What is the npv of the investment

Assignment Help Finance Basics
Reference no: EM132121073

If you insulate your office for $16,000, you will save $1,600 a year in heating expenses. These savings will last forever.

a. What is the NPV of the investment when the cost of capital is 5%? 10%?

b. What is the IRR of the investment? (Enter your answer as a whole percent.)

c. What is the payback period on this investment?

Reference no: EM132121073

Questions Cloud

Compare and contrast primary valuation alternatives : Compare and contrast primary valuation alternatives: historical costs (purchase price less accumulated depreciation), fair value (market price).
Define a relationship even x which is true : Based on the successor notion, define a relationship "odd (X)" which is true if X is an odd number.
Broker initial margin requirement : How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position?
Do you believe in the existence of wonder heaps : Give a one-sentence definition of i) worst-case running time, ii) tractable problems, iii) the Subset Sum Problem.
What is the npv of the investment : If you insulate your office for $16,000, you will save $1,600 a year in heating expenses. These savings will last forever.
How much more must you deposit today : How much more must you deposit today in order to have the same amount as your sister in 7 years?
Demonstrate the understanding of decision tree : BUSM4407: Advanced Project Risk Management - demonstrate the understanding of Decision Tree/Expected Monetary Value and the use of the software Precision Tree
What is the password used to encrypt the archive : We have recovered a flash drive with a password-protected archive. Help decrypt it. What is the password used to encrypt the archive?
Calculate the npv and decide : Calculate the NPV and decide if the system is worth installing if the required rate of return is 8%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of equity capital contribution

Computation of equity capital contribution and Before Tax Cash Flow and After Tax Cash Flow and What is the Before-tax Cash Flow to the equity investor

  How much money woul you have at the end of given years

How much money woul you have at the end of 17 years if you had made the same number of deposits but at the beginning of the year instead of at the end.

  Explain how much must you borrow to get 250000 in usable

bank a offers loans with a 10 percent stated annual rate and a 10 percent compensation balance. you wish to obtain

  What is the radius of gyration (rg) of this joint

Assume that the bolt loads a square cross-section of the joint 1.625 = 1.625 in.2 in area and that the joint is loaded along a loading plane defined by n = 0.7. What is the radius of gyration (RG) of this joint?

  How much foreign exchange gain should lindy report

How much foreign exchange gain or (loss) should Lindy report in its income statements for 2014 and 2015?

  What is the reorder point for small casings large casings

pawnee manufacturing produces casings for stereo sets large and small. in order to produce the different casings

  Governors of federal reserve serve overlapping terms

Suppose a new law mandates that all governors be appointed at the same time for concurrent terms. Would this increase or decrease the risks of discretionary monetary policy?

  What is the maximum amount you should pay to purchase

What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 11% rate of return?

  How much working capital does a corporation

How much working capital does a corporation with $50 million in short-term debt and a current ratio of 4 have? Show work. Explain what working capital is used for. List three sources of working capital

  What is the cost of goods sold

A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units, what is the cost of goods sold (assume LIFO)?

  Compute the cash payments made to suppliers during 2008

Assume that accounts payable reflects only accounts with inventory suppliers, and compute the cash payments made to suppliers during 2008.

  Components of a discounted cash flow in detail

What are the five components of a discounted cash flow in detail?

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