in the month of sale, and 40% the month following. What are forecasted cash receipts in April?
How many cars should be produced in june : How many cars should be produced in June? Anticipated car sales for Yugo in the following months is planned to be: May 10,800 units, June 13,600
What are planned cash receipts in may : What are planned cash receipts in May? Slippy makes re-usable microbe testing pods that are transportable and has planned sales of be $211,000

Reviews

Write a Review

Risk Management Questions & Answers

  A project report on mutual funds

This project report speaks of the core and future aspects of Mutual Funds and the present challenges to cope with.

  Evalaute the theoretical option price

Evalaute the theoretical option price

  Risk and return

Investing in the stock market and Risk-free investment and inflation

  Evaluate the gross profit

Evaluate the gross profit

  Discuss concepts of risk and management

Risk lies at all levels of business activity. There are many different kinds of risks within an management as well as ways to manage risks.

  Determine the average risk premium

Here are stock market & Treasury bill percentage (%) returns between 2006 and 2010: Determine the average risk premium

  Hypothetical healthcare organization ratios

Discuss and explain why one should apply caution when using financial ratios for analyzing a healthcare management's current financial position and future viability.

  Discuss role of risk assessment

The financial information has been dominated currently by stories of financial institutions that have mis-measured risk as part of subprime mortgage crisis.

  Calculate maturity risk premium

The real risk-free rate is 3 percent, & inflation is expected to be 3 percent for the next two years. A 2-year Treasury security yields 6.3 percent.

  Selcting best option for portfolio

Suppose you are planning investing in two stocks to form a portfolio. Assume you do not like risk. Which one of given stock combinations will you select for your portfolio?

  Result of systematic or unsystematic risk

It has been a little over one year since the collapse of Lehman Brothers which was the first major event in the downturn of our stock market & economy.

  Determine risk management

Determine risk management? Discuss the importance of risk management in an organization? How does risk management mitigation create value for an organization?

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